Shrimp sales to US may slump

It expects increased demand in the US in the second half of 2015 thanks to lower anti-dumping taxes and falling supply from India, Thailand, and Ecuador due to shrimp diseases, rising cost of farming and lower export prices.

However, it said Vietnam is unlikely to benefit because of the dong's strength.

Many other currencies have fallen against the greenback, making their products more attractive, it said.

As a result of the devaluation, shrimp import prices in the US fell 20% in the first half of this year to US$10 per kilogramme.

While economists have been calling for a devaluation of the dong by another 7-10%, the State Bank of Vietnam said it would not weaken the dong any more than the 2% by which it already has this year to protect the country's interests.

Thus, though the prices of Vietnamese exports to the US have declined by US$1.5-2 per kilogramme this year, they remain US$1.5-2 higher than products from competitors like India, Indonesia, and Thailand.

Vietnam's other two major importers, Japan and the EU, have also cut imports by 18.6% and 15.2% respectively and are looking for cheaper products.

Exports to China and the Republic of Korea also fell sharply, with demand in the former market being hit by the recent crash in the stock market, which has caused belt-tightening among the middle class.

By July 15 Vietnam's year-to-date shrimp exports to the US were worth a mere US$284.6 million, or down by more than half year-on-year.

The association said the US, the biggest importer of the country's shrimp products, accounts for 20% of shrimp exports from Vietnam.

Overall shrimp exports were down 28% to US$1.4 billion.