Seafood exports only hit more than US$8 billion despite tremendous efforts

Experts forecasts that seafood export value in the whole 2020 will only reach US$8.26-8.3 billion, down 3.8% compared to 2019. This is a considerable decline over the target of US$10 billion assigned by the industry.

Illustrative photo: Source: Internet

According to the Department of Agro Processing and Market Development (Ministry of Agriculture and Rural Development), from the beginning of the year to the end of August 2020, seafood export value reached US$5.2 billion, down 5.3% year-on-year.

Regarding key export items, Pangasius material prices in the Mekong Delta provinces in August 2020 increased slightly to about VND200 / kg compared to the previous month, rangingVND17,500-18,000 / kg for pangasius type I (700-900gram per piece). In general, the market remains slow due to the gloomy export situation with weak new orders, high inventories and low export prices.

"The Covid-19 pandemic has still had a strong influence on the import and export activities of domestic pangasius processing enterprises. It is forecasted that pangasius material prices in the Mekong Delta will continue to be stable due to the impacts of the world market by the pandemic," said Nguyen Quoc Toan, Director of Department of Agro-Processing and Market Development.

For the other key export items such as shrimp, due to the reoccurrence of the Covid-19 pandemic, the commercial shrimp prices in the Mekong Delta in August 2020 showed signs of a slight decrease compared to July 2020. Typically, in Bac Lieu, the price of frozen black tiger shrimp sized 20 pieces per kg reduced VND20,000 per kg to VND190,000 per kg, sized 30 pieces per kg decreased VND20,000 per kg to VND160,000 per kg, and sized 40 pieces per kg decreased VND10,000per kg to VND130,000 per kg.

The situation of shrimp farming from now to the end of the year will face many difficulties due to weather, climate and saline intrusion in the Mekong Delta.

Regarding seafood exports in general, the Ministry of Agriculture and Rural Development forecasts that the Covid-19 pandemic is happening in countries around the world, continuing to affect Vietnam's seafood exports to markets during the third quarter of 2020.

Many experts forecast that the seafood export value in 2020 will only reach US$8.26-8.3 billion, down 3.8% from 2019.

In addition to the disadvantages, the Department of Agro-Processing and Market Development acknowledged that Vietnamese seafood has certain advantages with competitors such as India and Ecuador thanks to faster production stability after Covid-19.

However, to achieve high profits, Vietnamese seafood exporters to markets such as the United States, the EU, China, should focus on deeply processed products with high added value such as products which can be used directly to meet new market changes.

In addition, the EU-Vietnam Free Trade Agreement (EVFTA), effective from August 1, 2020, also opens up many opportunities for Vietnamese seafood. From the beginning of August 2020, seafood exports to the EU have increased by about 10% compared to July 2020. In which, the products recording increases in exports were mainly shrimp and squid.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien assesses that the EU is an important market for seafood. In order to take advantage of the tariff preferences, seafood enterprises have prepared a standard system, international certification, updated information on processing activities and logistics to meet the commitments given in the EVFTA.

Talking to Customs News, Mr. Tran Dinh Luan, Director General of the Directorate of Fisheries (Ministry of Agriculture and Rural Development) said that in the last months of the year, the whole industry will continue to focus on developing seafood farming of key items (tiger shrimp, white-leg shrimp, pangasius) and high economic valued items towards improving commercial value and sustainable development; and drastically and effectively implementrecommendations that the EU made to Vietnam to remove the "yellow card" and towards sustainable seafood development.

The total value of imported seafood in the first eight months of 2020 reached US$1.14 billion, down 4.1% over the same period in 2019. The sources of seafood imports in the first seven months of 2020 were mainly from India (accounting for 13.8%), Norway (11.8%) and Japan (10.2%).