Shrimp processing plant.

Fisheries sector targets USD 10 billion exports this year

VIET NAM
Monday, February 18, 2019, 22:50 (GMT + 9)

The Vietnamese fishing sector expects its exports to reach a value of USD 10 billion by 2019, which means that the export target set for 2020 would be reached a year earlier, according to the Việt Nam Association of Seafood Exporters and Producers (VASEP).

Fishers at a beach in Mui Ne in Vietnam's south central coast. Photo by VnExpressLe Dang

VASEP chairman Ngô Văn Ích explained it would include USD 4.2 billion worth of shrimp, USD 2.3 billion worth of pangasius fish and the rest from other products, reported Viet Nam News.

He also pointed out that last year's exports generated USD 9,000 million in revenue, a figure that represents a year-on-year increase of 6% and that is in accordance with the established goal.

Tra fish exports increased 26 per cent to USD 2.26 billion, thanks to increased purchases by the US and China, and the recovery of the EU market.

However, shrimp exports decreased 8 per cent to USD 3.6 billion, mainly due to a fall in demand in markets such as the US and Canada, and higher production by competitors like India, Indonesia and Thailand, which resulted in a 15/20 per cent fall in prices.

VASEP held a conference to deploy the export plan of seafood in 2019

Last year was difficult for the industry after the European Commission imposed a yellow card warning on Vietnamese seafood for failing to make progress in fighting illegal, unreported and unregulated (IUU) fishing.

“Exports increased by just 6 per cent last year, rather low considering the sector’s capacity,” said chairman Ngô Văn Ích. “The sector can absolutely achieve growth of 10 per cent and even 12 per cent a year if it is developed in the right direction,” he added. 

“In 2019 shrimp exports are expected to be better because the US Department of Commerce recently announced the final results of the 12th period of review (POR 12), lowering the anti-dumping tariff on shrimp imports from Việt Nam,” VASEP chairman pointed out.

According to Trương Đình Hòe, VASEP’s general secretary, said shrimp, tra fish and other seafood exports were expected to reach USD 4.2 billion, USD 2.3 billion and USD 3.5 billion this year.

However, he admitted the sector also faces many challenges in terms of raw materials, competitiveness and market barriers. On that regard, he said climate change, saltwater intrusion in rivers and diseases are some of the reasons causing a shortage of raw materials while the anti-dumping duty imposed by the US and its Seafood Import Monitoring Programme also created pressure on businesses.

Besides, he said raw shrimp prices are higher than in other countries in the region and other input costs also increased, affecting Việt Nam’s competiveness.

Ích and Hòe agreed that to achieve the targets the sector would need a specific development strategy with a focus on preventing shrimp diseases, stopping the use of chemicals in aquaculture, capitalising on preferential tariffs under the Việt Nam-EU FTA, which takes effect this year, to boost exports to the EU, and importing legal seafood materials for processing for export.

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