Fisheries Export Targets US$2.6Bln by 2005

Fisheries Export Targets US$2.6Bln by 2005  

In 2005, the final year of the five-year plan (2001-2005), the fisheries sector will try to increase its export value to US$2.6 billion. Beside foreign markets, the expansion of the domestic market is equally important. VIB Forum Reporter Nguyen Thu Huyen had an interview with Minister of Fisheries Ta Quang Ngoc.

How do you assess the export last year in comparison with previous years?

The Resolution of the IX Party Congress sets forth the objectives of the five-year plan (2001-2005) and the target for the fisheries sector is US$2.5 billion. By 2004, the sector had increased the export value to nearly US$2.4 billion. In view of competition and hurdles, though low, the growth rate marks a great effort from the sector. In comparison with previous years, especially from 1988 to 2002, the growth rate doubled every three years with over 30 per cent each year. The rapid growth is due to the favourable conditions of the period: First, the renewal policy; second, economic openness and integration; third, early expansion of markets in the EU and other countries with qualified products. Since 1999, Vietnam has been included in the first list of exporters to Europe. And then, Vietnam-US trade agreements opened the big American market for Vietnamese products. Furthermore, Vietnam has great potential for export. Shrimp raising is fully developed with ever-increasing output. Catfish and tuna have become its main products. The fisheries structure and catching have been improved with high export value. In 2002, the export value reached the mark of US$2.2 billion elevating Vietnam to the position of the world’s major exporters.

Technical and legal barriers have affected exports, would you comment on this?

Since the trade value of aquaproducts in the world is limited (US$55 billion a year, according to FAO), competition and barriers have become increasingly difficult. In late 2002, Vietnam was confronted with the barrier on food safety. The issues of trademarks, and catfish dumping ended in mid-2003. Then in late 2003 and throughout 2004, the shrimp law suit came up in the American market. The high production cost of Vietnamese shrimp requires increased added value in processing and improvements in food safety. The export value of US$2.4 billion is a high mark as the sector cannot continue its high growth rate of 30 per cent a year. The turning point is due to subjective and objective causes. We can correct our weaknesses and overcome challenges. But, with the law of the market, we should find a long-term approach.

Then, could the target of US$200 million be achieved in 2005?

The target for this five year period is US$2.5 billion. It reached nearly US$2.4 in 2004. In 2005, the sector will try to add US$200 million or 8 per cent of the five-year plan. The low objective is resulted from the high taxes imposed by the United States against Vietnamese shrimp. The sector has improved the processing and found new markets for the shrimp. Improvements must be also made in other export items. I believe that in addition to shrimp and catfish we can also export squid, octopus, and other seafood.

How do you see the domestic market?

So far we have only statistics on export, major trade between regions, cities and industrial zones. Vietnamese farmers rely on rural markets and self-supply. With a population of over 80 million, the domestic consumption is remarkable. First, it increases with GDP growth; second, fish can quickly improve family meals; third, for health reason, people eat more fish; fourth, the increasing trend of urban people to turn to aqua-products. Therefore, the domestic market is equally important. The fisheries sector makes up 11.2 per cent in the production value of agriculture-fisheries-forestry. Only 400,000 tonnes of aqua-products are processed, the remaining larger part is for home consumption. It will be an important task for the ministry in the coming years.

And how can you develop the domestic market?

In the past few years, as the aqua-product export was very important to Vietnamese economy, the domestic market was somewhat neglected. To develop the domestic market, together with the development of aquaculture, improvement must be made in processing to produce more quality products meeting the demand of local customers. A wholesale network must be established such as fish markets, fish ports and transaction centres. The Fisheries Law should be enforced together Trade Law and related regulations to form a legal framework for the domestic market. An information network should be developed to ensure efficient cooperation between concerned agencies at all levels. Policy should be devised to co-ordinate local and foreign markets and encourage home consumption of aqua-products.