As if Vietnamese seafood exporters didn't already have enough problems, a weak yen may add to them this year, according to Vietnam Seafood News.
Nguyen Huu Thanh, director of Vietfoods in Can Tho, specializing in shrimp exports to Japan, has predicted that depreciation of the Japanese currency will be detrimental to exports in 2013.
"The government of Japan is seeking to depreciate its currency. In my opinion, the yen in the coming time will likely depreciate to the rate of 90 yen to the US dollar. This means Vietnamese products will be more expensive. Japanese will cut down consumption or ask suppliers for discounts," he said.
The Japanese yen firmed slightly against the U.S. dollar last week, but it still remained at a 29-month low, at 87.26 yen to the dollar. In 2012, the greenback appreciated 12.8% against the yen, the highest level since 2005, while Vietnam's dong has been closely pegged to the dollar. The appreciation was sharp in the
final months of the year.
Vietnamese shrimp prices are now $2.3 per kilogram higher than the same products from Thailand and India, which will put more pressure on local shrimp exporters, Thanh added. But the reason for rising production costs in Vietnam no longer originates at factories, Thanh added.
"The reason for higher production costs of Vietnamese shrimp comes from the stage of farming, not from processing plants. The planning for a standardized shrimp farming zone has been mentioned for years, yet there has been a modest improvement," he said.
