Helping seafood exporters fulfill their targets

However, VASEP General Secretary Truong Dinh Hoe, says that the amount is just equal to half of last year’s figure and, so it seems, the sector's set export target of US$6.5 billion this year, is hard to come by.

Hoe says the main cause for concern is the impact of the global economic crisis on every market around the world.

In the past, foreign partners used to buy Vietnamese seafood on credit from the exporters but now this is impossible because Vietnamese businesses are suffering a shortage of capital. Tough competition with neighbouring countries like India and Thailand in terms of price gauging has slowed the progress of seafood consumption.

Another reason is Japan’s decision to inspect all shrimp and aquatic imports from Vietnam for Ethoxyquin residue. The Japanese market currently consumes 40 percent of Vietnam’s total shrimp exports. However, Japanese standards for ethoxyquin residue in shrimp is much lower than the permitted level elsewhere in the world.

The VASEP representative argues that restructuring capital sources has caused difficulties for seafood businesses who are unable to prove they are eligible for loans to boost production and export earnings.

Many businesses are blamed for ineffective investment and production scale expansion.

Another subjective reason, he cites, is a sharp increase in the price of feed for aquaculture in 2012, especially in recent months.

In addition, Hoe says the transport cost for each container has risen to US$700 since early this month.

In fact, ministries and agencies have tried to support seafood export businesses in coping with these difficulties. For example, businesses are now exempt from environmental protection taxes for plastic packaging.

The VASEP has recommended improving quarantine work, customs clearance and other import-export regulations. The Prime Minister and State Bank have issued decisions to help both farmers and seafood exporters gain access to loans for raising tra fish.

The Ministry of Industry and Trade (MoIT) and the Ministry of Agriculture and Rural Development (MARD) have asked Japan to adjust its standards for ethoxyquin residue to match the international standard.

The VASEP and MARD have insisted on shrimp breeders and export businesses to lower the level of Ethoxyquin residue at any cost.  

The VASEP has recommended that the MoIT direct marketing management to improve inspections and encourage factories to produce products with low concentrations of Ethoxyquin in order to maintain Vietnamese shrimp exports to the Japanese market.

In Hoe’s opinion, 65 seafood processing enterprises involved in export business are able to supply 600,000 tonnes of tra fish to the world market each year.

The VASEP has proposed to the MoIT for a tax refund from January 1, 2012 to those exporters using plastic packaging and also a reduction in transport costs to help them out of difficulties.