According to the Ministry of Agriculture and Rural Development (MARD), Vietnam’s total agro-forestry-aquatic export turnover is expected to hit a new trade surplus record of about US$8 billion in 2017, up from a record of US$7.6 billion in 2016.
These figures are far higher than the economy’s trade surplus as a whole-US$2.6 billion in 2016 and an estimated US$6.5 billion for 2017.
In 2017, the sector’s export and import turnover is forecast to reach US$32.5 billion and US$24.5 billion, respectively. In 2016, the figures were US$32.1 billion and US$24.5 billion, up 5.4% and 4.9%, respectively, year-on-year.
MARD has set a target of 2.5%-2.8% in sector growth for 2017, based on local production recovery and higher external demand.
For example, the wood sector is expected to reap an export turnover of US$7.6 billion this year, up from US$6.9 billion last year. This is due to increased demand in established markets like the US, China, and Japan, and new markets like India, the Middle East, Chile, and Brazil.
Vietnam Timber and Forest Product Association’s chairman Nguyen Ton Quyen told VIR that many local wood product exporters are expecting a higher export turnover.
In the northern region, Nam Dinh Forest Product JSC is projected to hit an export turnover of US$45 million in 2017-up from US$40 million in 2016. The respective figures for Woodsland Company are US$47 million and US$42 million.
In the south-central province of Binh Dinh-Vietnam’s wood processing hub-Tien Dat Company is predicted to hit US$50 million this year, up from US$45 million last year.
This respective figures are US$32 million and US$30 million for Dai Thanh Company, and US$25 million and US$20 million for Thang Loi Company.
According to MARD, Vietnam’s aquatic product export turnover for this year is expected to be about US$7.3 billion, up from nearly US$7 billion last year.
Some aquatic processing firms are upbeat about their business prospects this year.
For instance, Vinh Hoan Corporation-one of Vietnam’s biggest pangasius product exporters and processors-reported that its export turnover during 2016’s first 11 months rose 10% year-on-year.
Hung Vuong Corporation, also reported revenues that reached nearly VND5 trillion (US$227.27 million) in the fourth quarter of 2016, and VND19.92 trillion (US$905.5 million) for the 2015-2016 fiscal year, of which over VND13.2 trillion (US$600 million) was earned from the local market, up by VND1.5 trillion (US$68.2 million) year-on-year.
The firm’s export turnover soared by 42%, reaching VND6.72 trillion (US$305.3 million) and accounting for 34% of Hung Vuong’s total revenue.
Another company Sao Ta Foods JSC expects to earn US$150 million in revenue for 2017-up 7.1% year-on-year and providing the firm with a net income of at least VND100 billion (US$4.54 million) for 2017.
Source: VNA
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