VN shrimp costlier than China's
VN shrimp costlier than China's
The shrimp sector will face several challenges this year, despite an anticipated increase in exports, according to the Viet Nam Association of Seafood Exporters and Producers (VASEP).
Deputy Director of the VASEP Training and Trade Promotion Centre Le Hang said in the first half of this year, the shrimp sector earned more than US$1.35 billion, a year-on-year increase of 4.8 per cent. The sector is also expected to bring home $3.2 billion this year, up 10 per cent against last year.
She said the sector had seen recovery in key export markets such as the United States, the European Union, the Republic of Korea and China, except for an 8.8 per cent decrease in exports to Japan.
However, Hang was concerned that high production costs and a shortage of raw materials were among issues that have hindered the sector's growth.She said Viet Nam's shrimp export prices were 20 per cent higher than that of other foreign competitors. For instance, the average price of Vietnamese shrimp shipped to the United States is $11.2 per kilo, while China and India are selling at $6.7 and $10.8 per kilo, respectively.
Besides this, a surplus supply over demand has made the market's competitiveness fiercer both home and aboard, Chairman of the Board of Management of Minh Phu Seafood Group Le Van Quang said.
He said shortcomings and challenges were seen in most shrimp manufacturing processes such as breeding, harvesting, preservation and exports, which might lead to instability, high costs and weak competitiveness for the sector.
In order to cope with the situation, industry insiders said the state and relevant authorities should introduce overall measures to help the sector develop substantially, as well as increase its competitiveness in the context of economic integration.
