January 30, 2007

 

Vietnam fisheries ready to face challenges in globalisation

 

 

Amid the difficulties confronting market mechanisms under the World Trade Organisation (WTO), the Vietnam fisheries sector is now fully capable of integrating into the global economy and is prepared to face increased competition and more regular trade barriers.

 

This remark was disclosed by Minister of Fisheries Ta Quang Ngoc to the Vietnam News Agency on the opportunities for Vietnamese aquatic products after the country's admission in the WTO.

 

According to Minister Ngoc, Vietnam's entry to the WTO shall open doors to corner more markets. Vietnam offers preferential tariff to trading partners whereas the country also requires equal treatment for Vietnamese products whenever trade disputes occur.

 

Vietnamese aquatic products have gained foothold and coped with trade barriers despite its struggles in the global market. The country has become one of the 10 top seafood exporters in the world penetrating hard-to-crack markets such as EU, the US, Canada, South Korea and Japan.

 

Seafood export value has been continually increasing over recent years, reaching US$1 billion in 2000, increasing to US$2 billion in 2002 and surpassing US$3 billion mark in 2006.

 

Minister Ngoc affirmed that these rising figures indicate Vietnam's continuous expansion of its seafood markets. He said Vietnam's investments on facility upgrading and improved production management has markedly increased product output, reduced production cost and meeting food safety standards of foreign consumers.

 

Ngoc said Vietnam's long coast, favourable climate and water environment suitable for aquaculture, and a large labour force of more than 4 million experienced people in coastal areas has also boosted the country's fisheries and aquaculture.

 

On the other hand, Ngoc stressed that the countries' stringent regulations on food sanitation and Vietnamese sectors' limited knowledge of international law, particularly in trade disputes, could lessen the country's competitiveness. 

 

In addition, many small- and medium-sized enterprises are facing many difficulties in capital, technology and low managing capacity, he said.

 

The minister also emphasised the imbalance of material production and processing sectors, the resource management, management of fishing ships and backward fishery statistical work that needs immediate attention.

 

The problem of trademark should also be addressed, the minister said, adding that Vietnamese aquatic products have been mainly exported through intermediaries and distributed to markets under different trademarks, which limit potential advertising for the products and could possibly cause trade disputes.

 

To address the predicaments, the Fisheries Ministry will accelerate cooperation between producers and traders of aquatic products, promoting trade and advertising for national trademarks. The ministry will also encourage businesses to invest in upgrading technology, raising production effectiveness, diversifying products and reorganising production to turn out high quality products.

 

The ministry will also establish a system for producers and processors to tackle the stricter regulations on food safety and hygiene as well as the conforming to the international standards.

 

The minister is optimistic that the Vietnamese fisheries sector will continue to grow and will be able to earn US$3.5 billion of export turnover in 2007; and the target of US$4 to 4.5 billion by 2010 will be achieved.