HANOI: The Vietnam Association of Seafood Exporters and Producers (Vasep) has revised down its shrimp export forecast due to poor sales, reports Vietnam net. VASEP is currently guiding for $2.9 billion to come from exports this year, over $1bn lower than last year; $300 million lower than the full-year estimate made by the body in July.
Its final quarter forecasts are similarly bearish. Shrimp shipments are expected to be at $800m — down 20-25% compared to a year ago. If this is true, Vietnam can earn shrimp exports of only $2.9bn, including $573.9m in the first quarter, $716.2m in the second quarter, and $840.8m the third quarter.
Vasep attributed the fall to declining demand in Vietnam’s key export markets and reduced competitiveness of Vietnamese shrimp compared to its rivals. The currencies of India, Indonesia and Ecuador have also weakened more than the dong against the US dollar, exacerbating the situation for Vietnamese exporters.
It’s not the first instance of negative mood music to emanate from Vasep in recent months. Only this week, it predicted the national seafood sector would miss its $8bn revenue target for the year, at the hands of high production costs, inadequate quality and unhealthy competition.
