Shrimp competition

Vietnamese tiger shrimp exporters will face fierce competition from white leg shrimp producers from China and Thailand, according to Tran Thien Hai, President of Minh Hai Aqua-Products Joint Stock Company.

Hai said while most shrimp producers in Vietnam are still keen on tiger shrimp breeding, international consumers will turn to white leg shrimps depending on the price.

“The quality of the two breeds is almost equal, so consumers will choose whichever is cheaper,” said Hai.

Hai suggested Vietnamese agriculture authorities should expand white leg shrimp breeding instead of discouraging it, as they are now doing for fear of its possible harmful effects on the environment.

“Authorities should conduct research on the environmental impact of white leg shrimp breeding so that shrimp producers know the feasibility of switching breeds should the fiscal need arise,” said Hai.

Yet, despite the increased international competition, Hai said Vietnamese shrimp producers were doing well.

Minh Hai Joint Stock in particular has shipped US$252,000 worth of shrimp to its American partners and signed an important long-term deal with a new importer from the US.

Textile satisfaction

Most members of the Vietnam Textile and Apparel Association have enough export orders to keep themselves busy in the first quarter of 2008.

Major textile companies like Viet Tien, Nha Be, Saigon 2, Saigon 3 and Phong Phu are currently carrying out contracts worth tens of millions of dollars.

Sai Gon 3, for instance, will be exporting $20 million worth of jeans and kaki trousers to the American and Japanese markets.

Export order size increased by 15 percent, and the price per unit increased 10 percent from the same period last year.

Vice Chairman of the Vietnam Textile Association, Pham Xuan Hong, said that the textile export target for 2008 is $9.5 billion.

The growth seen in the first quarter will likely propel further growth later on in the year.

A major challenge according to industry experts is labor stability.

Experts say that if textile businesses can offer rewarding salaries and benefit packages for employees they will do remarkably well this year.

Leather worries

Vice Chairman of the Vietnam Leather and Footwear Association, Nguyen Duc Tuan, said with at least20 member businesses having signed sub par contracts for the first quarter of 2008, there was little hope that the industry would hit its targeted growth rate of 10 percent with $4.5 billion in export revenues for the year.

Leather and footwear businesses’ chief concern, Tuan said, was not a low volume of orders as much as a shortage of workers.

“Businesses need to solve the labor discontent caused by employees’ disagreements over salaries and benefits,” Tuan said.

Rice potential

With rice demand exceeding supply, Vietnamese rice producers will continue to export a great deal of rice at stable and high prices, said the Vietnam Food Association’s Secretary, General Nguyen Thi Nguyet.

Nguyet said Vietnamese rice producers had recently won contracts to supply 410,000 out of a total volume of 450,000 metric tons of long grain white rice put up for bids at a recent bidding by the Philippines National Food Authority.

“Compared to previous years, this year’s bids, which averaged $400 a metric ton, were an appealing price,” said Nguyet.

At the end of January, Vietnamese rice producers will continue to bid for contracts to supply another 500,000 metric tons for the Philippines, according to Nguyet.

Nguyet estimates Vietnam will maintain its 2007 export level of 4.5 million metric tons in 2008.

“There will be no shortage of market for Vietnamese rice,” said Nguyet.

Cable boom

Thinh Phat Electric Wire and Cable Company’s president, Vo Tan Thinh, said the electric cable and wire industry set a particularly high goal of exporting $1.3billion worth of products this year.

Thinh said this goal is realistic considering that many businesses are increasing production just to meet export orders.

Thinh Phat will export around $15 million worth of products in the first quarter of 2008, a 15 percent increase compared to the same period last year.

Source: Tuoi Tre