A tra fish processing line for export. (Photo: VNA) Hanoi (VNS/VNA) - Diversifying products and adapting quickly to marketfluctuations will help create growth momentum and remove difficulties forseafood exports, experts have said.
Since the beginning of the year, exports of the two main seafood products of Vietnam,tra (pangasius) fish and shrimps have declined sharply.
Tra fish exports, in particular, were severely impacted by the COVID-19 pandemic,which had a negative impact on domestic production, pushing the tra fish pricein the Mekong Delta region down.
According to Vietnam Association of Seafood Exporters and Producers (VASEP),tra fish import demand in China, which accounts for 22.5 percent of Vietnam'stotal export value, has recovered. However, other markets are still beingaffected by the pandemic.
VASEP said tra fish exports to big markets would be unlikely to rise topositive growth rates compared to the same period last year till at least theend of the second quarter.
This means fish farmers and businesses need to continue to balance farming, productionand processing.
The association forecast that China, the US and EU would still be major exportmarkets for tra fish in the next five years, accounting for 65 percent of thecountry’s total export value.
Truong Dinh Hoe, VASEP’s general secretary said the quality and requirements offood safety exported into these markets are increasingly strict. However,Vietnamese tra fish have met all market requirements, such as recognition fromthe US Department of Agriculture (USDA).
In addition, the US Department of Commerce (DOC) lowered anti-dumping duties onfrozen tra fish fillets from Vietnam in the 15th period of review (POR15).
The move was the DOC’s preliminary conclusion after investigating tra fishexported by certain Vietnamese firms from August 1, 2017, through July 31,2018.
In addition, most big Vietnamese tra fish exporters such as Vinh Hoan JointStock Company and Bien Dong Seafood Company Ltd have continued to enjoy zerotax. This has been a positive for local tra and basa exporters in a difficultsituation due to the pandemic.
In the first quarter of this year, shrimp exports saw relatively high growth.In April, there was a sharp decrease due to COVID-19, but there are stillopportunities for Vietnam’s shrimp and other seafood products to take advantageof post-pandemic.
Many seafood products are expected to have higher growth in the EU when the EU-VietnamFree Trade Agreement (EVFTA) is expected to take effect in the middle of theyear as most shrimp materials would be reduced to from 12-20 percent to zerotax. Imported tax for processed shrimp will also be lowered to zero after sevenyears. Meanwhile, tra fish will enjoy an import tax of zero after three years.
The US, the second biggest importer of Vietnamese shrimp, is expected to havehigh demand. VASEP recommends local businesses focus on processed products withhigh added value as well as changing packaging process to suit the retailsegment.
In addition, if the COVID-19 pandemic is basically resolved by the end of thesecond quarter and the world market re-opens, Vietnamese shrimp can takeadvantage of opportunities. Shrimp exports tend to be better when import andconsumption demand increase, making export prices recover. VASEP forecasts thatshrimp export value could recover and even increase by 3-4 percent compared to2019, reaching 3.45-3.5 billion USD.
For seafood products, the 35 percent reduction in oil prices compared to theend of 2019 has led fishermen to ramp up their activities. However, someseafood products, especially tuna, are still in short supply due todifficulties in importing raw materials due to the COVID-19 outbreak. Manybusinesses still receive orders for canned tuna but lack the raw materials forexport processing.
VASEP predicted that seafood demand in China, the Republic of Korea and Japanwould be reduced while the canned segment would increase. Firms should focus oncanned seafood products with suitable prices to meet increasing demand frommarkets affected by the pandemic, the body said.
However, due to the impact of social distancing and the shortage of domesticraw materials, it will be difficult for seafood enterprises to increase exportsin the second and third quarters this year.
Tran Dinh Luan, General Director of the General Department of Fisheries, saidthe industry would work with localities to improve breeds’ quality byintensifying inspection on conditions and granting certificates forestablishments producing aquatic breeds. It will also supervise to ensure foodsafety and build an electronic traceability system for production, processingand export chains.
The Ministry of Agriculture and Rural Development (MARD) recommended seafoodprocessors continue to diversify frozen products and increase exports tomarkets which are being affected by COVID-19.
MARD’s Deputy Minister Phung Duc Tien said they had asked management agenciesand associations to have plans to meet with increasing demand post-pandemic./.
VNA
