The fisheries industry has overcome challenges in export markets, but it needs strong effort to ensure sustainable growth
By staff writers
The fisheries industry ranks third in bringing in foreign currency, with crude oil first and garments second. After years of development the industry has turned Vietnam into a leading seafood exporter, especially of shrimp and tra and basa fish.
Ministry of Fisheries figures have shrimp and tra and basa fish as the industry's top two exports. Shrimp exports last year generated half of the US$2.4 billion earned from exports, and tra and basa fish US$232 million.
However, the industry has been facing tough challenges internationally. Its fast growth has led to problems in quality management, and Vietnamese seafood has faced technical barriers put up by importing countries, such as the strict food hygiene and safety standards set in the EU and recently in Japan.
Exporters have also been facing anti-dumping suits in the U.S. They have found it difficult to continue shrimp exports to America due to the requirement for bonds to be paid before sending export shipments. An anti-dumping duty is another hurdle.
Due to the anti-dumping duties and technical barriers, Vietnam's fisheries exports last year earned US$2.35 billion against a target of US$2.6 billion. Fisheries Minister Ta Quang Ngoc says full resumption of exports to the U.S. can only become a reality when businesses no longer suffer from the fallout of anti-dumping suits. "Solving the problem of anti-dumping can also help boost the prospects for export to other markets," Ngoc says.
The Ministry of Fisheries has identified other problems facing the industry. One of these is the unsuitable raw fish. Without quality raw materials, processors cannot ensure food safety and hygiene standards despite their modern processing facilities.
Making changes
The ministry says that to deal with these challenges, the industry should try to diversify markets and improve the quality of its products. A stable market structure can help businesses avoid risks from heavy dependence on one market, while better quality can give them an edge over competitors. In this respect, the industry has made strong efforts in promotion and market expansion, and reaped some initial success in new markets such as the Middle East, Africa and Eastern Europe.
Businesses have been successful, too, in selling tra and basa fish to neighboring countries like Cambodia and China. For example, Cai Doi Vam Fisheries Import-Export and Trading (Ca Mau Province) has been able to export shrimp to Greece, Agifish (An Giang Province) to sell tra and basa fish to Spain, Switzerland, Belgium and Taiwan, and Hai Vuong Co. (Khanh Hoa Province) to export fish to Japan, Russia, Singapore and the Netherlands.
Given the U.S. anti-dumping suits, businesses have been working hard to diversify export markets. Vietnam Fisheries Association says tra and basa fish exports to the U.S. account for less than 10% of the total export volume. Sixty percent is sold to the EU and the other 30% to Asian countries, Mexico and Australia.
Businesses have not neglected the local market, promoting tra and basa fish as a healthy, nutritious food. Domestic fish consumption now takes 20% of the total production in the Mekong Delta.
Vietnamese seafood is exported to some 80 countries and territories. Businesses have also tried to tap new markets, such as Laos, Papua New Guinea, Sri Lanka, Samoa, the United Arab Emirates and Burundi. The ministry has told all State agencies to study carefully regulations in importing countries in order to help businesses overcome barriers.
Positive signs
Despite so many challenges, the fisheries industry seems to have seen the light at the end of the tunnel when, in June, U.S. and Japanese importers began to resume awarding orders. Nguyen Van Kich, director of Cafatex in Can Tho Province, says both Japan and the US. markets are facing a shortage.
In the U.S. market, due to the bond requirement imposed by U.S. customs on shrimp shipments imported from countries subject to anti-dumping duties, including Vietnam, U.S. suppliers do not have enough product to meet demand. So, they have to resume imports from Vietnam and share the bond payment with Vietnamese exporters.
As for Japan, after a long time of waiting for lower prices, Japanese importers have begun to return to buying Vietnamese seafood because of a shortage of product. Japan has overtaken the U.S. to become the top market for Vietnamese seafood, contributing export revenues of US$500 million in the first eight months.
The Ministry of Trade has forecast that seafood exports to Japan this year could reach US$800 million. Last year, exports to that country were US$770 million, accounting for 32% of total seafood export revenues.
In the EU, there is a great demand for fish, especially white flesh species. The market is short of 4 million tons a year, while Vietnamese tra and basa fish have strong advantages, such as sweet flesh, moderate fat and the great potential for expanding farming. Exports to the bloc in the first six months rose 36.8% on a year ago. Main export items are frozen fish and shrimp.
Businesses think that the rising demand for seafood in the global market is a favorable condition for the Vietnamese fisheries industry. Shrimp production in Thailand and Indonesia is falling, while India's shrimp exports to the U.S. are at a disadvantage due to high anti-dumping duties. Meanwhile, Vietnam has a strong advantage in the production of shrimp, especially the large-size species.
Sustainable
Quality and hygiene are a matter of life and death for the sustainable development of the industry. Deputy Minister of Fisheries Nguyen Thi Hong Minh says that to secure sustainable growth, fisheries businesses should try to overcome their weaknesses, especially product quality. Businesses should also pay great attention to marketing. "In the current situation of stiff competition, marketing should be professionalized. It is not sufficient to think that marketing is just to join trade fairs and spend small amounts of money for promotion," she says.
Minh says that to ensure sustainable development for the industry, several things should be done. First, efforts should be made to build strong cooperation among all involved in the business, such as fisheries farmers and processors, and fisheries feed, chemical and packaging producers. Industry standards should be upgraded to international standards and all fisheries producers must apply these standards.
Another important task is to build a common brand for some fisheries items and to promote them in the global market. In this respect, tra and basa fish trading businesses have chosen for high-quality tra fish a brand name of TQP, for "top-quality pangasius from Vietnam."
To help the industry on its path toward sustainable development, the Government has many preferential policies in terms of credit, technology and quality improvement. It has banned the use of prohibited chemicals in fisheries production and unhealthy competition practices, and increased inspection activities. Also, farmers are guided to develop safe aquaculture areas and to use substitutes for the banned chemicals.
Fisheries traders say that to overcome technical barriers, more effort is needed from both fisheries farmers and processors. "Without these coordinated efforts, the competitive edge of Vietnamese tra and basa and shrimp will be eroded," Buu Huy, director of Afiex says.
In this respect, the Vietnam Association of Seafood Exporters and Processors has identified the building of quality fisheries products as one of its main tasks. Ho Quoc Luc, association chairman, says, "Product safety has become a competitive factor between seafood exporting countries and between seafood businesses as well. Without a solid alliance (between farmers, processors and traders), the Vietnamese fisheries industry will have to pay a dear cost, both in terms of the economy and the environment."
One effort of Vietnamese businesses to improve product quality is the recent setting up of an alliance of clean fish farming businesses in An Giang Province, the kingdom of tra and basa fish farming in Vietnam. The alliance, the first of its kind in Vietnam, has the name Agifish Bio Pangasius Union. It groups members that have applied internationally recognized standards in fish farming and processing, including breeding fish producers, fish farmers, fisheries chemical suppliers, feed providers and fisheries processors.
The alliance aims to help fish farming develop on a sustainable basis, balance demand and supply, ensure the production of fish that meet strict standards in importing markets, and protect the environment. It also hopes to ensure the benefits for the fish farming community and build a good image of Vietnamese fish in the international market.
With strong exports in recent months, averaging US$270 million in August and September, the Ministry of Fisheries believes that Vietnam could reach the fisheries export target for this year and even surpass it. Exports in the first nine months alone rose 14.5% year-on-year to more than US$1.9 billion. "The target will be achieved if exports over the rest of the year can reach an average US$200 million a month," Minister Ngoc says.
Fisheries industry target 2005
Output 3.3 million tons
- From fishing 1.94 million tons
- From aquaculture 1.36 million tons
Export earnings $2.5 billion
(Ministry of Fisheries)
http://www.saigontimesweekly.saigonnet.vn/data/focus_cover_story.htm
By staff writers
The fisheries industry ranks third in bringing in foreign currency, with crude oil first and garments second. After years of development the industry has turned Vietnam into a leading seafood exporter, especially of shrimp and tra and basa fish.
Ministry of Fisheries figures have shrimp and tra and basa fish as the industry's top two exports. Shrimp exports last year generated half of the US$2.4 billion earned from exports, and tra and basa fish US$232 million.
However, the industry has been facing tough challenges internationally. Its fast growth has led to problems in quality management, and Vietnamese seafood has faced technical barriers put up by importing countries, such as the strict food hygiene and safety standards set in the EU and recently in Japan.
Exporters have also been facing anti-dumping suits in the U.S. They have found it difficult to continue shrimp exports to America due to the requirement for bonds to be paid before sending export shipments. An anti-dumping duty is another hurdle.
Due to the anti-dumping duties and technical barriers, Vietnam's fisheries exports last year earned US$2.35 billion against a target of US$2.6 billion. Fisheries Minister Ta Quang Ngoc says full resumption of exports to the U.S. can only become a reality when businesses no longer suffer from the fallout of anti-dumping suits. "Solving the problem of anti-dumping can also help boost the prospects for export to other markets," Ngoc says.
The Ministry of Fisheries has identified other problems facing the industry. One of these is the unsuitable raw fish. Without quality raw materials, processors cannot ensure food safety and hygiene standards despite their modern processing facilities.
Making changes
The ministry says that to deal with these challenges, the industry should try to diversify markets and improve the quality of its products. A stable market structure can help businesses avoid risks from heavy dependence on one market, while better quality can give them an edge over competitors. In this respect, the industry has made strong efforts in promotion and market expansion, and reaped some initial success in new markets such as the Middle East, Africa and Eastern Europe.
Businesses have been successful, too, in selling tra and basa fish to neighboring countries like Cambodia and China. For example, Cai Doi Vam Fisheries Import-Export and Trading (Ca Mau Province) has been able to export shrimp to Greece, Agifish (An Giang Province) to sell tra and basa fish to Spain, Switzerland, Belgium and Taiwan, and Hai Vuong Co. (Khanh Hoa Province) to export fish to Japan, Russia, Singapore and the Netherlands.
Given the U.S. anti-dumping suits, businesses have been working hard to diversify export markets. Vietnam Fisheries Association says tra and basa fish exports to the U.S. account for less than 10% of the total export volume. Sixty percent is sold to the EU and the other 30% to Asian countries, Mexico and Australia.
Businesses have not neglected the local market, promoting tra and basa fish as a healthy, nutritious food. Domestic fish consumption now takes 20% of the total production in the Mekong Delta.
Vietnamese seafood is exported to some 80 countries and territories. Businesses have also tried to tap new markets, such as Laos, Papua New Guinea, Sri Lanka, Samoa, the United Arab Emirates and Burundi. The ministry has told all State agencies to study carefully regulations in importing countries in order to help businesses overcome barriers.
Positive signs
Despite so many challenges, the fisheries industry seems to have seen the light at the end of the tunnel when, in June, U.S. and Japanese importers began to resume awarding orders. Nguyen Van Kich, director of Cafatex in Can Tho Province, says both Japan and the US. markets are facing a shortage.
In the U.S. market, due to the bond requirement imposed by U.S. customs on shrimp shipments imported from countries subject to anti-dumping duties, including Vietnam, U.S. suppliers do not have enough product to meet demand. So, they have to resume imports from Vietnam and share the bond payment with Vietnamese exporters.
As for Japan, after a long time of waiting for lower prices, Japanese importers have begun to return to buying Vietnamese seafood because of a shortage of product. Japan has overtaken the U.S. to become the top market for Vietnamese seafood, contributing export revenues of US$500 million in the first eight months.
The Ministry of Trade has forecast that seafood exports to Japan this year could reach US$800 million. Last year, exports to that country were US$770 million, accounting for 32% of total seafood export revenues.
In the EU, there is a great demand for fish, especially white flesh species. The market is short of 4 million tons a year, while Vietnamese tra and basa fish have strong advantages, such as sweet flesh, moderate fat and the great potential for expanding farming. Exports to the bloc in the first six months rose 36.8% on a year ago. Main export items are frozen fish and shrimp.
Businesses think that the rising demand for seafood in the global market is a favorable condition for the Vietnamese fisheries industry. Shrimp production in Thailand and Indonesia is falling, while India's shrimp exports to the U.S. are at a disadvantage due to high anti-dumping duties. Meanwhile, Vietnam has a strong advantage in the production of shrimp, especially the large-size species.
Sustainable
Quality and hygiene are a matter of life and death for the sustainable development of the industry. Deputy Minister of Fisheries Nguyen Thi Hong Minh says that to secure sustainable growth, fisheries businesses should try to overcome their weaknesses, especially product quality. Businesses should also pay great attention to marketing. "In the current situation of stiff competition, marketing should be professionalized. It is not sufficient to think that marketing is just to join trade fairs and spend small amounts of money for promotion," she says.
Minh says that to ensure sustainable development for the industry, several things should be done. First, efforts should be made to build strong cooperation among all involved in the business, such as fisheries farmers and processors, and fisheries feed, chemical and packaging producers. Industry standards should be upgraded to international standards and all fisheries producers must apply these standards.
Another important task is to build a common brand for some fisheries items and to promote them in the global market. In this respect, tra and basa fish trading businesses have chosen for high-quality tra fish a brand name of TQP, for "top-quality pangasius from Vietnam."
To help the industry on its path toward sustainable development, the Government has many preferential policies in terms of credit, technology and quality improvement. It has banned the use of prohibited chemicals in fisheries production and unhealthy competition practices, and increased inspection activities. Also, farmers are guided to develop safe aquaculture areas and to use substitutes for the banned chemicals.
Fisheries traders say that to overcome technical barriers, more effort is needed from both fisheries farmers and processors. "Without these coordinated efforts, the competitive edge of Vietnamese tra and basa and shrimp will be eroded," Buu Huy, director of Afiex says.
In this respect, the Vietnam Association of Seafood Exporters and Processors has identified the building of quality fisheries products as one of its main tasks. Ho Quoc Luc, association chairman, says, "Product safety has become a competitive factor between seafood exporting countries and between seafood businesses as well. Without a solid alliance (between farmers, processors and traders), the Vietnamese fisheries industry will have to pay a dear cost, both in terms of the economy and the environment."
One effort of Vietnamese businesses to improve product quality is the recent setting up of an alliance of clean fish farming businesses in An Giang Province, the kingdom of tra and basa fish farming in Vietnam. The alliance, the first of its kind in Vietnam, has the name Agifish Bio Pangasius Union. It groups members that have applied internationally recognized standards in fish farming and processing, including breeding fish producers, fish farmers, fisheries chemical suppliers, feed providers and fisheries processors.
The alliance aims to help fish farming develop on a sustainable basis, balance demand and supply, ensure the production of fish that meet strict standards in importing markets, and protect the environment. It also hopes to ensure the benefits for the fish farming community and build a good image of Vietnamese fish in the international market.
With strong exports in recent months, averaging US$270 million in August and September, the Ministry of Fisheries believes that Vietnam could reach the fisheries export target for this year and even surpass it. Exports in the first nine months alone rose 14.5% year-on-year to more than US$1.9 billion. "The target will be achieved if exports over the rest of the year can reach an average US$200 million a month," Minister Ngoc says.
Fisheries industry target 2005
Output 3.3 million tons
- From fishing 1.94 million tons
- From aquaculture 1.36 million tons
Export earnings $2.5 billion
(Ministry of Fisheries)
http://www.saigontimesweekly.saigonnet.vn/data/focus_cover_story.htm
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