Seafood businesses assess that the decline and disruption of orders are more severe than during the peak of the Covid-19 pandemic.
Over the past five months, seafood exports have continued to decline by double digits compared to last year, reaching only nearly $3.37 billion, a decrease of almost 28%; export orders have decreased by 20-50%, according to a document sent to the Ministry of Planning and Investment by the Vietnam Association of Seafood Processing and Export (VASEP).
Businesses in the industry also reported that, while the consumer market is plummeting, export prices have fallen sharply, and input costs and bank interest rates continue to add to the burden.
Therefore, the market outlook at this time and in the short term is not very bright. Businesses are worried about the risk of a severe shortage of raw materials (fish, shrimp) in early 2024 - the time when the market recovers because shrimp farmers are exhausted. In addition, many businesses that have suffered losses now may not be able to overcome them.
"Businesses all confirm that the situation is more difficult than even the peak of the Covid-19 pandemic," VASEP stated.
Exports this year are expected to reach only $9 billion, nearly $2 billion lower than last year.
To help businesses in the industry overcome difficulties, VASEP proposes that the Government "act immediately". The organization particularly emphasizes reducing interest rates, capital, and credit, as these are currently the most pressing bottlenecks for the industry.
For example, VASEP proposed that the Government adjust USD loan interest rates to below 4% and VND loan interest rates to below 7% to support export businesses. From the third quarter of 2022 to the present, USD interest rates have increased sharply from 2.2-2.8% to 4.1-4.9%, and in some cases even exceeded 5%.
VASEP proposes considering a special preferential credit package for small-scale aquaculture farmers to have access to bank loans at reasonable interest rates; and a debt deferral of 4-6 months for businesses.
The association also recommended an early stimulus package of 10 trillion VND for aquaculture in the Mekong Delta, targeting export businesses that are genuinely purchasing and stockpiling raw materials from now on for export in the next 3-6 months and in the first quarter of 2024.
"Implementing early stimulus measures will give aquaculture farmers peace of mind to continue farming instead of abandoning their ponds," VASEP stated.
In fact, at the conference in April, the Prime Minister instructed the State Bank of Vietnam to study a 10,000 billion VND package to support businesses in the forestry and fisheries production and processing industries.
In addition to these issues, to facilitate business operations, VASEP recommends that solutions be implemented soon to reduce business costs through tax policies, fees, social insurance contribution rates, and payment schedules.
Duc Minh
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