The Vietnamese fishing industry is eyeing China as a potentially lucrative export market but according to a local industry spokesman, trading opportunities are hampered by too few Chinese importers being able to pay for Vietnamese seafood by letter of credit.

According to Ho Tho, chairman of the Vietnam Fisheries Association, China is the world's largest exporter of seafood but it still needs to import produce to meet very high local demand. China imported a massive 1.35 million tonnes of seafood in 1999 worth a total of US$1.29 billion.

Thriving exports

Vietnamese seafood exports to China have risen sharply over recent years. In 2000 Vietnam's earnings from exports to China were US$292 or nearly three times the value of comparable exports in 1997 worth US$106 million. The main exports were dried squid, fish, octopus and shrimp.

Ho To however reckons there is more scope for Vietnam's seafood exporters - the largest of which are Sea Product Import-Export Company and the Quang Ninh Sea Product Import-Export Company. He says payment remains the biggest obstacle to seafood exports to China.

Government could help boost trade

Factors restraining Vietnamese exports to China according to Ho Tho include high import taxes, control by the Chinese government over companies allowed to pay in foreign currency and that many importers do not yet pay by L/C.

The Vietnamese industry spokesman has said that to establish a long-standing trade relation, payments will need to be made by L/C, through banks or barter arrangements and has called on the Vietnamese government to assist small-and medium-sized companies to boost export activity in China.