The Ministry of Agriculture and Rural Development and VASEP warned that Vietnamese aquatic exporters may face several problems in the last half of the year including strict standards on hygiene of key export markets such as the U.S, Japan and the EU.
Vietnam exports aquatic products to 144 countries and territories. The top five export markets are the U.S, the EU, Japan, China and the Republic of Korea, accounting for 70 percent of the country’s total export value of aquatic products.
The heavy reliance on imported materials from foreign markets and an imbalance between aquatic rearing and processing are considered as the main sources of problems to Vietnam aquatic exporters, according to Chairman of VASEP Ngo Van Ich.
He also said a number of Vietnamese exporters, especially shrimp and catfish exporters, would continue to be hurt by anti-dumping tariffs imposed by the US and other import markets. In addition, the EU is expected to face more difficulties due to currency depreciation and negative information about the Eurozone, which will affect Vietnamese aquatic exports.
The ongoing drought and saline intrusion are still affecting domestic aquatic production, according to VASEP.
On the other hand, given the many difficulties seafood producers and exporters are facing, VASEP has made the Government a series of proposals. VASEP suggests the Government should continue reforming regulations and administrative procedures for seafood processing and export activities, including some provisions on inspection and certificates of food safety for export, and regulations on labeling. VASEP also proposes that the State should give quarantine exemptions to enterprises that regularly import material for processing seafood for exports from the same origin and the same suppliers, based on inspection results of previous lots.
First half of 2016
According to VASEP, aquatic exports reached 3.15 billion USD in the first half of the year, a rise of 4 per cent over the same period last year. Of this figure, shrimp exports reached 1.35 billion USD, a rise of 4.8 per cent. The shrimp export sector has seen a recovery in key export markets such as the US, the EU, the Republic of Korea and China, except for an 8.8 percent decrease in exports to Japan, according to Ms. Le Hang, Vice Director of the VASEP.Pro Centre.
Ms. Le Hang also said that the growth of Vietnam’s shrimp export is hindered by high production costs, and a shortage of raw materials. Vietnam’s shrimp export prices are 20 percent higher than that of other foreign competitors, for instance, the average prices of Vietnamese shrimp to the U.S is trading at 11.2 USD per kg while China and India are selling at 6.7 and 10.8 USD per kg, respectively, she added. Besides this, a surplus supply over demand has made the market’s competitiveness fiercer both home and aboard.
Exports of tuna reached 225 million USD, a slightly less than the same period last year. The decline happened in all markets except ASEAN countries. Among the major importers, Japan, the fourth largest importer of Vietnam’s tuna, has seen the deepest decline with a decrease of nearly 34 percent in the second quarter this year. The main reason leading to the decrease of tuna exports to Japan is the high levy of 6.4 - 7.2 percent imposed on Vietnam’s tuna as well as high production costs entail the high price of Vietnam’s tuna.
Meanwhile, catfish exported was 790 million USD, an increase of 5.4 per cent over the same period. Exports of cuttlefish and octopus totaled 179 million USD in the first half of the year, a drop of nearly 10 per cent. Other aquatic exports reached more than 511 million USD, up 7.6 per cent.
In the first half of this year, the U.S is the biggest export market for Vietnam, which accounts for 21 per cent of total exports, with export value of 646 million USD in the first half, a rise of 10.7 per cent over the same period. Meanwhile, exports of aquatic products to China saw asignificant increase in the first half of the year, reaching $384 million, a surge of nearly 43 per cent over the same period. In recent years, Vietnamese exporters have shifted from stricter markets to China, which accounts for 9 per cent of total aquatic exports.
It is expected that Vietnam’s total aquatic export turnover will reach 7.1 billion USD thanks to the recovery of the world economy and demand for seafood. Shrimp exports are expected to reach 3 billion USD, a rise of 10 percent, and catfish, 1.6 billion USD, a drop of 4 percent over last year. Total exports of tuna are also expected to increase, to 500 million USD, by year-end, up 10 percent, and cuttlefish and octopus, up 5 percent over last year.
