Seafood export market expansion

In the first six months of 2018, there has been strong growth in the seafood market which ranks in the top five with export value over one billion USD. This field is highly expected to be the leading industry of the year.

Steady growth

In the first six months of 2018, seafood export reaches over four billion USD with major varieties of shrimp and pangasius, up 13% in compared with the same period last year.

Export value of pangasius increased nearly 33% in June with more than 200 million USD, leading total export value approximately one billion USD, up 21%. International Development & Investment Corporation (IDI) estimates to reach its turnover of 3,000 billion dong with earnings after tax of 300 billion dong. The company’s revenue and profit account for 43.7% and 51.7% of the annual plan respectively.

As a leading pangasius processor and exporter, Vinh Hoan Company has seen its growth in the first half of the year. Selling pangasius mainly to the US market, Vinh Hoan was not imposed the anti-dumping duty and the rise in USDVND spot exchange rate has become a favorable condition for the company. In China market, Vinh Hoan has been boosting its cooperation with leading online retails, aiming its growth of 10% more than 2017.

Minh Phu Seafood Corporation and Sao Ta Foods JSC are recognized as two major exporters of shrimp. Minh Phu’s factory is working at full capacity; it thus requires further investment. In the first half of the year, Sao Ta estimated to reach 7,787 tons of shrimps of all kinds, up 18.7% as compared to the same period last year. Export value accounts for 90% revenue of the company.

Aim to Africa and Middle East

One of the most concerns among Vietnam’s seafood enterprises is increasingly trade protection in markets as US and EU. The US has set a limit on importing pangasius by building technical barriers of duty and Farmbill. Additionally, Vietnamese enterprises may encounter numerous obstacles to export their products to the Chinese market as the country’s decrease in import tax has triggered enterprises to sell their products through official channel. And yet many products are still exported to this market unsupervised, leaving difficulties in quality control.

In order to expand the seafood export market, Vietnamese enterprises have to find a new way to such potential markets as Africa and Middle East. These two countries are in high demand of goods, especially seafood since the climate and conditions are not suitable for seafood aquaculture. Do Quoc Hung, Deputy Director General of Asia and Africa Market Department under Ministry of Industry and Trade, said that Vietnamese enterprises may find solutions to seafood trade by seeking opportunities in Africa and Middle East markets

>> According to VASEP, as the world’s demand in shrimp begins to rise and its price in local and international markets is staying steady, Vietnam’s shrimp export is estimated to reach four billion USD in 2018.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button