Many Vietnamese seafood companies have reported poor performance in major markets in the US and the EU.
One such firm, Sao Ta Foods JSC, an affiliate of The PAN Group JSC claimed that it barely made a profit in the EU and could not compete with rivals in the US.
The reasons are due to unfavorable exchange rate between the Vietnamese Dong with the Euro as well as high shipping costs apart from lower demand due to inflationary pressure.
Vietnamese seafood exporters also face competition from countries like Ecuador and India which have better geographical locations and closer to their export markets in the US and Europe respectively.
In addition, Vietnamese shrimp cannot compete in the segments of dried shrimp and medium-level processed shrimp.
The only bright star is the Japanese market for the Vietnamese seafood exporters due to the lower shipping costs.
