Vietnam seafood exports incur significant losses

Seafood exporters in Vietnam have reported losses for the first time in 2009 after a decade of continuous growth, which is the second consecutive year of loss.

Tra prices have remained low in the Mekong Delta despite rising seafood demand in the year-end period. A farmer of the Can Tho City's Thot Not District sold over 50 tonnes of pangasius at VND14,500 (US$0.76) per kg, but incurred a loss of over VND100 million (US$5,271) after deducting expenses.

Now exporters are suffering from the same problem: enterprises in An Giang and Dong Thap provinces and Can Tho City have not been able to meet their targets. Many companies have incurred hefty losses since losing the Russian market in early 2009 and are facing low export prices and supply shortages.

Tiger shrimp is selling for profitable prices - but production has not been able to keep up to meet demand. Factories that process shrimp for export in Ca Mau, Bac Lieu and Soc Trang provinces are now short of the seafood, their exports stalled.

Ca Mau Seafood Processors and Exporters Association general secretary Ly Van Thuan says that seafood exports in Ca Mau Province may yield just US$630 million this year, US$35-million less than originally estimated. As a result, seafood farming in Vietnam had stagnated, leading to shortages of shrimp and high prices.

Increasing amounts of farmers are leaving their farms and enterprises in Dong Thap and An Gaing provinces are selling their factories due to losses.

Now is the time to restructure Vietnam's seafood farming and export industry Dao said, and to tighten regulations for building factories. Only enterprises that have the capacity, markets and quality seafood should be permitted to export.

Experts are calling on the government to reorganise the country's seafood industry and adopt sustainable practices through farming, harvesting, processing and export.