VINACHEM

Foods prices in Hanoi are increasing due to higher transport fees following the petrol price hike on March 28.

After the ministries of Finance and Industry and Trade raised the fuel price to VND24,580 per litre (USD1.18), vegetable prices in major wholesale markets in Hanoi on April 1 also increased by VND500-3,000 per kg.

The prices at retail markets are even higher than at the wholesale markets.

Ho Thi Nga, a trader in Dich Vong Market said they had to raise the prices because transport fees increased. Furthermore, bad weather damaged fields in the north.

"Some farmers had to harvest fresh vegetable since two or three in the morning, during the rain so they charge a little more." a trader in Hanoi said.

Prices of poultry and eggs also increased. Traders at Dich Vong Market increased their poultry prices by VND3,000-10,000 per kg.

"How can people get through tough times if prices just keep increasing one after another, we just want stable prices." Nguyen Hai Anh, a resident in Thanh Xuan District said with Vietnamplus.

However, the cost of beef, pork and aqua-products remained relatively stable despite the increased transport fees.

Traders said consumers had limited their spending to save costs since the start of recession. "We wouldn’t be able to sell anything if we raised prices too much." said Nguyen Thi Van, a trader in Nghia Tan Market, Cau Giay District.

South Korea’s ethoxyquin standard worries Vietnamese shrimp exporters

Vietnam’s shrimp exporters are concerned by a new South Korean food safety regulations that will test shrimp imports for ethoxyquin for one year.

South Korea’s Animal, Plant and Fisheries Quarantine and Inspection Agency (QIA) said they would impose compulsory testing for Ethoxyquin in Vietnamese shrimp shipments on holding them up to the standard of 0.01 ppm.

The testing will last from January 1 through December 31, 2013.

Last year, South Korea and Australia were regarded as two most favourable markets for Vietnamese shrimp exports, which rose despite a drop in several other major markets.

In 2012, South Korea was Vietnam’s fifth largest shrimp export market, bringing in revenues of USD171.4 million, up 8.8% from the year before. Meanwhile, shrimp exports to other major markets decreased, including those to the EU, which were down 24.5%, as well as the US, down 18.6%.

Many shrimp exporters in Vietnam are worried about increasing difficulties this year, as the country has already faced Ethoxyquin testing imposed by Japan.

According to the General Department of Vietnam Customs, the country took in over USD242.2 million from shrimp exports in the first two months of this year, down 6% from the same period last year.

The US surpassed Japan to take lead in importing Vietnamese shrimp during this two-month period. However, local exporters are aware that shrimp exports to this country would continue to face difficulties due to US anti-dumping measures.

Due to lower demand triggered by economic downturn, the EU fell from third place to become the fourth biggest shrimp importer of Vietnam after China during the period.

Apart from difficulties in the export markets, the Vietnamese shrimp industry is expected to face other challenges, such as unstable supplies. This year there was a mass shrimp die-off in several major breeding areas across the country.