About one-fifth of local seafood enterprises will probably face stagnancy, and possibly even bankruptcy, this year, said a senior official of the Vietnam Association of Seafood Exporters and Processors (VASEP) in a recent meeting.
“It is very unusual that several seafood enterprises have filed for bankruptcy since early this year, and the situation is expected to worsen,” said Nguyen Huu Dung, vice chairman of VASEP at the meeting titled, “Applicable solutions in resource management and planning for the fisheries industry,” held in the Mekong Delta city of Can Tho.
“The situation has been caused by subjective reasons including the lack of effective policies to support companies and the shrinking of both foreign and local markets,” he added.
The prices of raw catfish in the provinces of the Mekong Delta, such as Dong Thap, An Giang, and Can Tho, continue to fall, with prices ranging from VND 20,000 to 21,000 per kilogram for first-grade fish, and VND 19,000 to 19,500 per kilogram for second-grade products.
“The government should change the way it operates the economy by channeling low-interest capital to save the businesses and offer tax breaks to help them boost production,” Thoi Bao Kinh Te Sai Gon newspaper quoted Dung as saying. “The arbitrary increase of charges on businesses should also be stopped.”
