December 15, 2009

Vietnam seafood sector plans major cold storage improvements

The seafood industry in Vietnam is planning a major upgrade of its cold storage system for technology, quantity and location distribution in order to meet the export target of US$5.5 billion set for 2015.

Local daily Vietnam Economic Times reports new cold storage development project will upgrade or build 584 facilities with a capacity of less than 100 tonnes, 254 of less than 300 tonnes, and 50 of more than 500 tonnes.

Industry players said most of the existing cold storage facilities were outdated, poorly equipped and failed to meet the demand for quick deep freezing to preserve seafood for export.

The project aims to increase cold storage capacity of the industry by 8% a year until 2020.

The current distribution of cold storage facilities is imbalanced and hurting fishermen, particularly during peak season, according to the Times.

Major coastal provinces with large reserves of fish such as Kien Giang, Ben Tre, Ca Mau and Bac Lieu do not have sufficient cold storage capacity, forcing fishermen to sell their catch at lower prices during peak season and suffer loss.

The big port cities of Ho Chi Minh City and Hai Phong failed to build bonded warehouses for import and export of sea products in potential markets like the EU, the US and Japan, said the paper.

Vietnam has also failed to establish a standard cold storage system to preserve processed frozen seafood for domestic distribution at trading centres in urban areas nationwide.

The proposed development seeks to build cold storage facilities for preserving seafood for export will be eligible for preferential loans and land-use leases. They will also be provided with financial support in site clearance and infrastructure construction.

The incentive policy aims to expedite construction of cold storage facilities because they need large capital and long terms to recoup it, according to experts.