VN firms seek markets for tra fish

The US has imposed high anti-dumping tariffs on Vietnamesetra exporters since 2014. Earlier this year, it also imposed a new requirement that foreign exporters demonstrate their food safety control system is equivalent to American regulations, creating a new hurdle for Vietnamese companies.

Although prices in the US market are high and stable, the difficulties are spurring Vietnamesetra companies to seek new customers in Mexico, Canada and China.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), there are about 14 trafish enterprises exporting to the US market. However, due to the high anti-dumping tax, only three companies -- Vinh Hoan Corporation, Hung Vuong JSC and Bien Dong Seafood Company Ltd -- are significant exporters to this market, while the remaining 11 ship small quantities.

As the role of the US as an importer of tra fish declines, Vietnamese companies are working to increase demand for tra internationally. In the long run, the businesses say they need to develop branding and improve the image of trafish in the world market.

About three years ago, Truong Giang Fisheries Joint Stock Company in the southern province of Dong Thap tried to export some containers of catfish to the US, but the high anti-dumping tax made the effort unprofitable. The company has no intention to try to exporttrafish to the US again. Instead it is seeking other markets.

Ms. Hang Van, Deputy Director of Truong Giang Company, said that in the past few years, when the US imposed a high anti-dumping duty, many businesses have moved their exports to other markets.

“Notably, in South Asia, Pakistan and India are quite potential markets for Vietnamese pangasius,” Ms. Van said. “Pakistan currently accounts for about 10 percent of the company’s exports.”

According to Ms. Van, tra fish exporters could focus on promoting exports to the Indian market, the world’s second-largest in terms of population. The Indian consumers have initially accepted trafish products.

"However, the import tax oftrafish in India is still too high, up to 70 – 80 percent, so that importers do not dare to import much,” said Ms. Van. “In the coming time, if the two governments enhance trade cooperation and reduce import taxes, Vietnam’s traconsumption market will be very large.”

Song Tien Seafood JSC and Ngoc Xuan Seafood JSC in the southern province of Tien Giang are also seeking ways to export their products to non-US markets, including the EU, China and Middle East.

Ms. Nguyen Thi Anh, the head of both businesses mentioned above, said her companies this year accessed a number of new markets, such as the Middle East, South America and China.

“As for the EU market, it has been still the strategic market of businesses for many years, accounting for about 60 – 70 percent of the total exports,” said Ms. Anh. “To keep the stable volume of customers in this market, the company has focused on investment, ensuring product quality from raw materials to processing.”

Therefore, although the company does not exporttrafish to the US, its export turnover is stable and growing, Ms. Anh added.

Insiders also said that Vinh Hoan - one of the three leading Vietnamese companies exportingtrafish to the US - are focusing on exploiting newly-emerged markets.

Ms. Nguyen Ngo Vi Tam, General Director of Vinh Hoan Corporation, said the company had recently developed new markets. It is especially focusing on value-added products.

Ms. Tam said the company had installed a production line of grilled tra fish products marinated in teriyaki, a Japanese cooking technique, for export to Japan. After years of development efforts, Japanese consumers have started accepting freshwater fish products.

“If businesses focus on product quality control, this will be a potential market for Vietnam’s tra industry in Asia, just after China,” said Ms. Tam.

Honorary President of VASEP Ms. Nguyen Thi Hong Minh said there were still many opportunities to develop the trafish industry and change the world view of Vietnamese trafish. First of all, he said, Vietnam needs a national-level trafish product.

Minh proposed to make a line oftrafish fillet products that would be based on a common standard system. Meanwhile, the processing enterprises and exporters would jointly develop markets and branding.

"The main product must be fillet because it accounts for 80 percent of Vietnam’s export oftrafish. In addition, relevant agencies must also support the development of this product line, which needs to have logos and a brand name as well,” said Ms. Minh.