Vietnam’s shrimp exports expected to face fierce competition in next 3-5 years

16-Apr-2021 Intellasia | The Saigon Times | 5:02 AM Print This Post

Vietnam will face tough competition over shrimp exports from rivals such as Ecuador, India and Indonesia in the next three to five years if the shrimp farming and processing technology is not improved.

Speaking at the opening ceremony of the VietShrimp Aquaculture International Fair on April 14 in Can Tho City, Le Van Quang, chair of Minh Phu Seafood Corporation, often referred to as “the shrimp king”, said that over the past few years, despite modern technology applied to shrimp farming, the prices of Vietnamese shrimp had remained uncompetitive compared with those in Ecuador, India and Indonesia. The export price of Vietnam’s shrimp is 30 percent higher than that of the three countries.

Quang said that though Vietnam’s shrimp price was higher than that of these countries, Vietnam’s shrimp exports could compete with them, driven by modern shrimp processing technology.

However, the advantage of the technology might gradually fade as Ecuador, India and Indonesia are also improving their technology and can produce value-added products and instant food just like Vietnam.

As such, in the next three to five years, these countries will catch up with Vietnam in terms of the shrimp industry.

Besides, the salary of workers active in the shrimp sector in India is one third of that in Vietnam, resulting in the lower price of its shrimp.

If Vietnam does not improve its technology and adopt new solutions and access methods, the country’s shrimp sector will face fierce competition in the next few years, said Quang.

Nguyen Viet Thang, chair of the Vietnam Fisheries Society, said that shrimp was the main export product among Vietnam’s seafood, with export revenue reaching $3.8 billion last year. The shrimp sector has significantly contributed to the growth of Vietnam’s agriculture industry and created jobs for millions of workers in Vietnam, mainly in the Mekong Delta region.

In 2021, the shrimp sector targets to farm shrimp on an area of 740,000 hectares, obtain a shrimp yield of 930,000 tonnes and fetch a revenue of $4 billion from shrimp exports, Thang said at the fair, which is set to wrap up on April 16.

https://english.thesaigontimes.vn/81452/vietnam%e2%80%99s-shrimp-exports-expected-to-face-fierce-competition-in-next-3-5-years.html

 

Category: Economy, Vietnam

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