Vietnam earned US$2.61 billion from exporting agricultural, forest and aquatic products in April 2015, bringing the export value to US$9.13 billion in the first four months of 2015, down 6 percent year on year, according to the Ministry of Agriculture and Rural Development. Seafood export was estimated at US$1.87 billion, down 16.6 percent. Indeed, Vietnam's seafood sector is seeing numerous export difficulties.
Good harvest but low export value
April is the starting month of the fishing season and the weather was relatively favourable for fishing. Many popular species of seafood like anchovy, tuna, zebrafish and beltfish were present in fishing grounds; thus, coastal localities encouraged their fishermen to boost offshore commercial fishing. Vietnam was estimated to capture 1.07 million tonnes of seafood in the first four months, up 6 percent year on year, including 1.02 million tonnes of marine creatures, up 6.1 percent.
Tuna output increased in Khanh Hoa, Phu Yen and Binh Dinh provinces. Phu Yen was estimated to catch 2,800 tonnes, up 12 percent year on year; Binh Dinh was projected to capture 3,355 tonnes, up 1.6 percent; and Khanh Hoa was forecast to fish 1,170 tonnes, up 10 percent.
However, poor preservation technologies result in low quality and low product prices as a result. Hence, fishermen did not make much profit, some even suffered losses. Many tuna fishing vessels sit idle at anchor in shelters, or refit to catch other fish. Tuna prices in Khanh Hoa are fluctuating at VND95,000-110,000 per kilogram. In Phu Yen, the first-grade tuna price is VND110,000 per kilogram, a decrease of VND20,000 from the start of the fishing season. The falling tuna export is also a cause to weak buying.
According to the ministry, seafood export to most major markets fell sharply from a year-ago period. Exchange rate was detrimental to Vietnam’s seafood export because more than 90 percent of contracts were paid in US dollars. The United States (US) remained the top importer of Vietnamese seafood, taking up 19.07 percent. In the first three months of 2015, seafood export to this market reached US$260.07 million, down 33.78 percent year on year. Exports to Japan slumped 15.08 percent. However, export growth was seen with China (17.2 percent), Thailand (13.26 percent) and the Netherlands (10.82 percent).
Actively seeking new markets
In 2015, increased shrimp supply in big exporters like Thailand and India and disadvantages of anti-dumping duties imposed on Vietnam’s shrimp gave rise to the shrinkage of Vietnam’s exports to major markets, especially the US market. The review period in January 2015, the US Department of Commerce imposed higher antidumping tax than other reviews, thus causing difficulty to pangasius exporters.
To deal with difficulties, a leading solution is to seek out new markets, avoid scattered investment and focus on key tasks. Exporters will also need to speed up coordination with commercial counsellors and chambers of commerce of Vietnam in foreign countries to have more market information. Currently, Vietnamese companies are seeking new partners and markets like Australia, South Korea, China, Hong Kong and Arab countries. These potential markets do not impose strict technical requirements, have culinary similarities with Vietnam and have suitable payment methods.
At a conference on agricultural and seafood export boosting solutions held by the Ministry of Industry and Trade in Hanoi on May 4, 2015, experts noted that businesses need to connect supply and demand and connect production and distribution. The supply-demand connection will create a close linkage from material zones to wholesale markets, distribution systems and retail outlets through modern logistics and infrastructure systems.
Besides, they also need to focus on branding and competitiveness development to assert their strong footholds in domestic and foreign markets.
Thu Ha
Vietnamese
