1/29/2013 10:37:47 AM

The Vietnam Association of Seafood Exporters and Producers (VASEP) predicted Vietnamese shrimp exports may reach US$2.4 billion this year, an increase of 6.5 percent compared to last year. Vietnam achieved US$2.25 billion in shrimp export value via exports in 2012 to over 90 countries and territories across the world, down 6.3 percent from the previous year.

Of the total export value of US$2.25 billion, black tiger shrimp exports contributed US$1.16 billion, accounting for 56 percent, while white shrimp exports reached US$676.6 million, accounting for 32.8 percent. Although shrimp export value last year decreased by 6.3 percent compared to the previous year, these results were encouraging considering shrinking export markets and domestic economic difficulties, but were largely due to the great efforts made by shrimp farmers and processing companies and the support provided from state agencies.

Last year, five of the top 10 Vietnamese shrimp import markets, accounting for 95.2 percent of the share of export value, saw sharp decreases in shrimp imports, including the US down by 15.6 percent, EU 24.8 percent, Canada 14.1 percent, ASEAN countries 22.2 percent, and Switzerland 10.5 percent. Vietnam’s shrimp exports to Japan, the country’s largest shrimp import market, decreased from July 2012 due to increased control of Ethoxyquin residues in shrimp products with allowable residues of 0.01 ppm. Vietnamese shrimp exports also faced strong price pressure from the world market in September.

There was also a severe lack of raw shrimp as farming areas were affected by diseases. According to VASEP, the area of damaged shrimp farming last year reached 100,776ha, including 91.174ha farmed with black tiger shrimp and 7,068 ha farmed with white shrimp in such localities as Soc Trang, Bac Lieu, Ben Tre, Tra Vinh, and Ca Mau.

Diseases reduced the success rate in shrimp farming in Vietnam to between 30-40 percent, compared to 70 percent in neighboring Thailand. Increases in input costs also pushed Vietnamese shrimp production costs up by 15-25 percent. Moreover, Vietnamese white shrimp must face a fierce competition from their Indian counterparts in international markets.

Meanwhile, a number of programs to support shrimp farmers did not yield positive results, for example, the pilot shrimp export insurance programs for the 2011-2013 period in accordance with Prime Ministerial Decision 315 proved less effective with several inappropriate regulations.

According to VASEP, the shrimp farming and processing industry will continue to face many difficulties and obstacles this year, such as early mortality syndrome (EMS), lack of raw shrimp, lack of capital, and increased production costs. Some shrimp import markets will erect barriers against Ethoxyquin tainted shrimp, including Japan and possibly the Republic of Korea. Vietnam. Vietnamese white shrimp must compete with their India counterparts in key markets such as US, Japan, EU and Canada. However, VASEP predicted Vietnamese shrimp exports this year may increase 6.5 percent over the previous year.

From the beginning of 2013, the Ministry of Agriculture and Rural Development (MARD) proposed shrimp farming provinces to perform a total check of the quality of biological products used in shrimp production; prohibit the use of low-quality biological products; control quality shrimp breeding; and boost VietGAP-based shrimp farming models to meet the strict conditions of the import markets. Deputy Prime Minister Hoang Trung Hai also issued a document to direct MARD to focus on the planning of the agricultural sector, including large-scale shrimp farming and related mechanisms and policies to attract investment into this area.

According to VASEP, the implementation of enhanced shrimp support mechanisms and policies, along with due support from state agencies will help shrimp farmers and processing businesses increase trade promotion activities abroad. It is expected that shrimp exports this year will reach the set target with an increase of more than six percent compared to last year

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