Pangasius fillets are proccessed at a factory in Dong Thap Province. VASEP is concerned that weakening demand from abroad is putting seafood producers on the line. (Photo: VNA) Hoang Trung Dung, chairman of the Rosa Bonita Company, reveals that his firmparticipated in the national programme "Vietnam Grand Sale 2022" inDecember to boost sales, but got little results because of weak demand.
"We offered big discounts in the late months of the year to boost salesbut it didn't work. Domestic demand now is much lower than in the previousyears," said Dung.
Nguyen Hoai Nam, deputy general secretary of the Vietnam Associationof Seafood Exporters and Producers (VASEP), shares Dũng's view, saying thatseafood exports reached just 780 million USD in November and 785 million USD inDecember, down 14% and 13% year-on-year, respectively.
"The seafood industry is facing a plunge in orders from abroad. Workers inthe industry have had to either work in shifts or face redundancy sinceQ4/2022," said Nam.
Hoang Van Cuong, vice president of the National Economics University, isconcerned that 2023 would be a tough year for Vietnamese firms as globaldemand is weakening.
"Orders are falling steadily, leading to job cutbacks in the late monthsof 2022. The situation would remain tough in 2023," said Cuong.
Cuong believes that the expiration of many favourablepolicies this year would add to their woes as they have to pay backtheir old debts which were extended to 2023 under the policies.
In the face of the situation, the vice president urges the Government toreinstate the expired policies and expand the scope of beneficiaries to liftthe debtors out of hardship.
"The favourable policies should be kept in place this year. Additionally,their scope should cover more beneficiaries," said Cuong.
Dung opines that the policies should focus on small- and medium-sizedenterprises and involve a debt extension of about three years to give themmore time to recover.
VASEP deputy general secretary calls for preferential bank loans to helpseafood producers stay afloat amid the weakening demand. He saysthat interest rates are rising steadily to the detriment of theirprofitability.
"Seafood producers need preferential bank loans to stand fast during thistough time," said Nam.
He also calls for governmental measures to improve the local businessenvironment and help local firms move up in the regional competitive rankings.
“Regulations on the business environment have shown cracks in recent years, tothe concern of many firms. As such, the authorities need to double down ontheir effort to enhance the business environment," said Nam.
The national census shows that 528 firms have been hard-hit by falling ordersso far, of which 65.3% are FDI-financed. About 637,500 workers have begun tofeel the pinch of the ensuing economic downturn.
Of the workers, 53,674 have lost their jobs, 359,087 have faced reducedworking hours, 22,679 have been temporarily removed from the payroll, and35,081 have had their labour contracts suspended. The rest have been laidoff unofficially by taking unpaid time off./.
VNA
