August 15, 2023

Vietnam's seafood export sector faces prolonged raw material shortages

The Ministry of Agriculture and Rural Development in Vietnam has projected that the shortage of raw materials crucial for seafood export processing will extend until the end of the current year, Saigon Times reported.

Despite a partial recovery in exports witnessed in May and June, the persistent downtrend in prices of aquaculture products is exerting continued pressure on profits, fostering a cautious outlook among farmers.

Vietnam's aquaculture industry has grappled with a setback in export performance, marked by a significant 27.4% year-on-year decline in export value, estimated at around US$4.13 billion, for the January-June period.

In the first half of 2023, seafood output reached 4.27 million tonnes, representing 47.2% of the annual target, with aquaculture products accounting for over 2.3 million tonnes.

To address these challenges, the ministry issued a directive on August 8 aimed at enhancing oversight and guidance in the aquaculture sector for the latter half of the year.

This directive is focused on facilitating the swift dissemination of vital information to farmers and enterprises. Provinces and cities are required to provide up-to-date production data, supply sources, and price trends. This information will then be shared with farmers and relevant enterprises, enabling them to formulate strategic responses for various aspects of farming, processing, and export.

The directive underscores the importance of cost-cutting measures and the adoption of advanced farming techniques within the aquaculture sector. It also encourages the establishment of collaborative production networks to reduce intermediaries, ensuring efficient delivery of input materials to farmers.

-      Saigon Times