Adapting promptly to changes in the seafood market.
Seafood exports reached $3.47 billion in the first five months of the year, a decrease of 25.9% compared to the same period last year. However, according to the Ministry of Agriculture and Rural Development, this figure is not overly negative, as Vietnam's seafood industry has experienced breakthrough growth in 2022.
Regarding the decline in the export value of seafood – one of the key products in the agricultural sector – Deputy Minister of Agriculture and Rural Development Phung Duc Tien stated that, facing difficulties and challenges in the economy, overall demand has decreased significantly, and many industries have no orders. In many sectors, workers only work a few days a month, affecting their income, thus reducing living and consumption needs. This is considered the main reason for the decline in the export value of Vietnamese seafood.
Deputy Minister of Agriculture and Rural Development Phung Duc Tien acknowledged that while seafood exports have decreased compared to the same period last year, the decline is gradually narrowing. In fact, this figure is not overly negative, as Vietnam's seafood industry has experienced breakthrough growth in 2022.
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Changing market trends
According to information from the Vietnam Association of Seafood Processing and Export (VASEP), many seafood businesses have reported a decline in business results and profits since the beginning of the year, but some products such as dried fish and canned fish have shown considerable growth.
In April 2023 alone, exports of dried seafood increased by 65%, reaching nearly $26 million. For the first four months of the year, this product generated nearly $78 million in revenue, a 33% increase compared to the same period last year.
The largest markets for Vietnamese dried fish are China (56%), Russia (17%), and Malaysia (8%).
In addition, many other markets also increased their imports of dried fish from Vietnam in the first four months of the year. Specifically: Taiwan (China) increased by 45%, Romania by 90%, Australia by 10%, and Lithuania by 61%.
The trends in Vietnam's dried fish exports show that, in an inflationary environment where prices dominate purchasing behavior, consumers have changed their habits. Fresh/live fish products are gradually being replaced by dried and canned goods.
VASEP advises seafood export businesses that, in addition to the pressure to adjust prices to be attractive, they should focus on increasing services for their products to stimulate demand. For example, with fish products, many distributors worldwide are focusing on providing pre-cut, marinated, ready-to-eat or pre-packaged fish with seasonings and cooking instructions…
Focus on the Chinese and Japanese markets.
Mr. Le Ba Anh, Deputy Director of the Department of Quality Management of Agricultural, Forestry and Fishery Products, Ministry of Agriculture and Rural Development, said: "In the future, we need to pay special attention to the Chinese market because we have the advantage of proximity. The Japanese market also has the advantage of proximity and highly trusts Vietnamese shrimp products. These will be two key markets."
On May 31st, at the Vietnam-China Agricultural, Forestry and Fisheries Trade Connection Forum through Yunnan Province, Deputy Minister of Agriculture and Rural Development Tran Thanh Nam also acknowledged the demand for importing seafood from Vietnam from Chinese businesspeople.
Currently, Chinese customs allow seafood import registration through smart platforms on websites; at the same time, they conduct independent sampling for testing, which is unrelated to and does not incur additional costs for import and export businesses.
The testing of seafood products also differs from that of other agricultural products, with very reasonable testing rates. Specifically, for lobster, Chinese customs are testing for eight types of diseases and bacteria, such as intestinal disease, white spot disease, hepatopancreatic disease, etc.
Deputy Minister Phung Duc Tien stated that, given the current situation, it is necessary to restructure the market and expand consumption markets. Along with this, the agricultural sector will strengthen trade promotion with each product category and each market. The Ministry of Agriculture and Rural Development leadership has assigned unit leaders to focus on trade promotion for traditional and potential markets such as the US, China, Japan, and the EU, focusing on Vietnamese products with competitive advantages. Simultaneously, negotiations will be intensified to diversify agricultural products exported through official channels to more markets.
To ensure the achievement of the 2023 fisheries plan targets, the industry will promptly direct aquaculture production in response to weather developments and market demands. At the same time, it will continue to coordinate with localities to strictly implement measures to combat illegal fishing.