VietNamNet
Bridge – Though seafood, cashew nut and
rice exports met difficulties in the first quarter of 2012, exporters’
associations still hope the situation would be better in the time to come.
Exports
on the decrease
Truong Dinh Hoe, Secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP), said that the target of exporting 6.5 billion dollars worth of seafood products in 2012 may be unattainable.
However, Hoe said that it’s still too early to say about the export turnover, and that VASEP would only release official forecasts about the export performance in 2012.
“We need to wait some more time to get clearer information about the interest rates, capital sources, market demand and material supply. Only by that time, will we have necessary grounds to adjust the export targets,” Hoe said.
He said that in the first quarter of 2012, the demand from loyal markets decreased sharply in comparison with the same period of the last year. In 2011, the tra fish export price to the US was four dollars a kilo, but in the first quarter of 2012, exporters had to sell products at lower prices.
The shrimp export price has also been on the decrease. Ho Quoc Luc, General Director of Fimex Vietnam, said that the export price was 14 dollars per kilo in 2011, but has dropped to 12 dollars.
“This means that you need to export more in 2012 to obtain the same turnover as 2011,” Luc said. “However, this seems to be a difficult task for exporters, who are facing the serious material shortage.
Cashew nut exporters are also facing big difficulties. There has been no trade deal between domestic cashew companies and the importers from Europe and the US.
The US now consumes 50 percent of the cashew nut exports, while 35 percent of exports go to Europe and other markets. Therefore, once the US and Europe stop buying, exporters immediately have stopped collect raw materials. As a result, the raw material price has dropped from 20,000 dong per kilo in early 2012 to 17,000 dong.
As there are very few buyers, farmers have to store cashew nut materials. Meanwhile, they cannot sell for money to pay bank debts.
Market conditions still unpredictable
Both VASEP and the Vietnam Cashew Association (Vinacas) have said that it’s impossible to predict what would come in the upcoming months.
“With the current circumstances, no one can say for sure about the purchasing power on the market in the next some months,” Hoe said.
Vinacas’s Secretary General Dang Hoang Giang has also said that the association still does not have necessary data to predict the export turnover in 2012. “We still need to analyze the market information before giving forecasts,” GIang said.
Chair of the Vietnam Coffee and Cocoa Association Luong Van Tu has noted that the coffee market, like other farm produce markets, still do not truly reflect the demand. In general, the forecasts given by some organizations mainly serve the buyers.
In late 2011, some institutions forecast that the coffee prices would decrease, since Vietnam had a bumper crop, while the world’s demand was low. This made people think that Vietnam’s export prices would drop to 1500 dollars per ton. Meanwhile, in fact, the coffee price then rose to 2000 dollars per ton just after one week.
In 2011, Vietnam earned 3.2 billion dollars worth of rubber exports. In the first quarter of 2012, Vietnam exported 223,000 tons, an increase of 38 percent in quantity, but a decrease of 8 percent in value if compared with the same period of 2011.
“It’s still early to think of adjusting the export targets,” said Tran Thi Thuy Hoa, Secretary General of the Vietnam Rubber Association.
Source: TBKTSG
Truong Dinh Hoe, Secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP), said that the target of exporting 6.5 billion dollars worth of seafood products in 2012 may be unattainable.
However, Hoe said that it’s still too early to say about the export turnover, and that VASEP would only release official forecasts about the export performance in 2012.
“We need to wait some more time to get clearer information about the interest rates, capital sources, market demand and material supply. Only by that time, will we have necessary grounds to adjust the export targets,” Hoe said.
He said that in the first quarter of 2012, the demand from loyal markets decreased sharply in comparison with the same period of the last year. In 2011, the tra fish export price to the US was four dollars a kilo, but in the first quarter of 2012, exporters had to sell products at lower prices.
The shrimp export price has also been on the decrease. Ho Quoc Luc, General Director of Fimex Vietnam, said that the export price was 14 dollars per kilo in 2011, but has dropped to 12 dollars.
“This means that you need to export more in 2012 to obtain the same turnover as 2011,” Luc said. “However, this seems to be a difficult task for exporters, who are facing the serious material shortage.
Cashew nut exporters are also facing big difficulties. There has been no trade deal between domestic cashew companies and the importers from Europe and the US.
The US now consumes 50 percent of the cashew nut exports, while 35 percent of exports go to Europe and other markets. Therefore, once the US and Europe stop buying, exporters immediately have stopped collect raw materials. As a result, the raw material price has dropped from 20,000 dong per kilo in early 2012 to 17,000 dong.
As there are very few buyers, farmers have to store cashew nut materials. Meanwhile, they cannot sell for money to pay bank debts.
Market conditions still unpredictable
Both VASEP and the Vietnam Cashew Association (Vinacas) have said that it’s impossible to predict what would come in the upcoming months.
“With the current circumstances, no one can say for sure about the purchasing power on the market in the next some months,” Hoe said.
Vinacas’s Secretary General Dang Hoang Giang has also said that the association still does not have necessary data to predict the export turnover in 2012. “We still need to analyze the market information before giving forecasts,” GIang said.
Chair of the Vietnam Coffee and Cocoa Association Luong Van Tu has noted that the coffee market, like other farm produce markets, still do not truly reflect the demand. In general, the forecasts given by some organizations mainly serve the buyers.
In late 2011, some institutions forecast that the coffee prices would decrease, since Vietnam had a bumper crop, while the world’s demand was low. This made people think that Vietnam’s export prices would drop to 1500 dollars per ton. Meanwhile, in fact, the coffee price then rose to 2000 dollars per ton just after one week.
In 2011, Vietnam earned 3.2 billion dollars worth of rubber exports. In the first quarter of 2012, Vietnam exported 223,000 tons, an increase of 38 percent in quantity, but a decrease of 8 percent in value if compared with the same period of 2011.
“It’s still early to think of adjusting the export targets,” said Tran Thi Thuy Hoa, Secretary General of the Vietnam Rubber Association.
Source: TBKTSG
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