Viet Nam Seafood in world market

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Viet Nam Seafoodin world market
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Challenges Outlook
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World Aquaculture Production
The word aquaculture sector has undergone strong
development in recent ten years, playing the
major role in the global seafood
growth. Freshwater aquaculture (incl. brackish
culture) contributes a major share in the global
aquaculture production.
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The freshwater aquaculture
The world aquaculture production comes from two
sources China and other countries. Viet Nam
ranks third. And its aquaculture industry began
growing strongly and quickly since 2003,
especially shrimp and Pangasius industries.
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World Seafood Export
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Vietnam Seafood Industry

• Following the common trend in the world seafood
  industry, farmed seafood constitutes a basic part
  in the growth of Viet Nam's seafood industry.
• And Viet Nam seafood industry is expected to
  continue growing in at least five years with
  market expansion as world demand for seafood
  growing.
• Competitiveness of Viet Nam seafood industry
  mainly relies on cheap labor costs, competitive
  material costs and scale of production.
• Viet Nam aquaculture has not been a well
  controlled sector, though this country has a
  modern seafood processing industry.

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Structure of aquaculture product
Ngu?n s? li?u FAO - Fishstat
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Shift in product structure

• Strong development and growth of Viet Nam
  seafood industry is mainly attributed to robust
  growth of aquaculture sector.
• Majority of products for export are processed
  from farmed shrimp and Pangasius, and cephalopods
  and tuna which are caught from the wild.
• Under pressures of consumption markets, Viet Nam
  seafood industry is losing its diversity,
  remaining focused on key products. Shrimp and
  Pangasius alone accounted for nearly 50 percent
  of total export volume.
• The poor transportation system can negatively
  impact earnings and profits in case of energy
  fluctuation.
• Investors are facing high risks since so far
  aquaculture sector has failed to prove it as a
  controlled industry in both volume and quality of
  materials.

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Vietnam Seafood Export by markets
An important trend now is downsizing share of
traditional markets, and penetrating into new
markets.
The selling prices in most new markets are lower
than those of such traditional markets as the
U.S., Japan and EU.
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Market Movement

• The seafood prices in the world tend to be
  lower,
• Since 2003 Viet Nam seafood processors have
  actively opened new markets, especially focusing
  on markets consuming cheap price products.

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Market trend

• The shrink of Japan and America markets makes
  downsizing Viet Nams shrimp export
• Exporting goods target at new markets in EU and
  others with high demand for freshwater and
  low-priced products
• Some exporters cope with the shrink of Japan and
  America by diversifying to the new markets
  outside the 3 big places (EU, America and Japan)

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Note EU market

• The expanding market process towards the East
  started in 2004 and is still under way. This is
  to develop the market to be the biggest seafood
  exporting market for Viet Nam
• In comparison with traditional market like
  America and Japan, the Eastern Europe market is
  much more easy going
• In terms of tradition and economic condition,
  Eastern Europe is the market for freshwater
  seafood and low price food the market suitable
  for Viet Nam
• Cheap labor costs and socio-economic conditions
  have allowed Eastern Europe to develop processing
  industry with high demand for input materials.

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Product Structure Movements

• Up to 2003, the main exporting product is
  shrimp.
• After 2003, the product structure move rapidly
  with the growth of pangasius industry.

Ngu?n s? li?u VASEP/ Th?ng kê H?i quan
Imbalance in product structure is reflected
clearly in exporting. Total shrimp and pangasius
exporting amount account for 60
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Changes of Product Structure

• Focusing on exporting products on shrimps,
  pangasius the two raising products and
• The imbalance in product structure is reflected
  in exporting total amount of shrimp and
  pangasius exporting account for 60.
• Other kinds of seafood products have disappeared
  in the market some are not competitive and
  cannot be exported because of high producing
  costs.

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The structure of farmed Shrimp product
Source FAO

• White shrimp contributes greatly in product
  structure recently. However, major exporting
  product is still tiger shrimp
• Statistics by FAO 2006 must be considered. In
  fact, the changing process into shrimp is not so
  quick.

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Shrimp Exporting Market

• Shrimp The most important seafood product of
  Viet Nam is now facing big challenges as we are
  not well-controlled for input materials and some
  potential market problems
• There are two main moves from traditional
  markets (USA and Japan) to EU and other new, less
  choosy markets. Most remarkably is the Korea
  Market in 2007 and 2008.

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Shrimp Exporting Prediction in 2008

• Market problems
• The competition of white market with high
  productivity and lower prices
• Aim at luxury food, while the consuming demand of
  the market shrink in economic recession.

ARIMA model (2,1,2)CafeF Research Program
China, and especially Thailand have rapidly moved
to white shrimp in just one year.
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Pangasius (inc. tra basa)
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Pangasius exporting changes
Poland enter EU in late 2004. Vietnam Exporter
switch to Russia, Poland and Ukraina.
In July, the pangasius exporting amount increased
94, the export growth in seven months is
43. Two most rapidly developing markets are
Russia and Ukraine, the developing rate
consecutively are 92,7 and 200.
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Exporting market mechanism

• 2008 sees the completion of moving pangasius
  exporting trend towards new markets in Eastern
  Europe Markets like Ukraine, Russia, Poland
  instead of USA market. Those are much easy going
  markets, having the habits of consuming
  freshwater and low price products.
• The trade growth in ASEAN - the market which is
  more understandable going in comparison with
  USA and EU market.

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Exporting market structures

• Russia and ASEAN markets are positioned as lower
  price products market than EU and the USA
• Pangasius product prices continue to decrease
  gradually.
• Frozen fillets and pangasius now have supreme
  price advantage over other products like Nile
  perch and

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Some predictions

• Seafood prices will continue to decrease
  gradually
• The suitable supply control of seafood to tackle
  the input material problem may not be carried out
  because of disagreements in settling interests
  for farmers.
• Vietnam tiger shrimp export products are facing
  challenges when aiming mainly at big markets
  where those economies now facing great
  difficulties. Some enterprises have found some
  good exporting markets when moving to Asia but
  accept lower price products.
• The changing process into white shrimp is taking
  place, but have not received full attention and
  support from relevant agencies of their fear of
  disease control.
• Pangasius industry will still develop at least in
  2009, mainly in Eastern Europe. But China is
  taking Vietnam to the low-priced battle.
• Yeallowfin tuna in Viet Nam is potential while
  bluefin tuna is getting more expensive

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Exporting predictions
ARAR model CafeF research program
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The predictions are based on the research of
CafeF The predictions are constructed by
prediction software named Linear Model Estimates
LME (the software is developed basing on
research by CafeF) The predictions serve for
reference purposes only. We do not take
responsibility for the problems that may occur if
the predictions are used for business purposes.
To receive reports on seafood, shrimps, please
send the request email to the following address
info_at_cafef.vn
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In case you need reports on special seafood as
shrimps, pangasius, . please send the request
email to the following address info_at_cafef.vn
www.cafef.vn