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Seafood Exports Likely To Fall Short Of US$10 Billion Target

Vietnamese seafood companies need to work harder to realise the export target of 10 billion USD set by the Ministry of Agriculture and Rural Development

The yearly growth rate of seafood export in the period this year, at 6.4%, was much lower than the same time last year, with 19.3%.
According to Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), instability in the world market and oversupply of shrimp worldwide are the main causes of the dwindling growth.
“Exports of seafood products are likely to fetch US$9 billion, but US$10 billion is a far cry. However, we are trying our best,” Hoe said.
He noted that revenue from seafood exports in July was less than US$700 million, adding that however, the season for export are in the last months of the year, and if export value can maintain an increase of US$100 million each month, Vietnam will pocket US$9 billion from seafood exports by the end of this year.
As shrimp, tra fish, and tuna are the largest contributors to the nation’s export revenue, a fall in shipment of one of the three products will affect results of the whole sector.
Statistics from VASEP showed that shrimp exports in the second quarter of the year fell 4.9% to US$893 million due to fluctuations in both domestic and foreign shrimp prices. However, thanks to a robust growth of 20% in the first quarter, total export for the first half of the year still showed a slight increase of 5.1% to US$1.6 billion.
With shrimp demand expected to rise in the second half, Vietnamese shrimp exports are forecast to reach some US$4 billion.
In contrast to the rough seas faced by shrimps, tra fish export revenue grew nearly 20% from the same time last year to over US$1 billion in the first six months. Strongest growth was seen in the Chinese market (46.7% with more than US$251 million), followed by the EU (16.2%, US$117 million), and the US (11.6%, US$197 million).
Tuna exports during January-June also picked up 12% to nearly US$303 million. Shipments to Israel are expected to increase while those to the EU will have favourable conditions as both sides are concluding the negotiations of free trade agreement.
However, exports to the US will face challenges due to fierce competition, and falling demands.
Source: https://customsnews.vn/

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