Vietnam looks to develop new markets for tra fish

Farmers are seen harvesting tra fish from a pond. Vietnam looks to develop new markets for tra fish – PHOTO: TTXVN

Vietnam’s tra fish is facing many challenges in terms of market development, especially in light of the current U.S.-China trade war, a VietnamPlus news report stated.

According to the European Union (EU) statistics agency, Eurostat, Vietnam's tra fish exports, particularly frozen tra fish fillets shipped to the EU, have tumbled since 2010. The year 2010 saw Vietnam ship 220,000 tons of frozen tra fish fillets, but this dropped to some 75,000 tons last year.

The local news site quoted Dr. Paul S. Valle, an expert from Norway, as saying that tra fish products in general have encountered many difficulties in the EU market and face fierce competition with cheaper fish products.

Market access for tra fish is also difficult due to the spread of inaccurate information and allegations, such as tra fish production having a negative impact on the environment, raising concerns in the industry and discouraging consumption.

As VietnamPlus reported, some Vietnamese living in EU countries have complained that tra fish products exported by Vietnam to the market neither looked nor tasted good. EU consumers had initially sampled the product because of the low price but were left with the impression that tra fish products are cheap, of poor quality and have low added value.

With regard to the U.S.-China trade war, Dr. Nguyen Tien Thong from Nha Trang University noted that most of China’s fish and seafood products exported to the United States are subject to a new tariff rate of 25% rather than the previous rate of 10.2%.

According to Thong, under the previous tax rate, the average export price of Vietnam’s seafood products was higher than that of China. However, as the United States has slapped a higher rate on Chinese seafood products, Vietnam’s seafood products have become more competitive in terms of price.

As a result, the United States’ seafood imports from China have started to decline, and China may need to increase domestic consumption and boost sales in other markets, including Vietnam.

As global supplies of fish are forecast to pick up, changing the market development strategy is important for the long-term development of Vietnam’s tra fish farming and processing industry.

According to Dr. Valle, Vietnamese seafood exporters should seek new markets. Some potential markets are Mexico, Brazil and Colombia.

Vietnam needs to build a promotion strategy beforehand to better understand and approach customers based on their tastes and preferences, Dr. Valle said.

Thong noted that finding new markets is necessary under the current conditions and helps reduce risks in traditional markets, though the EU and the United States are still the top markets. Instead of increasing export volumes, Vietnam should work to win over EU and American consumers with quality products.

According to Dr. Gudmundur Stefansson from Iceland, Vietnam should diversify its tra fish products to meet the needs of different market segments. Firms should also identify target segments, exploit market niches and boost brand building and promotion based on sustainable and environmentally friendly development requirements.