Covid-19 causes tra fish export disruptions

CAN THO – The coronavirus pandemic has caused disruptions to Vietnam’s tra fish supply chain. Local tra fish exporters recorded delays or cancelations for 20%-40% of their export orders.

A worker processes tra fish for export. Local tra fish exporters recorded delays or cancelations of 20%-40% of their export orders – PHOTO: TRUNG CHANH

The global spread of Covid-19 has pushed down Vietnam’s tra fish exports to various source markets, Tran Dinh Luan, head of the Vietnam Directorate of Fisheries, said at a conference discussing the production and consumption of tra fish amid Covid-19 on May 7.

He added that tra fish exports to China in the first quarter of the year had plunged by 48% over the same period last year. Exports of the fish to the European Union and the United States fell by some 47% and 19%, respectively.

According to To Truong Lan, vice general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), the pandemic has wreaked havoc on the local tra fish sector in terms of production, processing and export activities.

Many import partners have asked local tra fish exporters to delay or cancel 20%-40% of their signed orders. These requests mainly came from importers in the European and Chinese markets, followed by those in the United States, Lan noted.

The pandemic has also affected payments for local exporters by trading partners overseas. Local exporters have encountered woes in cash flow due to importers’ refusal to pay or delays in making payments.

Further, the signing of new orders is not as smooth as in previous years, Doan Toi, chairman and general director of Nam Viet JSC, explained at the event.

Athough the local tra fish sector has taken a hit, the Directorate of Fisheries said that the supply chain disruptions would be short-lived, and forecast that the sector will recover from the third quarter. Outbound sales to the Chinese market alone are expected to bounce back by the end of May.

However, according to the VASEP representative, it is uncertain whether the E.U. and U.S. markets will recover in the second quarter. She predicted that tra fish export turnover this year will likely decline and stressed that high inventories of tra fish at local firms must be addressed.

To do so, Lan suggested local exporters focus on marketing and tapping new potential markets such as those in the ASEAN, India and Pakistan.