March 19, 2012

Vietnam's 2012 seafood export target unlikely to attain

As most seafood companies are facing a shortage of raw material and funds, this year's target to achieve an export turnover of US$6.5 billion seemed unattainable, Vietnam Association of Seafood Exporters and Producers (VASEP) said on March 14.

According to statistics, from January 1-February 15 this year, the country's seafood export revenue was estimated at US$558 million, an increase of 9% over the same period last year. However, to increase export revenues, the country needs to import more raw material.

A representative of VASEP said that decline in fish volumes and the heavy pollution in farms has led to a serious shortage of raw material and heavy reliance on imports.

Currently, many seafood processing plants are facing shortage of raw material and capital. Several companies have had to reduce their production capacity or even temporarily stop seafood processing.

A representative of VASEP said that the seafood sector is facing many setbacks of late. In addition, many companies have built seafood processing plants, leading to a shortage of raw material.

To maintain operations, seafood companies need to reduce overhead expenses and increase investments in raw material.