(VEN) - IIn 2011, although the world market faces fluctuation, it will create good opportunity forVietnam's key export industries such as agricultural products, seafood, and textiles and garments to increase export value.
The Vietnam Food Association (VFA) reported that in the first two months of 2011, VFA members have exported nearly 1.2 million tonnes of rice and an additional 500 tonnes to 600 tonnes of rice will be exported in March. In total, 1.8 million tonnes of rice will be exported in the first quarter of this year. There are optimistic signs regarding rice exports in 2011 due to the world concern over food scarcity in the circumstance of increasing prices of agriculture products. In the mean time, Vietnam rice prices are lower than Thailand and Pakistan giving it a competitive advantage. To take this advantage, beside signed contracts with Indonesia and Bangladesh, VFA will strengthen negotiation with the Philippines and expand export markets to Cuba, Iraq and Malaysia. VFA will also assign 60 enterprises to collect 1 million tonne of rice from March 1st to the middle of April based on market prices and prioritized loan with appropriate interest rate. This movement will help VFA and enterprises take the initiative in rice export.
In 2011, rubber exports will also see positive development. According to the International Rubber Association, world rubber demand in 2011 will reach 11.15 million tonnes compared to 10.97 million tonnes of natural rubber output. Therefore, local rubber prices will increase because of a shortage of supply.
Reality shows that since early 2011, Vietnam's rubber prices have increased and reached US$5,000 per tonne. In the first quarter of this year, China has strengthened rubber purchases in Vietnam to concentrate on its production of automobile and motorcycle bodies. Market scarcity will enable Vietnam to increase its value in this year.
Meanwhile, the Vietnam Coffee and Cocoa Association (VICOFA) revealed that the coffee market will fluctuate due do dry weather threatening the output of Brazil, Colombia, Indonesia and Vietnam. As a result, demand will exceed supply. Current coffee prices stand at US$2,000 per tonne. Coffee export value will reach US$2 billion if the prices remain at US$2,000 per tonne. In the first month of 2011, Vietnam exported nearly 100,000 tonnes. Coffee prices in forwarding contracts range from US$2,070 to US$2,080 per tonne in May 2011.
According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Seafood export value in 2011 will stand at US$5 billion. With 969 members, Vietnamese seafood ranks 162 in the world market. In 2010, Vietnam seafood exports to the ten largest imported markets grew from 10 to 15 percent compared to 2009 accounting 68 percent of its total revenue with US$3.4 billion. Of this, the United States ranks first with US$971 million (equal to 19.3 percent) and followed by Japan with US$897 million (equal to 17.8 percent). Despite difficulties in the world market, seafood demand will continue to grow sharply together with a drop of seafood supplies in several countries creating an advantage for Vietnam seafood to maintain its export value of US$5billion.
In terms of garments and textiles, Vu Duc Giang, Director Board of the Vietnam National Textile Garment Group (Vinatex) said that due to great difficulties in 2010 caused by increased input material prices and high interest rates, the textiles and garments sector grew higher percentage compared to the same period in 2009. Export value totaled US$11.2 billion in 2010, up 23.2 percent compared to 2009. The growth of textile and garment sector has been attributed to the world recovery after crisis and the movement of orders from China to Vietnam. As a result, numerous Vietnamese enterprises have signed contracts until the end of the quarter two in 2011. Some major enterprises have contracts until the end of quarter three and four. Processing prices in contracts have increased from 10 to 15 percent compared to 2010. The textile and garment export value is estimated to grow from US$12.7 billion to US$13 billion in 2011.
Diep Thanh Kiet, Vice President of the Vietnam Leather and Footwear Association said that Vietnamese footwear export value reached US$5.1 billion in 2010. It only followed textile and garment sector and attained high export growth of 25 percent. Experts estimated that European Union will end the anti-dumping duty in April. Regarding the United States, Vietnam may enjoy tax preferences, giving the country the opportunity to explore and expand this market. Meanwhile, the ASEAN market is increasingly open to the Vietnamese footwear market. In addition, the sector enjoys great advantages provided by Japan's taxation policy. In the near future, China will open its door to consumer goods. The adoption of Decision 6209/QD9-BCT by the Ministry and Industry and Trade on the Master Plan of Vietnam Footwear Development towards 2020, with a vision to 2025 has created momentum for the sector' development.
The State Bank of Vietnam recently adjusted the US dollar-Vietnam Dong exchange rate to 9.3 percent which will have a positive effect for agro-forestry-fishery products to gain their export value quota in 2011. However, according to experts, enterprises in these sectors should pay more attention to increasing quality, protecting their brand name and reducing raw export/ processing or in the other words, increasing high quality and technology export products so that they can make the most of cheaper prices and other advantages in 2011./.
