Econ
Shrimp industry ambitious for $4.8 billion export plan
Vietnam’s shrimp exporters are expected to meet the US$4.8 billion export target this year thanks to market advantage and competitive improvement of added-value products.
According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the shrimp industry has had a good start this year, with export turnover in the first quarter rising by 18 percent year-on-year to US$700 million.
Le Van Diep, deputy general director of Minh Phu Seafood Corporation, which is Vietnam’s largest shrimp exporter, said that Vietnamese shrimp has to compete fiercely against Indian and Indonesia products as the latter’s products are often 10 percent cheaper than Vietnamese.
However, the corporation has decided not to compete in price, but in quality, Diep said, adding that the strategy of focusing on added-value products has helped it stand firmly in the American, European, Japanese and South Korean markets.
With the advantages, Minh Phu Seafood Corporation targeted to earn $800 million from shrimp exports this year.
The better competition of Vietnamese shrimp has also shown in the export of white-leg shrimp. With some 50 percent of white-leg shrimp being added-value products, it brought the country up to $2.5 billion last year, three times higher than the export value of black tiger shrimp.
Besides the competitive improvement, Vietnamese shrimp has also enjoyed advantages from existing mechanism and policies include a program on sustainable development of the fisheries economy during 2016-2020.
Under the program, the shrimp industry will actively produce varieties of black tiger shrimp and white leg shrimp to meet the demand of market demand.
Meanwhile, the Ministry of Agriculture and Rural Development as well as other State management agencies have removed many obstacles in export procedures to create favorable conditions for export enterprises.
The shrimp sector now has many favorable conditions with the Government’s higher attention, including opening of material production centers and solutions on supplying raw material, according to a representative of Minh Phu Seafood Corporation.
Regarding the export market, according to the Vietnam Association of Seafood Exporters and Producers (VASEP), the global economy is expected to recover strongly, especially in major markets such as the US, Europe, Japan and China, which is the basis for forecasting a higher demand of seafood in those markets this year.
In addition to this, a series of bilateral and multilateral free trade agreements (FTAs) will open up more opportunities for Vietnamese enterprises to boost seafood exports to those markets, the association said.
For instance, VASEP expects shrimp exports to South Korea to increase strongly in future due to the support in tariff as a result of the FTA signed between Vietnam and South Korea.
The value of Vietnam’s shrimp exports to the EU is also positive as the European consumers prefer value-added seafood products.
Another favorable factor is that other shrimp-exporting countries are facing difficulties in production and exports. For example, India tends to reduce shrimp exports to the European Union as it is subject to a 50 percent border check.
The representative of Minh Phu Seafood Corporation said Vietnamese shrimp exports must face the strong competition from India and Indonesia. The corporation has a strategy in place to match the product quality with those markets as well as increase value-added products.
In 2017, Vietnam gained $3.85 billion in seafood export value, a year-on-year surge of 22 per cent, with large contribution from white shrimps at $2.5 billion.
Last year, Vietnam exported shrimps worth $1.48 billion to the European Union, $1.41 billion to the US, $1.3 billion to Japan, $1.2 billion to China and $780 million to South Korea.
Minh Phu Corporation targeted to earn $800 million from shrimp exports in 2018
|
However, the corporation has decided not to compete in price, but in quality, Diep said, adding that the strategy of focusing on added-value products has helped it stand firmly in the American, European, Japanese and South Korean markets.
With the advantages, Minh Phu Seafood Corporation targeted to earn $800 million from shrimp exports this year.
The better competition of Vietnamese shrimp has also shown in the export of white-leg shrimp. With some 50 percent of white-leg shrimp being added-value products, it brought the country up to $2.5 billion last year, three times higher than the export value of black tiger shrimp.
Besides the competitive improvement, Vietnamese shrimp has also enjoyed advantages from existing mechanism and policies include a program on sustainable development of the fisheries economy during 2016-2020.
Under the program, the shrimp industry will actively produce varieties of black tiger shrimp and white leg shrimp to meet the demand of market demand.
Meanwhile, the Ministry of Agriculture and Rural Development as well as other State management agencies have removed many obstacles in export procedures to create favorable conditions for export enterprises.
The shrimp sector now has many favorable conditions with the Government’s higher attention, including opening of material production centers and solutions on supplying raw material, according to a representative of Minh Phu Seafood Corporation.
Regarding the export market, according to the Vietnam Association of Seafood Exporters and Producers (VASEP), the global economy is expected to recover strongly, especially in major markets such as the US, Europe, Japan and China, which is the basis for forecasting a higher demand of seafood in those markets this year.
In addition to this, a series of bilateral and multilateral free trade agreements (FTAs) will open up more opportunities for Vietnamese enterprises to boost seafood exports to those markets, the association said.
For instance, VASEP expects shrimp exports to South Korea to increase strongly in future due to the support in tariff as a result of the FTA signed between Vietnam and South Korea.
The value of Vietnam’s shrimp exports to the EU is also positive as the European consumers prefer value-added seafood products.
Another favorable factor is that other shrimp-exporting countries are facing difficulties in production and exports. For example, India tends to reduce shrimp exports to the European Union as it is subject to a 50 percent border check.
The representative of Minh Phu Seafood Corporation said Vietnamese shrimp exports must face the strong competition from India and Indonesia. The corporation has a strategy in place to match the product quality with those markets as well as increase value-added products.
In 2017, Vietnam gained $3.85 billion in seafood export value, a year-on-year surge of 22 per cent, with large contribution from white shrimps at $2.5 billion.
Last year, Vietnam exported shrimps worth $1.48 billion to the European Union, $1.41 billion to the US, $1.3 billion to Japan, $1.2 billion to China and $780 million to South Korea.
