September 18, 2007

 

Vietnam seafood body to import raw materials, fish on possible shortage

 

 

The Vietnam Association of Seafood Exporters and Producers (VASEP) recently requested permission from Vietnam's agriculture ministry to import aquatic raw materials due to possible scarcity of raw materials.

 

This request, however, sparked opposing reactions from industry players stating Vietnam abounds with fishery resources and aquaculture areas in the central and Cuu Long river delta regions.

 

Some experts expressed apprehension that imports of fishery materials may well likely affect the development of the domestic aquatic farming areas.

 

Others worry on unsafe imported raw materials.

 

Nevertheless, VASEP admits unplanned development of processing establishments has caused an imbalance between materials supply and demand.

 

In particular, a majority of domestic processing establishments operate at only 30 percent of their capacity due material shortage, causing significant waste in many aspects such as investment capital, fuel and labour.

 

VASEP President Tran Thien Hai admitted that the system of processing facilities is developing at a pace much quickly than that of the harvesting side of the aquaculture industry.

 

In 2006 alone, the capacity of nation-wide freezing enterprises went up by 20 percent compared with that in 2005, while aquatic products harvested from fishing and farming activities increased by only 7.6 per cent, Hai said.

 

The shortfall affects factories in the central and northern provinces, particularly between October and May, according to Le Van Quang, director of the Ca Mau-based Minh Phu Aquatic Production Company.

 

Another seafood industry executive said the fishery industry is a highly seasonal trade and material imports can alleviate demand from domestic factories.

 

Vietnam has many processing factories with better technology and equipment than other countries and thus, processors should take advantage of that favour, he said.

 

Material imports can also encourage domestic aquatic product producers to improve their businesses by prompting them to boost production and reduce the use of antibiotics and other chemicals.

 

Ultimately, however, the decision of whether to import still rests with the Ministry of Agriculture and Rural Development.