(vasep.com.vn) Seafood exports in Q1/ 2015 totaled US$ 1.27 billion, down 23% year on year, representing a 5-year low. Exports of shrimp and pangasius, the two major seafood products dropped sharply in the first two months. Shrimp exports reached US$ 348.6 million (down 30%) and pangasius exports valued nearly US$ 225 million, down 18%.
Ms. Nguyen Thi Anh, director of Song Tien Trading Co., Ltd. (Sotico) revealed that the company focuses on EU market. Since 13th March, importers have insisted on discount sales as the euro depreciates. This slows down sales of the company. Currently the company has recalculated cost structure and the maximum cost reduction. However, current price of pangasius exports to Europe coupled with high price of raw material can make enterprises suffer losses.
'In 2015, shrimp from sources like India, Indonesia and Thailand rose, while currencies of these countries are traded at floating rates against the US dollar. These factors forces their shrimp retail prices become more competitive.’ said Mr. Tran Van Linh, general director of Thuan Phuoc Seafoods and Trading Corporation in Da Nang.
'High anti-dumping duties on shrimp exported to the US means we need to lower price to stay competitive. However, if prices are lowered too much, the company will face loss. Or else, it would be problem of unsold products.', he said.
Over 90% of aquaculture enterprises choose USD as the currency of settlement in international trade. Therefore, volatility in currency exchange rates will negatively impact competitiveness of Vietnamese enterprises. In recent years, currencies used in major importing destination such as EUR and JPY depreciate against the dollars. This forces Vietnamese exporters to lower their prices, causing the decline in total seafood export value.