Difficulties surround the seafood industry
According to statistics from the Vietnam Association of Seafood Exporters and Producers (VASEP), in the first 5 months of the year, the country's seafood exports reached nearly 3.6 billion USD, up 6% over the same period in 2023. Among the main products, squid, octopus and other fish (sea fish, freshwater fish) had lower export value than the same period last year, with a decrease of 1% and 3% respectively.
Meanwhile, shrimp and pangasius exports increased slightly, up 7% and 4% respectively. Crab products grew the most (up 84%), tuna also increased positively (22%), and shellfish exports increased by 13%.
Among the top 5 markets for Vietnamese seafood, the US is the market with the most positive growth, with an increase of 7% in the first 4 months of the year. Exports to South Korea increased slightly by 2%. Exports to China, Japan and the EU were almost the same as the same period last year.
Ms. Nguyen Thi Thu Sac, President of VASEP, assessed that in addition to geopolitical and world economic issues, the Vietnamese seafood industry is facing a shortage of raw materials for both aquaculture and natural fishing. The aquaculture industry is affected by the urbanization process, so fluctuations in land use planning for production in many localities and the unsynchronized land use planning are major challenges for both businesses and seafood farmers.
In addition, climate change is one of the most pressing environmental issues today, negatively impacting aquaculture. Specifically, prolonged hot weather has affected the ability to adapt to growth and development, reducing resistance, increasing the risk of disease, leading to poor farming efficiency.
Exploited seafood sources are also facing difficulties as resources are increasingly depleted, and production is not enough to meet demand, so additional supply must be sourced from imports. However, EU market regulations and new Vietnamese regulations related to IUU fishing are making the raw material bottleneck even more congested.
Mr. Truong Dinh Hoe, General Secretary of VASEP, also acknowledged that seafood exports in the second half of this year will continue to face significant difficulties and challenges. For the shrimp industry, the challenges are anti-subsidy and anti-dumping taxes in the US market. The cost of raw shrimp in Vietnam is still significantly higher than that of other major producing countries such as India, Ecuador, and Thailand.
For example, white-leg shrimp of 70 pieces/kg in Vietnamese ponds this year are about 15,000 - 20,000 VND/kg higher than shrimp of the same size from Thailand, 20,000 - 30,000 VND/kg higher than Indian shrimp and 30,000 - 35,000 VND/kg higher than Ecuadorian shrimp.
The challenges for the pangasius industry are that export prices are still low, the EU market consumes very slowly and with difficulty, the Chinese market is unstable, and the US market is concerned about the anti-dumping lawsuit that is entering the 20th administrative review phase. Meanwhile, the IUU "yellow card" is still a burden for seafood businesses.
Conflicts in the Red Sea have caused high freight rates, trade conflicts between countries have disrupted seafood trade flows, and large inventories in import markets have created major challenges for seafood exports at the end of the year.
Many opportunities are opened up
VASEP assessed that, in the context of many difficulties, seafood exports still grew by 6% in the first 5 months of the year, which is an encouraging result on the path of recovery and development of the industry.
VASEP forecasts that seafood exports in the first half of 2024 will reach 4.4 billion USD, up 6% over the same period in 2023. Of which, shrimp exports will reach 1.65 billion USD; pangasius exports will reach 910 million USD; tuna exports will reach 457 million USD; squid and octopus exports will reach 294 million USD; crab exports will reach 119 million USD; and shellfish exports will reach nearly 74 million USD.
The great opportunities for seafood exports are still quite positive, as VASEP leaders see them. This opportunity is particularly evident in the shrimp industry. First of all, Ecuadorian shrimp faces significant challenges, including increased inspections and refusals to label sulfites by Chinese customs, new anti-subsidy duties in the US... Indian shrimp is facing the risk of being banned from entering the US after a major shrimp production and export plant in the country became the focus of a series of allegations related to falsified documents, intentionally shipping antibiotic-positive shrimp to the US, and mistreating workers...
Another big advantage of Vietnamese seafood is the increasing demand for value-added products. At international seafood exhibitions in the US and EU this year, value-added products received special attention from customers. Vietnam also has advantages in the level of value-added seafood processing and high-skilled workers.
According to Mr. Ong Hang Van, Deputy General Director of Truong Giang Seafood Joint Stock Company, Dong Thap province, because the output of raw pangasius fish does not increase while demand increases, the price will increase. China, the largest market for Vietnamese pangasius fish, is now starting to buy high-value products.
Mr. Van expects that from now until the end of the year, the export price of pangasius will increase by 5-10%. Therefore, pangasius exporting enterprises should not rush to sign low-priced export contracts, but should calmly monitor the market situation closely to sell at better prices.
According to Ms. Nguyen Thi Thu Sac, to achieve the export target of 10 billion USD this year, seafood enterprises need to adapt and adjust their operating plans to suit the market context. In particular, enterprises need to diversify export markets to avoid dependence on one market, while increasing exports to new markets, aiming to expand and promote the development of the domestic market.
In addition, businesses need to promote product images to consumers, build image and recognition for Vietnamese seafood, and at the same time update information from markets, correctly assess the situation, thereby having the most appropriate and timely response.
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