Fishermen pack basa at Tan Thanh fish farm cooperative in Vinh Long province (Photo: VNA) The Vietnam Association of Seafood Exporters and Producers (VASEP) said that Vietnam’sbasa exports reached 788 million USD in the first half of the year, a year-on-yearincrease of 18 percent.
While exports to the US and small-scale markets are experiencing strong growth,exports to the EU are continuously decreasing. The total value of basaexports to the EU reached 51 million USD as of last month, a year-on-yeardecrease of 21 percent.
The export value of basa to the EU has declined for the past two years.
A representative of VASEP said that due to changes in the EU market, manybasa exporters had turned to other markets. By the end of May, nearly25 Vietnamese exporters had withdrawn from the EU market.
Talking to Tien Phong (Vanguard)newspaper, Truong Dinh Hoe, VASEP General Secretary, said that after the Vietnam- EU Free Trade Agreement took effect, Vietnamese basa exports to this marketenjoyed a preferential tax rate, down to only 0 percent, opening up greatopportunities for Vietnam’s basa industry.
In the EU, Vietnam dominates the basa market and seems to have no competitors.Some countries like Bangladesh and China also export basa to the market, butthe volume is lower.
Hoe said that entering this year, the retail market in the EU has begun torecover after a deep decline due to the impact of the coronavirus.
However, the food service industry, including restaurants and hotels in the EU,is recovering very slowly.
Meanwhile, importers are more cautious in their orders, especially since theoutbreak of the coronavirus. EU consumers have started to change theirconsumption habits, and are more interested in safety, of which they werealready very demanding.
Customers asked for higher quality products but offered lower prices. Therequirements for food safety standards were very strict, and if the product wasfound to be non-compliant, it would be simultaneously reported andthoroughly inspected at the port of entry, he added.
This could take from two to three weeks, causing costs incurred toincrease. EU customers are also increasingly demanding basa has asustainability certification, according to Hoe.
Tran Dinh Luan, Director General of the Directorate of Fisheries under theMinistry of Agriculture and Rural Development, said that to improve the valueof basa exports to the EU market, businesses needed to invest in and improveprocessing capacity to meet safety standards and strict conditions from the EU.
At the same time, businesses also needed to operate actively and flexibly,reduce costs during operation, and increase adaptability and competitiveness inthe context that the market will change due to the impact of the pandemic, headded./.
VNA
