Vietnam exports see growth opportunities

Vietnamese exporters have overcome many challenges to meet their export target in over 16 commodities to achieve an export turnover of over US$1 billion.

Exporters optimistic for the year

According to the World Rubber Association, the demand for rubber in 2011 is expected to reach 11-15 million tons, but the natural rubber output in the world remains less than this figure. With the demand exceeding supply, rubber prices are expected to increase in 2011.

According to Dinh Van Tuong, head of the Viet Nam export- import rubber industry Group, since Nov/Dec of 2010 many enterprises within the group have signed contracts. In Jan 2011, organizations have exported over 80,000 tons.

Since Feb 2011, the group exported an additional 40, 000 tons. Over this period, the rubber price have risen to 100 VND million per ton ($5 000 per ton). This proves that the Viet Nam rubber industry has gradually strengthened its position in the world.

In early 2011, China imported rubber from Viet Nam for car tires and tubes. Seeing this scenario, Vietnam needs to increase rubber exports to China. According to economic experts, the rubber business should take advantage of the market in the first quarter of the year.

Besides rubber, seafood exporters have an advantage, as Viet Nam has more than 969 companies for seafood products and is already exporting to 162 countries in the world. With an established market of quality products, Vietnamese enterprises can easily become the main suppliers to many countries.

Export products have high mark up

Coffee exporters have received orders at US$2,070 – 2,080 per ton for delivery by May 2011. According to the Viet Nam Coffee Association, if the coffee price is US$ 2,000 per ton, the turnover of coffee export could reach US$2 billion this year.

According to Nguyen Duc Thanh, vice chairman of Vietnam cashew association, the cashew price in the world is very high. The cashew export turnover is US$1.4 billion, compared to US$1.1 billion in 2010.

Pepper is also another product fetching a high price in the world market, approximately US$4,600 per ton whereas the price in Viet Nam is VND 90,000 (US$ 4.5) per kg.

Expanding the market is important for export enterprises as well as improving quality and maintaining and protecting their brand name. Despite the challenges ahead, experience and hard work will help Viet Nam exporters to succeed this year.

(Source: http://www.saigon-gpdaily.com.vn/Business/2011/2/89776/)