November 17, 2010

 

Vietnam attains US$4.5-billion seafood export target

Vietnam's seafood sector is able to achieve export target of US$4.5 billion for 2010 amid raw material shortage.

 

The shrimp and tra fish prices have been skyrocketing whereas processing factories cannot purchase enough materials and run just 50% of capacity.

 

Moreover, shrimp and tra fish export have been increasing, but the output of those products is not increasing accordingly.

 

According to Nguyen Xuan Nam, general director of Hai Vuong Co.Ltd, flooding in central in May and June caused a decline shrimp and tra fish output. Many processing factories had to import material to maintain their operations and jobs for over 2,000 workers, he added.

 

Processing factories in the central region are operating 30-40% capacity due to material shortage.

 

Supply has also dropped because many fishermen are reluctant to go fishing offshore. Natural disasters such as typhoons and floods often occurring in Central Vietnam also largely affect seafood export.

 

According to Vietnam Association of Seafood Exporters and Producers (VASEP), exploited seafood output will face difficulties to achieve 2.1 million tonnes per year in the next years.

 

In past years, many factories had to import material around 140,000-150,000 tonnes of seafood of different kinds each year, worth US$300-$320 million.

 

Japan is the biggest export market for Vietnam. However, Vietnam also has to import material from Japan.

 

VASEP said that if seafood industry just replies on domestic material, seafood export is able to achieve maximum US$4 billion per year only.

 

Seafood processing factories need to import around 650,000 tonnes of material in the next years, an increase of four times compare to 2010.

 

To increase seafood export turnover by 2020, factories need to import US$2 billion of seafood material.

 

Many Vietnamese seafood exporters have recently voiced their concern about the shortage of seafood materials for domestic processing, and asked the Government to reduce the import tariff on seafood materials to 0% in order to help domestic processors.

 

Nguyen Van Kich, general director of Cafatex Joint Stock Company in Hau Giang Province said many seafood processing factories just run at 50-70% of capacity due to material shortage and import tariff on material at high level.

 

China, Thailand, India and Malaysia are the biggest seafood export countries and the biggest seafood importer as well reduced import tariff on seafood material from 0%-5%. Therefore, Vietnam needs to consider reducing import tariff on seafood material to maintain export growth from 8%-10% per year, Mr. Kich said.

 

VASEP has asked the Government to consider cutting the import tariff to 0%, the tax levels which are being applied in many countries in the region. Besides, the association has also asked the Ministry of Agriculture and Rural Development and other relevant agencies to create the most favourable conditions for the seafood material import by easing administration procedures.