Promoting Capacity for Shrimp Processing Industry

5:17:36 PM | 12/5/2013

As a province with the largest area of seafood production nationwide (about 296,300 ha), for the past years, seafood has been aggressively restructured, contributing greatly to the development of the processing industry of Ca Mau province. Especially, with about 90 percent of water area for seafood production, shrimp has become the major product for export of the province. Vietnam Business Forum interviewed Mr Nguyen Van Do, Director of the provincial Department of Industry and Trade on the efforts to develop the local shrimp processing industry. Thanh Lam reports.
Could you please introduce more about the advantages of breeding and processing shrimp of Ca Mau?
An outstanding point of this major product is that it is processed from ecological materials produced in the models of forest - shrimp, rice - shrimp, fish - shrimp or extensive farming; therefore, the product is strongly preferred in markets like North America, Japan and EU. Moreover, Ca Mau is also concentrating on breeding shrimp industrially with an area of over 5,200 ha; the area for improved extensive farming reaches more than 22,000 ha with average capacity of 650kg/ha.
 
Ca Mau targets to enlarge the total area for shrimp improved extensive farming to about 38,000 ha in 2013 and to 55,000 ha in 2015; area for breeding shrimp industrially alone will reach about 6,000 ha by the end of 2013. Apart from exploiting new methods to increase productivity, the province also focuses on applying science - technology to develop sustainably; improve quality of breeds, feeding food and infrastructure to achieve capacity, quality and export revenues of US$1,050 million in 2013.
 
Currently, Ca Mau province has 34 processing factories with capacity of about 190,000 tonnes a year. It has export partnership with over 40 countries and territories; export revenues of frozen shrimp of Ca Mau are standing the first or second places in the Mekong River Delta. In the first 6 months of 2013, its shrimp processing production for export reached 37,780 tonnes, export revenues were US$381.35 million. The province is concentrating on promoting its seafood processing industry, aiming to raise the proportion of high value added products, develop and take advantage of on site materials to save costs and control materials more easily.
 
Looking ahead to 2015, Ca Mau aims to develop the processing industry in the direction of increasing the proportion of refined and high value added products that use on site material resources, as well as focusing properly on seafood processing industry. How does Ca Mau construct material resources to serve the processing industry?
Currently, the province is facing difficulties related to shrimp resources which meet only 40 - 50 percent of processing factories’ demand. Therefore, Ca Mau has limited construction of new processing factories, instead encouraging them to renew equipment, technology, improve productivity and quality. Increase area of ponds and dams to breed shrimps; encourage people and large scale enterprises to breed shrimps industrially to supply materials for enterprises themselves. Moreover, the Industry and Trade Department also invests in electricity network projects to serve the sustainable development of breeding shrimp industrially.
 
Besides, quality of breeds and products is also concerned; the province has applied VietGAP standard to the shrimp breeding process in several places and achieved considerable initial results. This is a modern model with low investment and suitable for improved shrimp extensive farming and shrimp breeding industrially. In the context of high technical barriers by large export markets like the EU, the United States and Japan, this model will not only increase productivity but also ensure quality of materials for factories.
 
It is crucial to improve export capacity and competitiveness capacity in order to raise export revenues of the whole province. How does Ca Mau deal with this issue?
Recently, exporters of the province have faced many difficulties due to economic crisis, lack of management ability and several enterprises have suffered losses. Moreover, some large markets like the EU, the United States and Japan raise technical barriers to imported seafood products. The latest difficulty came from anti - subsidy duties that the US Ministry of Commerce has applied on export enterprises of Vietnam. These difficulties have significantly affected the competitiveness of enterprises in the province.
 
As a result, in the following time, to improve competitiveness capacity of enterprises, Ca Mau province will direct relevant authorities to implement Plan 08/KH-UBND dated 27th February 2013 of provincial People’s Committee to well implement Resolution 02/NQ-CP dated 07th January 2013 of the Government on solutions dealing with difficulties of production, trading, as well as supporting markets and dealing with bad debts.
 
The province will also create opportunities for enterprises to meet and converse directly with banks to find solutions to address difficulties related to capital and new capital access. It will also encourage enterprises to renew equipment to raise product quality, produce high value added products, and ensure food sanitation and safety. Moreover, the province will also concentrate on improving the investment environment, reduce administrative procedures; and create conditions for enterprises to participate in fairs and exhibitions domestically and internationally to introduce products and search for partners in new markets.