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August 13, 2015

Vietnam

Strong Dollar Pushes Revenues Down

 

The Vietnam Association of Seafood Exporters and Producers (VASEP) says shrimp exports to the USA have fallen by 40 percent in the first half of 2015 to $638 million.

 

VASEP expects increased demand in the USA in the second half of 2015, thanks to lower anti-dumping taxes and falling supply from India, Thailand and Ecuador due to shrimp diseases, the rising cost of farming and lower export prices.  However, Viet Nam is unlikely to benefit from the increase in demand because of the dong’s strength.  The currencies in many other shrimp-producing countries have fallen against the greenback, making their products more attractive.

 

While economists have been calling for a devaluation of the dong by another 7-10 percent, the State Bank of Viet Nam said it would not weaken the dong any more, although it did reduce the value of the dong by 2 percent earlier in 2015.

 

Prices of Vietnamese exports to the USA have declined by $1.50 to $2.00 per kilogram this year, but they still remain $1.50 to $2.00 higher than products from competitors like India, Indonesia and Thailand.

 

Vietnam’s other two major shrimp markets, Japan and the European Union, have also cut imports from Vietnam by 18.6 and 15.2 percent, respectively, and are looking for cheaper products elsewhere.

 

Vietnam’s exports to China and South Korea also fell sharply, with demand in the former market being hit by the recent crash in the stock market, which has caused belt-tightening among the middle class.

 

VASEP said the USA, the biggest importer of the country’s shrimp products, accounts for 20 percent of Vietnam’s shrimp exports.

 

Vietnam’s exports to all countries were down 28 percent to $1.4 billion.

 

Source: Seafood.com (an online, subscription-based, fisheries news service).  Editor and Publisher, John Sackton (phone 1-781-861-1441, email jsackton@seafood.com).  Vietnam Says Strong US Dollar Will Push Exported Shrimp Revenues Down 40% in 2015.  Michael Ramsingh (phone 1-732-240-5330, email michaelramsingh@seafood.com).  August 11, 2015.

 

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