November 1, 2012

About 80% of shrimp processors in Vietnam's Cuu Long (Mekong) Delta region are facing bankruptcy.

While the seafood sector saw high growth in the first quarter of this year, there was a steep drop-off in the third quarter, according to the deputy director of the Ministry of Industry and Trade's Import-Export Department, Duong Phuong Thao.

Seafood exports in the first 10 months of the year totalled US$5 billion, including US$2.4 billion in shrimp, but this was well off the pace needed to meet the target set for the year of US$6.5 billion, she said.

Shrimp breeders were facing fierce competition from Thai and Indian producers, and shrimp breeding in the Delta has been affected by a prolonged epidemic since 2011. Neither breeders nor processors were utilising safe production processes, she said.

The deputy director of the southern province of Soc Trang's Department of Agriculture and Rural Development, Nguyen Van Khoi, said the province had lost US$190 million during the 2011-12 growing season due to the epidemic.

The deputy director of the southern province of Dong Thap's Department of Industry and Trade, Phan Kim Sa, also said seafood breeders and processors were paying insufficient attention to quantity.

The seafood sector needed to plan and co-ordinate breeding areas and increase the value of processed products in order to maximise profits for farmers, Sa said, urging regulations be imposed to maintain a floor price on shrimp in order to help struggling farmers.

He also said the Government should closely supervise the industry to limit unhealthy competition

Aquacultural Breeding Institute director, Nguyen Van Hao, proposed that local authorities impose good agricultural practices (VietGap) standards to avoid barriers being imposed on Vietnamese seafood by importers.

Deputy Minister of Agriculture and Rural Development, Vu Van Tam, also said the country should reform its process of negotiating major export contracts and seek more diversified sources of capital to develop the industry.