Vietnam’s seafood export turnover reached nearly USD 4.5 billion in the first nine months of this year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
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 USD 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 neighboring 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 USD 700 since early this month.
