VN predicts reduction in shrimp exports
VN predicts reduction in shrimp exports
The Viet Nam Association of Seafood Exporters and Producers (VASEP) has predicted the total shrimp export value for this whole year will drop to US$2.9 billion due to various difficulties.
The association in July cut its target for total shrimp export value from $3.1 billion to $2.9 billion for the whole year, marking a downtrend in the volume and value of shrimp exports in all markets, especially key export markets.
The reduction was mainly attributed to lower demand on the export market, lower competitiveness against shrimp exports from other countries and a decrease in the value of foreign currencies while the Vietnamese dong had remained unchanged, the association said.
According to statistics from the General Department of Customs, Viet Nam's shrimp export value in the first 10 months of this year reached $2.5 billion, a year-on-year reduction of 26.7 per cent.
Shrimp exports to the United States, Japan and the European Union reported this tremendous decline compared to the same period in 2014. In contrast, shrimp exports to the United Kingdom, Hong Kong and Malaysia rose 11.1 per cent, 3 per cent and 17.8 per cent, respectively.
During the first 10 months of 2015, the United States was still Viet Nam's top shrimp importer but shrimp exports to the country accounted for 21.8 per cent of the total national exports, falling from 27 per cent in the same period of 2014.
Exports to Japan and the European Union, on the other hand, increased by 1.5 per cent and 1.7 per cent, respectively.
The total value of shrimp exports to the United States in the first 10 months fell by 41 per cent to $536.5 million over the same period last year.
With lower anti-dumping tariffs in the ninth period of review (POR9) for Vietnamese shrimp and the conclusion of the Trans Pacific Partnership, Viet Nam's shrimp exports to the United States are expected to improve by this year end, the association said.
Japan was the second-largest consumption market for Vietnamese shrimp in the first 10 months. The export value of local shrimp to Japan reached $486.7 million, down 20.8 per cent year-on-year. The decline in the value of shrimp exports to the market was attributed to the yen's devaluation and the economic downturn.
Shrimp exports to the European Union during the first 10 months hit $466.5 million, down 19.7 per cent year on year.
During the same period, the United Kingdom was the only market among the top three markets in the European Union to report growth of 11.1 per cent year on year. This was caused by a rise in import demand for warm water shrimp. Viet Nam's shrimp exports to Germany and the Netherlands, meanwhile, tumbled 18 per cent and 30.2 per cent, respectively.
Shrimp supply by main producers, such as India, Thailand, Ecuador and China, may drop due to an epidemic outbreak, so the shrimp price is likely to inch upwards. In addition, the domestic currencies of large importers, such as the euro, the US dollar and the yen, are more stable than before.
This is good news for Vietnamese shrimp exports for the last months of the year. Meanwhile, higher demand for shrimp during the Christmas and New Year holidays is likely to improve Viet Nam's shrimp exports by this year end.
VASEP said the total export value of shrimp in the last quarter would reach $800 million, a year-on-year reduction of 25 per cent.
