VIETNAM, July 23 –
HÀ NỘI — According to the Vietnamese Association of Seafood Exporters and Producers (VASEP), the state should have policies to encourage the import of seafood products for processing for export, as factories processing lack raw materials.
In an official dispatch to the Ministry of Planning and Investment, VASEP said that after 12 fuel price hikes since the start of the year, 40-50% of fishing vessels have now ceased operations.
Meanwhile, enterprises all need to expand aquaculture regions, which provide 70% of raw materials for export processing, to increase the supply of such material.
However, at present, localities are becoming urbanized, so changing land use planning for production is a challenge for seafood companies and farmers.
These lead to a decrease of 70 to 80% of incoming materials in processing plants compared to before.
Therefore, based on the Fisheries Development Strategy to 2030 endorsed by the Prime Minister in 2021, VASEP has proposed the government to issue regulations and policies to encourage the import of aquatic materials for processing of export products.
This will help Việt Nam achieve its goal of becoming one of the largest seafood processors in the world.
Over the past 10 years, the import of clean and legal raw materials to Việt Nam has increased to meet the growing demand for seafood from the global market, according to VASEP.
VASEP said policies to encourage the import of aquatic materials for processing into export products are still lacking and import procedures still face many obstacles.
In addition, VASEP believes that it is necessary to accelerate the modification of the land law. Among which, the amendment should focus on issues of land accumulation, land use regulation and land use planning. This would help the fisheries sector to develop suitable concentrated agricultural regions.
Meanwhile, governments and localities also need policies to develop and expand aquaculture regions.
VASEP also said that another challenge was the obstacles in the procedures for certifying the origin of the fish caught.
According to VASEP, the COVID-19 pandemic has gradually stabilized, so the global import demand for shrimp has increased again.
Việt Nam’s shrimp exports in 2022 are expected to grow well due to the benefits of Free Trade Agreements (FTAs), ensuring the stability of commercial shrimp farming and processing.
Meanwhile, EU food prices are expected to increase by the end of 2022. This will be a good opportunity for Việt Nam pangasius companies to come back to the market after many years of pangasius exports. of Việt Nam affected by the pandemic.
Việt Nam’s pangasius exports to major markets currently have growth potential. A growing and stable consumer demand can help maintain the volume of fish purchased at the current level.
According to Nguyễn Hoài Nam, Deputy Secretary General of VASEP, seafood exports in the first six months of the year have increased, but many unexpected factors are still threatening the seafood industry in the second half.
Aside from the issue of freight and supply chain disruption due to the Russian-Ukrainian conflict, one of the biggest challenges for local seafood companies is securing enough processing materials for year-end orders, Nam said.
Hồ Quốc Lực, chairman of the Sao Ta Food Joint Stock Company, said many shrimp farms in Sóc Trăng province were facing difficulties due to the COVID-19 pandemic, and some had closed.
The supply of raw shrimp will decrease sharply as farmers dare not develop shrimp farming due to the potential of pandemic outbreak.
Sao Ta is still dependent on the external supply of raw materials as the company’s agricultural region meets only 20-30% of its processing demand. Complete self-sufficiency of all shrimp materials is not possible because the shrimp farming industry is still developing spontaneously.
Forecasting pangasius exports in 2022, Võ Hùng Dũng, former VCCI branch manager in Cần Thơ, said there are two scenarios to exceed the turnover reached in 2018 to more than 2.2 billion dollars. , or reach only $2 billion.
The export turnover depends on the production and expansion of the agricultural region, not on the market demand.
Dũng said pangasius exports rose sharply in the first six months, mainly due to large stocks from the previous year, not an increase in agricultural production.
At present, the global demand is increasing sharply while the domestic seafood industry is facing the greatest difficulty of running out of raw materials.
However, Dũng said a shortage of raw material supply might be preferable to an excess. This shortage can be a short-term difficulty for companies, but it is also a reason for them to make more efforts to have a sustainable development of their value chains.
“It doesn’t matter if the fish industry lacks inputs, companies can increase imports for processing. Increasing imports of raw materials by processors is also a way for them to penetrate deeper into the supply chain. global sourcing, which allows businesses to grow further,” says Dũng.
The Department of Fisheries forecasts that the total seafood production in 2022 will reach 8.73 million tons and the total value of seafood exports will be $9 billion. —VNS