Seafood Firms Striving to Cut Production Costs

Vietnamese seafood companies will have to cut production costs in 2009 to overcome difficulties caused by world economic downturn, the state-run Tuoi Tre (Youth) newspaper reported, citing seafood experts at the 2009 seafood export meeting.

 

Le Van Quang, general director of Minh Phu Seafood JSC-cum-vice chairman of the Vietnam Association of Seafood Exporters and Producers (VASEP) said Vietnam's seafood export revenue will decrease at least 30 per cent in 2009 as huge markets like Japan, US, and EU fall into recession and consumption in potential markets like Ukraine, Russia and South Korea is dropping.

 

VASEP's chairman Tran Thien Hai said many seafood plants have to reduce their capacity by 50 per cent-60 per cent, warning that some 30,000 workers will lose job after traditional Tet festival.

 

Meanwhile, Ngo Phuoc Hau, general director of An Giang Seafood JSC, or Agifish, warned of serious shortage of pangaisus for processing as aquaculture acreage has sharply decreased in 2008, and breeders are finding hard to access loan for new crop.

 

The experts agreed that local seafood companies should cut production cost, including reducing input price. They said they will cut fish breeding cost by VND11,000-VND12,000 a kilogram, while proposing slash of aquatic product import tax to 0 per cent or 0.5 per cent.

 

Hau suggested the companies shift to new markets such as Southern America, Middle East and Northern Africa.

 

Minister of Agriculture and Rural Development said the Government and the ministry are discussing ways to help seafood breeders and processors, adding that nine out of ten proposals from the seafood sector will be dealt with. (Youth)