Ministry officials said the $ 1 billion threshold had been passed in the first seven months of the year, an increase of 43.3 per cent compared with the same period last year. In a fluctuating market, the $1 billion mark was reached two months earlier than in 2000. The average export value in the first quarter of 2001 reached $118.5 million per month compared to $70.5 million last year. Figures for the second quarter were $153.6 million per month compared to last year's $117 million. During the first month of 2001, economic growth slowed down in main markets like Japan and the US. The growth inertia had a considerable impact on seafood exports, making the current figures all the more noteworthy.

In addition, the price of exported seafood decreased substantially at the end of the first quarter and early in the second quarter. At the moment, prices are down 20-30 per cent since the beginning of the year. For example, the price of shrimp has decreased by $3-4 per kilogram, and four-to-six per pound headless black tiger shrimp are down from $26 per kg to $22 per kg. The figure for the larger six-to-eight per pound shrimp has fallen from $25 per kg to $20.9 per kg.

Officials said that there were also considerable changes in market share this year. China has surpassed the EU to become the third biggest importer of Vietnam aqua-products with $106 million worth in the first half, almost tripling last year. The US accounted for 25.3 per cent of market share, a little bit lower than Japan's 26.9 per cent. However, exports to the US increased 69.3 per cent compared to 4.1 per cent to Japan. Officials attributed the success of the industry to the rapid increase of value-added products that were accounting for 30 per cent of total exports. It was also due to efforts made by processors in upgrading technology and securing modern equipment.

Several processing plants have been built with big capacity and modern equipment. More investment has been made in upgrading these plants to meet food hygiene and safety requirements. Sixty-one enterprises have qualified to export products to the EU.

Another reason behind the record was the government policy to allow low-efficiency rice growing areas to be turned over to aquacul-ture.

This year, the area devoted to aquaculture has reached 1 million hectares, almost doubling last year's figure. Therefore, production of shrimp alone during the first six months of 2001 rose to 80,000 tonnes, up 24 per cent against last year.

Changes in export structure have also generated strong growth in the sector. The export value of fish has increased 68 per cent, and the value of other products such as crab, mollusc and mixed fish products has increased 62 per cent.