Nghe An: Finding solutions to support production in difficulties due to the epidemic
(Baonghean) - The Covid-19 pandemic has severely affected the world economy. Nghe An's agricultural and seafood products, textiles, transportation, etc. are no exception. In the context of the complicated Covid-19 pandemic, it requires more attention from the government, localities, and the efforts of businesses and individuals to find opportunities in the challenges.
Difficulties at sea
Normally, each year, the offshore fishing fleet of Quynh Lap commune (Hoang Mai) catches about 30,000 tons of anchovies, of which 25,000 tons of fresh fish (equivalent to 5,000 tons of dried fish) are exported to China, all via unofficial channels. At the peak, the price of anchovies was 26,000 VND/kg, now it is only 17,000 VND/kg.
Not only is there difficulty from China, but according to the current regulations on common fishing areas at sea, fishing vessels over 650 CV face difficulties in maritime traffic. Therefore, in Hoang Mai town, many fishing vessels over 650 CV are also on shore, operating ineffectively. Fishing ports are deserted, seagoing vessels are on shore, and so are frozen warehouses. Many frozen goods owners no longer provide funding for offshore fishing vessels because there are no orders.
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| Fishing boats in Quynh Lap commune are on shore. Photo: Thanh Yen |
Quynh Luu is the district with the largest number of vessels in the province with nearly 1,200, of which there are about more than 700 with a capacity of over 90 CV specializing in offshore fishing. Each year, the total catch of the district reaches more than 74,000 tons of seafood, of which objects such as hairfish, anchovies... are all exported to China. In the district, there are about 50 establishments purchasing, freezing, preserving, processing and exporting seafood, concentrated in the communes of Tien Thuy, Quynh Nghia, Son Hai, Quynh Thuan...
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| Frozen seafood inventory in Quynh Lap commune, Hoang Mai town. Photo: Thanh Yen |
Many agricultural products are at risk of having to be "rescued"
As the most populous market and the world's "big factory", China consumes up to 85% of the world's cassava starch, so when purchasing power from this market slows down, products are inevitably congested.
Cassava starch production and processing in Nghe An is currently one of the industries most heavily affected by the disadvantages of the Chinese market due to the epidemic in this country. Every year, the largest cassava starch processing factory in Anh Son produces 30,000 - 35,000 tons of products, of which 90% is exported and mainly to the Chinese market.
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| Cassava tubers are in large stock at Hoa Son cassava starch processing factory. Photo: Tran Chau |
Not only seafood and tapioca starch, many other products of Nghe An are also facing difficulties such as textiles, pineapple juice, exported fruits, and transportation companies are facing difficulties due to stagnant exports and decreased number of customers.
Mr. Hoang Minh Tuan - Head of Import and Export Management Department of Nghe An Department of Industry and Trade said: In 2019, according to statistics, the export turnover of cassava starch and fruits from Nghe An to China reached 93 million USD, accounting for 34% of the export turnover of goods to China. Since the Covid-19 epidemic, businesses are facing many difficulties. Sugar exports through unofficial channels are also being suspended.
Market research and expansion
Thanh Chuong district has over 4,400 hectares of tea, with an annual output of over 40,000 tons of fresh tea buds and processing about 12,000 tons of dried tea buds. According to Mr. Hoang Phi Hung - Head of the district's Agriculture Department, most of the products are still being exported to Middle Eastern countries through traders and to China through unofficial channels.
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Exporting directly to Middle Eastern markets such as Pakistan and Afghanistan through official channels requires quality products with full labels of origin. Therefore, in addition to registering labels and trademarks, cooperatives in Thanh Chuong also pay great attention to care and use of plant protection drugs according to the correct procedures, ensuring food safety and quality of raw materials. Currently, the basic orders meet the consumption of the cooperative's products.
Faced with the complicated epidemic situation, seafood purchasing, processing and exporting establishments in Quynh Luu are also looking for solutions to circulate goods. Mr. Ho Van Luc - owner of a seafood purchasing, processing and exporting establishment in Tien Thuy commune said: "In the coming time, the establishment will focus on purchasing and processing one-sun-dried fish, drying and preserving, waiting for the Vietnam - China market to stabilize again to sell. At the same time, we will expand exploration and search for partners in some other markets such as Laos and Korea."
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| Anchovies are processed by fishermen in Tien Thuy commune (Quynh Luu) for export to the Chinese market. Photo: Viet Hung |
Regarding peanut products, Mr. Le Manh Hien - Vice Chairman of Dien Chau District People's Committee said: In 2019, Dien Chau produced over 126 tons of grain food, including over 10,000 tons of peanuts, 1,546 tons of sesame and 47,500 tons of seafood. Currently, in addition to directing businesses and people to consolidate and utilize frozen warehouses to increase the storage capacity of products if they cannot be sold, the district will also focus on calling on and encouraging traders in the area to purchase products to both preserve and promote the search for consumption markets with many solutions. The district advocates implementing solutions to promote production according to the value chain, linking production with consumption and export of goods.
For other products such as rice and sugarcane, diversifying products and industries, investing in more packaging and labels, and focusing on the domestic market are good ways to overcome current difficulties.
Promoting industry restructuring
Mr. Nguyen Van De - Director of the Department of Agriculture and Rural Development said: In recent years, Nghe An has gradually promoted linkages along the value chain, creating products with comparative advantages and high competitiveness in the domestic and export markets, etc.
However, the competitiveness of processed agricultural products is still low, penetration into domestic and export markets is difficult, the agricultural consumption market is unstable, still heavily dependent on a few specific markets without effective solutions. The epidemic has had adverse impacts on the production and consumption of agricultural products. However, this is also an opportunity for us to change production and business methods to be more suitable and effective, and find opportunities in challenges and difficulties.
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| Processing traditional fish sauce in Dien Chau. Photo: Hai Vuong |
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| Shrimp production in Dien Chau. Photo: Document |
The State Bank of Nghe An province should take the lead in coordinating with relevant sectors to assess the inventory levels at enterprises (tapioca starch, fresh fruits, textiles, seafood, etc.) to develop support plans (interest rates, credit limits, debt extensions, etc.) for enterprises in the short term.
The province needs to direct the Department of Industry and Trade to coordinate with the Department of Agriculture and Rural Development and relevant sectors to research and develop solutions to find alternative markets for imported and exported products from China to stabilize the market.
Nghe An: Supporting import and export businesses to overcome the Corona epidemic
(Baonghean.vn) - In the first two months of the year, despite the difficult economic situation, Nghe An's export turnover still increased quite well, of which goods reached nearly 122.7 million USD, up 9.3%. In the face of the complicated developments of the Covid-9 epidemic, the province and related sectors are taking solutions to support businesses.
