However, many aquatic enterprises have forecast that Vietnam is facing numerous difficulties and challenges ahead due to the negative effects caused by saltwater intrusion in main farming areas and increased competitiveness in key export markets.
The Directorate of Fisheries under the MARD said ongoing saltwater encroachment in the Mekong Delta region seriously impacts on aquaculture, especially freshwater prawn breeding, saltwater has damaged nearly 2,000 ha of intensive shrimp farming. Saltwater encroachment will continue, worsening in March and April and lasting until June.
In the first two months of this year, the area of shrimp breeding in the region totalled only 386,000 ha, including 358,000 ha of giant tiger prawn and 9,700 ha of white leg prawn, equivalent to 86.6 percent and 72.5 percent against the same period last year.
Many aquatic firms said they have had to decline supply contracts due to shortages of prawns for processing.
According to Secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP) Mr. Truong Dinh Hoe, farmers narrowed cultivation because of their concern about diseases and water shortages, but he also noted that increasing export prices at present will motivate them to expand cultivation again.
He said that Vietnamese aquatic producers and processors are hoping for stronger growth in the next few months when international seafood products fairs are organised, offering Vietnamese firms opportunities to study market demand, seek partners and expand the market for their products. Vietnam aims for 4 billion USD in shrimp exports this year, Mr. Hoe added.
The demand for prawns in the world market in 2016 is forecast to increase between 3.5 - 5.0 percent compared to 2015, and this is likely to bring an opportunity to Vietnam to raise exports.
The ongoing saltwater encroachment also has impacted significantly on rice production and exports in the Mekong Delta.
This year, this region expected to plant over 4.3 million hectares of rice fields, which would yield approximately 25.7 million tonnes of rice. However, drought and saltwater instruction have reduced the expected output by 700,000 tonnes, which are equivalent to 350,000 tonnes of rice based on preliminary estimations.
In the first three months of this year, Vietnam exported 1.59 million tonnes of rice. For the whole year, the export volume is expected to remain at last year’s 6.5 million tonnes
To avoid losses, rice farmers in the Mekong Delta have been encouraged to switch to breeding shrimp and plant rice in June when the rainy season comes.
In an effort to fight against salwater instrusion, the Deputy Prime Minister Mr. Nguyen Xuan Phuc has assigned the MARD to closely monitor rice production and exports. The Ministry of Natural Resources and Environment were also asked to keep close track of saltwater encroachment forecasts to cooperate with the MARD in offering production guidance to farmers.
This will help ensure domestic food security and effectively manage export activities, given that prolonged and serious drought and saline intrusion are hitting major granaries in the country, particularly in the Mekong Delta.
