(vasep.com.vn) Many exporters are worried about the sharp depreciation of the euro while the European economy is stagnating.
Value of the euro is at its 12-year low. On the morning of the 16th March 2015, in Tokyo, Japan, 1 euro was traded US$ 1.0451, which means a lost of 25% within a year. The euro started to depreciate from mid-2014 and the value against USD fell sharply from December 2014.
Due to the volatility of the euro, many seafood companies have difficulties in signing new contracts to export to EU. A business in Ho Chi Minh City complained of slow feedbacks from European partners due to exchange rate fluctuations.
The uncertainty of European market caused some companies to look forwards to expanding into other markets such as the US, Japan, Korea and the Middle East.
A pangasius company in Tien Giang also revealed that importers only signed the agreement if goods were sold at discount.
Currently, pangasius export price to European market is at its lowest of US$ 2.6/kg. In order to create 1 kg of pangasius fillet, it takes 3 kg of raw fish. Price of raw material is relatively high, therefore, if the price is reduced by 10-12 cents per kg, the company will be in lose position. As the result, companies must keep fish in storage and face high inventory and high input costs.