June 9, 2008

Vietnam's seafood group again seeks for tax exemption

The Vietnam Association of Seafood Exporters and Processors (VASEP) once again called for the government to scrap duties on seafood imports to boost the domestic economy.

Nguyen Huu Dung, deputy chairman of VASEP, said boosting imports of seafood for processing and re-export could double or even triple the investment required, if tax barriers were removed.

VASEP's deputy chairman, Ngo Phuoc Hau, pointed out that China had become the world's leading seafood exporter by importing unprocessed seafood for export.

Furthermore, the additional investment required would be minimal and that there would be lucrative profits in the storage, transport and packing industries, Hau explained.

The VASEP reported that domestic seafood processors were operating well under capacity, with some reportedly producing just 30 to 50 percent of their potential output.

General director of Thuan Phuoc Seafood Trading Co, Tran Van Linh, said processors only had enough seafood to operate for three to five months a year.

Currently, Vietnam's seafood industry imports raw materials from 40 countries and territories, worth US$90 million to $100 million.