Exports face ending year on a low
Vietnam raked in an estimated $2.2 billion from export of agricultural, forest items and seafood in October 2011, bringing the country’s total export value to $20.8 billion in the year ending October, surging 34.5 per cent on-year, according to the Ministry of Agriculture and Rural Development.
Of them, key export items reaped an estimated $11.6 billion in the export value, a 45 per cent jump.
Despite these upbeat figures, a number of factors have bothered agricultural product exporters.
First, material prices rose sharply with many imported items such as fertilisers and cattle feed surging 20-25 per cent in prices against the same period in 2010.
Capital scarcity is another hurdle. According to Vietnam Coffee-Cocoa Association chairman Luong Van Tu, firms were anxious about where to source capital though some banks have pledged to lend.
Cashew firms reportedly just proposed banks extend loan repayment deadlines to avoid products being sold at low prices to procure money.
However, new state regulations have also given firms a headache.
For example, seafood firms have to import some materials such as food additives, sauce, powder and wine to have their products meet export order requirements, according to Vietnam Association of Seafood Exporters and Producers’ (VASEP) deputy general secretary Nguyen Hoai Nam.
However, scores of material import shipments got stuck at ports due to the Law on Food Safety. Accordingly, from July 1, 2011 import materials were put under the management of not only the Ministry of Health (MoH) but different state agencies, making firms confused where to go to settle import shipment procedures.
In search of a remedy, VASEP proposed the MoH and competent state agencies to green-light import of food items available in the former list during the time waiting for guiding decrees from relevant bodies.
From January-October, seafood exports brought the country around $5 billion. Particularly, exports to US market rose 27.7 per cent, to South Korea up 38.1 per cent, to China 47.5 per cent and to Italy 42.1 per cent.
Rice exports were also 11.6 per cent higher in volume and 20.3 per cent higher in value reaching $3.3 billion which already exceeded full-year set target. Rice exports sharply rose in almost markets such as a nearly triple jump in the Indonesian market, a five-fold increase in the Senegal market and a triple jump in the Chinese market in value terms against the same period in 2010.
Coffee exports came to approximately $2.3 billion, surging 6 per cent in volume and 60.6 per cent in value against 2010. Rubber exports generated $2.6 billion, up 57 per cent in value while the export prices augmented over 56 per cent against the same period in 2010.
Similarly, exports of forest items and wooden furniture brought in around $3.4 billion during January-October, up 16.2 per cent. Cashews exports, despite sliding 8 per cent in volume, surged 36.5 per cent in value since cashew export prices was 48 per cent up.
The agricultural sector hopes it to set a new record to hit $22-$24 billion in total export value in 2011 against over $19 billion in 2010.
