Vietnam aquaculture exports pick up amid industry problems

Vietnam poses a strong recovery in its seafood exports this year, though officials noted that farmers and traders need to adopt a more cooperative attitude to up the trade.

Vietnam was still able to export a total amount of US$350 million seafood products last month, raising the total export revenue from January to April to US$1.2 billion, up 17.4% on-year.

At the first Vietnam Seafood Festival late last month, domestic businesses signed several significant seafood exporting contracts, expecting to add to the boost in seafood exports later this year. However, the industry's links between breeders, processors and exporters were too weak to be considered "sustainable," said Tran Thien Hai, chairman of the Vietnam Association of Seafood Exporters and Producers (VASEP).

For instance, when the price of seafood is on the rise, breeders tend to break contracts they have signed with their partners by selling their products to third parties who can offer higher prices. And when prices drop, some businesses seek ways to delay their purchases, causing losses to breeders, he said. 

Dr. Duong Nghia Quoc, deputy director of the Dong Thap province Department of Agriculture and Rural Development, pointed out that despite the export recovery, many aquaculturists were still facing big losses.

The price of tra fish dropped suddenly to only VND15,500 (US$0.82) per kilogramme while production costs have soared to VND16,000-16,500 (US$0.84- US$0.87) per kilogramme due to an increase in feed prices.

Vo Van De, a breeder of tra fish in Thot Not District, Can Tho City, said most breeders rely on bank loans to run their business through an eight-month breeding season. "But when the harvest comes, traders pay only 30% for their purchase and delay the payment for the remaining 70% until one or two months later. By imposing deferred payments, traders obviously appropriate our capital," he complained.       

"Only when such coordination is set up can the fisheries sector develop sustainably," Ministry of Agriculture and Rural Development (MARD) Deputy Minister Luong Le Phuong reported, adding that the ministry plans to streamline all operations in the fisheries sector – from breeding, processing and exporting.