Seafood export: Challenging the target of 6.5 billion USD

Right from the beginning of the year, the seafood industry set an export target of 6.4 - 6.5 billion USD - not a very large number but a challenge for the whole industry. Given the numerous difficulties both at home and abroad, this target is not easy to achieve, especially in the context of increasing market barriers for the two main products of shrimp and tra fish.

Surrounded by difficulties

In the first 6 months of 2013, aquatic product output reached about 2.7 million tons; of which aquatic product exploitation was nearly 1.3 million tons, up 3.5%; aquaculture was 1.4 million tons, down 1.7% compared to the same period in 2012. Accordingly, the value of aquatic product production in the first 6 months of 2013 reached more than 83,000 billion VND, up 2.53% compared to the same period last year...

Although some production and aquaculture indicators increased compared to the same period, according to Mr. Bui Duc Quy, Director of the Aquaculture Department, the value of seafood exports did not increase. By the end of the year, the situation will not change much, and seafood production will still face difficulties in capital. Farmers and enterprises find it difficult to access preferential loans from banks because they do not have collateral, leading to many households "hanging" their ponds. Hot weather and lack of fresh water are the main causes of shrimp diseases with a damaged area of ​​nearly 50,000 hectares. Fear of disease and severe lack of capital make farmers worried and reduce production. In addition, fishermen still face obstacles in the process of exploiting seafood in sovereign waters...



In the first 6 months of the year, aquaculture reached 1.4 million tons - Photo: Phan Thanh Cuong

"These restrictions will lead to limited raw materials for seafood processing and export. That is a big challenge for this year's export target," said Mr. Quy.

Domestic difficulties pile up, the export market has added many barriers, making seafood enterprises feel like they are surrounded in misery. After the catfish being sued for dumping, shrimp has fallen into an anti-subsidy lawsuit. Most recently, Mexico has also ordered a ban on shrimp imports from Vietnam, because of fear that diseases on farmed shrimp could spread... Management agencies as well as each enterprise have made every effort to pursue the lawsuits, to save Vietnamese fish and shrimp; but the results have not been good, and may even be worse in the remaining months of 2013.

Ms. Truong Thi Le Khanh, Chairwoman and General Director of Vinh Hoan Corporation, one of nine companies exporting pangasius to the US, said that this market is complicated. Indonesia was not chosen by the US Department of Commerce (DOC) as a replacement country to calculate the price of Vietnamese pangasius, but instead chose Bangladesh, India and the Philippines. According to Ms. Le Khanh, if DOC chooses the Philippines as a replacement country, the tax rate will be higher than Indonesia. This is a big challenge for the Vietnamese pangasius industry.

Need to rearrange

In the last 6 months of the year, the world economy is forecast to not recover, so there are still many difficulties in seafood exports. The tightening of public spending, credit and domestic interest rates will continue to have a major impact on seafood production. Meanwhile, the weather in the last 6 months of the year always has the potential for unusual developments (the appearance of storms, rain, floods, etc.) and the last 6 months of the year is also the time when input material prices (such as electricity, gasoline, etc.) are under a lot of pressure. If these factors occur at the same time, it will make it even more difficult for seafood exporting enterprises to turn around.

According to experts, in the face of existing difficulties, especially for key export products such as shrimp and tra fish, more than ever, authorities as well as businesses themselves need to quickly join hands, step by step resolve difficulties, and make the most of market opportunities to increase export value.

Recently, Mr. Truong Dinh Hoe, General Secretary of VASEP, predicted that seafood exports in 2013 could still reach the target of 6.5 billion USD, an increase of about 300 million USD compared to 2012.

According to Mr. Hoe, although the two main export products, tra fish and shrimp, are facing many difficulties with anti-dumping and anti-subsidy taxes in the US market, the opportunity for seafood exports to increase in value compared to last year is still quite high. The opportunity for seafood exports lies in factors such as lower interest rates, allowing businesses to access cheap capital. "The problem is whether businesses know how to seize the opportunity or not, whether they know how to promote their advantages in the world market or not? That is the key," Mr. Hoe emphasized.

In fact, right from the beginning of the year, when setting the export target of 6.4 - 6.5 billion USD, the seafood industry has proposed specific measures to realize it. It will focus on reviewing and re-planning aquaculture areas, ensuring disease-free farming conditions; continuing to diversify farming objects to meet market demand and minimize risks; promoting the application of VietGAP on a national scale... In addition, it will encourage offshore activities in the form of production teams, exploiting objects with high economic value and good consumption markets; researching and investing in the application of modern equipment technology in preservation and processing to increase product value, reduce loss...

Hopefully, with the above measures, along with the determination of each exporting enterprise, it will be an important driving force to help the seafood industry achieve the expected results.

According to (Vietnam Fisheries) - LC