Exports to EU may surpass US$10 billion in 2008

 The Ministry of Industry and Trade (MoIT) has predicted that Viet Nam’s export to the European Union (EU) will reach US$10.4 billion in 2008, a year-on-year rise of 23.5 percent. High increases are forecast for textiles and garments, footwear, seafood, wooden products and coffee. In particular, footwear is expected to remain the country’s major staple with export revenues estimated at US$2.7 billion. The EU is currently the world’s second largest importer of Viet Nam’s footwear after the US. It bought US$2.1 billion worth of footwear from Viet Nam in 2007, representing 7.2 percent of its total import value of the item. In recent years, the EU’s footwear import reaches US$29 billion each year. Although textiles and garments are expected to bring home around US$1.65 billion, it will be considerably affected by the EU’s removal of quota for China’s textiles and garments this year. The EU is also the biggest consumer of Vietnamese coffee, accounting for around half of the country’s coffee export value. The nation’s coffee export to the EU is forecast to fetch US$820 million this year, a slight reduction compared with 2007 due to the decrease in domestic production output. Meanwhile, seafood export to the EU is expected to reach US$1.15 billion, a year-on-year rise of 25 percent, and wooden products, around US$780 million, a year-on-year surge of 30 percent. To fully tap the EU market’s potential, the MoIT advised export businesses to strengthen their foothold in Germany, the UK , France , the Netherlands and Belgium while seeking more outlets in new EU markets like the Czech Republic , Hungary and Poland . In 2007, Viet Nam earned US$8.5 billion from exports to the EU, a year-on-year rise of 19 percent, accounting for 18 percent of the country’s total trade turnover.

(Source vneconomy)

Coffee fetches record prices

Domestic coffee prices fetched a new record of 42,000 VND per kilo (2.65 USD), up by 2,000 VND in just one week, according to the Dak Lak Tourism and Trade Department. Last week’s price of 40,000 VND (2.50 USD) was the highest in 10 years, said experts. Traders said that the latest increase was caused by the country’s crop failure and rising petroleum prices. However, the price is expected to increase to 45,000-50,000 VND per kilo in the near future. With an average yield of three tonnes of coffee per hectare, farmers are earning 50-70 million VND (3,100-4,400 USD) per hectare. According to the Ministry of Agriculture and Rural Development, the country’s coffee output this year is estimated to reach 17.4 million bags (a bag is equivalent to 60 kilos), an increase of 17 percent over the previous crop, but still 20-30 percent short of demand. According to a forecast by the International Coffee Organisation (ICO) for the 2007-08 crop, Brazil’s coffee output only reach about 33.1 million bags, a decline of 22 percent over the previous crop. “The coffee crop failure of many countries in the southern hemisphere makes Viet Nam the largest producer in the northern hemisphere”, Doan Trieu Nhan, a consultant at the Viet Nam Coffee Association said. The output falls by the two largest coffee exporters immediately impacted on world coffee prices. Robusta coffee price in London rose by 5.5 percent to 2,320 USD per tonne. The price surged by 5.8 percent to 3,380 USD per tonne in the US . The domestic export coffee price has increased between 8 to 11 percent to 2,080-2,275 USD per tonne. Viet Nam is expected to export 800,000 tonnes of coffee this year, a fall of 300,000 tonnes from last year. Last year, the country exported 1.2 million tonnes, bringing total revenue of 1.8 billion USD, a 22 percent increase in volume and 50 percent rise in value over the previous year. (VNA)

Can Tho exports tra catfish to Mexico

The Mekong Delta city of Can Tho has exported more than 324,000 USD worth of tra catfish to Mexico , a new market in Central America . The 133-tonne export has helped raise the city’s seafood export output in the first two months of this year to 9,000 tonnes. This takes earnings to 43 million USD, representing a year-on-year increase of 29 percent. Due to difficulties in shrimp exports to the US , local seafood possessors have expanded their markets to Central and South America, Europe, Asia and Oceania . More than 3,000 tonnes of shrimp and catfish have been exported to Belgium , Brazil , Canada , China , Hong Kong , Japan , the Republic of Korea , Malaysia , Portugal , Singapore and Thailand.

 (Source VNA)

Nation targets 15 billion USD in agricultural exports

The agricultural sector targets 15 billion USD in export value by 2010, according to a report of the Ministry of Agriculture and Rural Development. The sector aims to achieve a growth rate of 4-4.5 percent a year in agricultural production, a 3.5 percent contribution to the country’s GDP and an 8 percent growth rate in the rural economy. The export revenue from agro-forestry products and seafood this year reached 12 billion USD. Five top export items with exports earnings of more than 1 billion USD include seafood, rice, coffee, rubber and wooden products. Aside from traditional markets, almost all export staples found new outlet during the past year. The Ministry of Agriculture and Rural Development said that seafood exports have never been as bright as in 2007 with a value of 3.75 billion USD, 400 million USD more than last year, with the number of enterprises qualified to export products to the EU, the US and Japan doubling. The fisheries sector has constantly diversified its products to meet the increasing demands of those markets. Rubber latex, mainly exported to China for many years, decreased by 41 percent in 2007. Meanwhile, rubber exports to the Republic of Korea , Taiwan , Malaysia and Germany saw remarkable increases. Rubber exported to Malaysia tripled 2006 volumes and the market was considered strategic for Vietnamese rubber. In an effort to take advantage of Viet Nam ’s integration into the global economy, the agricultural sector will focus on promoting export farm produce, improving product quality and complying with food safety and sanitation requirements set by World Trade Organisation (WTO) regulations. Minister of Agriculture and Rural Development Cao Duc Phat said that in 2008 the sector would step up quality control, safety and sanitation for agricultural and forestry products, as well as seafood and agricultural materials. According to the ministry, the agricultural sector will also pay special attention to production and export of products with high value, such as coffee, rice and wood products. The sector will continue upgrading technology while expanding export markets for products that use locally available materials such as rubber products and processed foods. Application of bio-technology in agricultural production and increased automation would also be given priority investment, the ministry added. In another effort to develop agriculture, the ministry will issue an incentive policy involving tax and land to encourage both domestic and foreign investment. The ministry admitted that though foreign direct investment flows into the country increased sharply, reaching 20.3 billion USD in 2007, foreign investment in agriculture was still modest, making up just 10.6 percent in the number of projects and 6.5 percent in capital. It aims to attract foreign direct investment and Official Development Assistance to build agricultural facilities that can help create high-yield crop and animal hybrids, and to upgrade processing and post-harvest technology.

(Source vneconomy)

EU gives access to 25 more seafood exporters

VietNamNet Bridge – The European Commission (EC) has recognized 25 more Vietnamese seafood companies as meeting requirements to export products to the EU. The newly recognized seafood companies will be able to export to the EU as of January 31, 2008.

With the new decision, the total number of Vietnamese seafood companies eligible to export to the EU has reached 269. The 25 newly recognized companies include two canned food processors and 23 frozen product exporters. Problems with food hygiene and antibiotic residue were the main reasons why the EU had previously rejected seafood imports from Vietnam. In 2007, the EC’s Health and Consumer Protection Directorate sent two inspection delegations to Vietnam to examine the implementation of the program on controlling toxic chemical substances in aquaculture (January 2007), and examine the control over seafood farming and processing sanitation (September 2007). The EC’s inspection tours led to the commission’s decision that actions taken by the Vietnamese side to ensure the safety and sanitation of seafood products have made Vietnam’s seafood eligible for export to the EU. With more than 500mil consumers, the EU remains one of Vietnam’s biggest seafood markets, which consumes 39% of total exports. In 2007, Vietnam exported 274,700 tons of seafood to the EU, bringing in $912mil, an increase of 29% over the previous year. Commercial affair divisions under Vietnamese embassies in EU countries have forecast that the EU’s consumption of seafood products will increase by 5-8% this year, which will make the seafood price increase by 5-7%. Higher demand will bring more opportunities to Vietnamese exporters. However, analysts warn that Vietnam will have to compete with North European countries, Russia, Ecuador, China, Thailand, India and Canada for EU market share. While the supply of shrimp to other parts of the world has been decreasing, the supply to the EU did not see any considerable decrease. Vietnam’s frozen shrimp products now hold some 4% of the EU market share. It is expected that Vietnam’s seafood export turnover will reach $1bil in 2008, and the EU will remain Vietnam’s biggest market. The EU is also a part of the world that imports most of the global supply of seafood. In 2006, the 25 members of the EU consumed $38.9bil worth of seafood, an increase of 10.7% compared to 2005.

Handicrafts find more ways into Japanese hearts

While one third of revenue from Vietnam's time arts and handicraft exports are from markets in Japan, there is great potential to increase sales to Japan even further, said Deputy Minister of lndustry and Trade Le Danh Vinh.

Fine arts and handicrafts were one of the 10 leading potential export items for Vietnam, with these exports heading to 136 countries and territories and a growth rate of over 20% a year, said Vinh. The country is home to 2,000 craft villages, 1.4mil craft-producing households and about 1,000 enterprises in production, import and export of the products. "In addition to the EU and US, Japan is a market of enormous potential that handicraft producers and exporters hope to further explore," said vice chairman of the Viet Nam Association of Craft Villages (Vicrafts) Luu Duy Dan. "Due to lack of experience and market information, we have not fully explored the potential of this market" Dan added. Other manufacturers in the sector tell the same story. "Our company failed to export directly to Japan as we lack information on this market and have yet to hold face to face meetings with Japanese partners," said Kim Son Handicraft Import Export JSC director Nguyen Van Quynh. "As a small-sized enterprise, we need financial support, effective information supply and the chance to meet with Japanese firms to seek co-operation." Ken Akrawa, a senior expert from the Japan External Trade Organisation (JETRO), said handicraft producers needed to continue to study Japanese customs, consumption habits, market demand and distribution systems in order to maximise business chances in Japan. They should also pay attention to ensuring delivery deadlines and product quality and complying with import regulations. He added that Vietnamese enterprises should take advantage of information resources from trade promotion agencies like Jetro, the Viet Nam Chamber of Commerce and Industry and Viet Nam Trade Promotion Agency in order to have up-to-date information on the Japanese market. Vietnam exports an average of US$54mil worth of handicraft and fine art products to Japan a year.

(Source: Vietnamnet)

Find Vietnam handicrafts products.

Garment, textile industry sets high targets

  The garment making and textile sector has expected to increase its yearly export revenue by more than 23 percent to 9.5 billion USD in 2008. The US and Japan are predicted to be still the sector’s largest markets with their imports estimated at 1.8 billion USD and 800 million USD, respectively. However, President of the Viet Nam Apparel and Textile Association Le Quoc An pointed out major challenges to the sector, such as supplies of raw materials largely dependent on imports, a shortage of workforce, price hike and especially an increasingly tough competition on the global market. An said the EU’s lifting of quotas for China from 2008 will drive Vietnamese businesses to a tougher position. Other challenges come from the Japanese market, which has reduced import tariffs to zero for products from six Southeast Asian countries - Singapore, Malaysia, the Philippines, Indonesia, Brunei and Thailand, while continuing levy 10 percent on products made in Vietnam. Risks from the US market, which makes up 55 percent of Vietnam’s export revenues, remain as it continue applying the anti-dumping monitoring mechanism against Vietnamese garments and textiles. “Local garment and textile businesses should set up close partnerships with leading US importers and not sign low-valued contracts as such orders will impact the national average prices and prompt the US to file anti-dumping law suits,” he warned. To this regard, Tran Van Pho, CEO of the Hoa Tho Joint Stock Company, which has shipped almost a-third of its exports to the US, said his company will increase exports to the largest world economy and focus on products of high values so as to avoid sales of products from being labeled as dumping. The Viet Nam Apparel and Textiles Group has asked the Government and relevant agencies to take firm measures against trade barriers and cope with dumping control mechanisms. It also proposed for further investments in infrastructure, speeding up administrative reforms and intensifying the promotion of trade and the industry’s image. For its part, the industrial association has called for speeding up negotiations with Japan on a free trade agreement, emphasizing it as a key measure to expand shares on this market. The garments making and textiles sector recorded a growth rate of 31 percent with gross revenue estimated at 7.8 billion USD in 2007. The US was the largest market with 4.5 billion USD, followed by the EU and Japan.

Exports to US projected to rise 28 percent

Viet Nam ’s exports to the US is expected to reach 13.1 billion USD in 2008, an increase of 28 percent over 2007, according to the Ministry of Industry and Trade. The ministry said Viet Nam ’s revenue from exports to the US increased by 39 percent this year to 10.2 billion USD. Trade officials attributed 2007’s growth rate to a spike in the export value of high growth export items such as clothing, seafood, wood products and coffee. To reach its target of 13.1 billion USD in exports to the US in 2008, Viet Nam will still depend on those products, as well as footwear. The garment sector currently takes up the lion’s share of Viet Nam ’s exports, with a value of 4.4 billion USD. Next year, Viet Nam ’s garment exports to the US are likely to reach 5.4 billion USD, a rise of 25.6 percent. The US is now Viet Nam ’s biggest importer of garments, which account for 55 percent of Viet Nam ’s total exports to US market. However, Viet Nam ’s garment industry still faces challenges due to American policies monitoring Vietnamese garments until the end of 2008. The Ministry of Industry and Trade and the Viet Nam Association of Textile and Apparels have consistently opposed the inspection policy and proposed the US ease the monitoring of Vietnamese garments to help local garment enterprises develop steadily. Viet Nam ’s footwear exports to the US hit the 900 million USD mark in 2007, a 12 percent increase over 2006. The footwear industry set the target of 1.1 billion USD in exports for 2008, a 22 percent increase over 2007. If that goal is reached, Viet Nam will account for more than 5 percent of total footwear imports by the US . Viet Nam is also planning to boost its export of wood products to the US in the coming year as a result of cheap labour and high skill, industry insiders said. The lumber processing and wood products industries aim to export 1.1 billion USD of their goods in 2008, a 23.6 percent upswing from this year. The seafood industry hopes to continue tapping the US market next year with a 14.9 percent increase over 2007, bringing its export total to 850 million USD. In 2008, Viet Nam ’s coffee industry anticipates shipping 125,000 tonnes of coffee to the US , with an export value of 200 million USD, the same as 2007. The US is the world biggest coffee importer. New items such as shoulder bags, purses, suitcases, hats and umbrellas also promise another export windfall. Viet Nam hopes to boost exports of these items to 270 million USD in 2008, up 31 percent from 2007.

(Source: vneconomy)

VnExporters.com, a trade portal covering Vietnam Exporters, Suppliers, Manufacturers, Producers, Vietnam E-Commerce, Business opportunities in Vietnam, Selling Offers, B2B Marketplace, Vietnam Sellers, Trade Leads,Vietnam companies directory, Products catalogs. VnExporters.com make importers & exporters business activities easy.

This website is under construction.