|
Seafood export faces difficulties reaching target of US$4.2 billion
If the seafood sector earns US$850 million in the fourth quarter it will fulfill its export target of US$4.2 billion. However, according to The Vietnam Association of Seafood Exporters and Producers (VASEP) this is a great challenge for the sector due to a number of difficulties.
VASEP said that seafood export in the three quarters of this year reached US$3.35 billion. Le Van Quang, vice chairman of VASEP said that currently US banks are tightening credit and US importers do not have enough capital to purchase goods, unless they buy on credit from Vietnamese businesses.
However, in current situation it is difficult for Vietnamese businesses, especially small- and medium- sized enterprises, to borrow bank loans. In addition although the credit interest rate was reduced it still remains high.
Recently the Government has allowed the Mekong Delta region to raise white claw shrimp whose value is three to four times higher than tiger prawns. This year due to the unstable political and economic situation in Thailand and China’s poor prestige in food hygiene and safety, more and more farmers in the Mekong Delta raise shrimp for export.
It requires a huge workforce to process white claw shrimp, something that the Mekong Delta region is lacking. Seafood processing and export companies said that the size of the workforce in the sector decreased by 40 percent compared to last year. Frequent power outages made many businesses cancel their orders and not sign new contracts.
Sea transport costs increased by 40percent compared to early this year while export prices did not increase, and are even expected to decrease in the near future.
Two major export markets are the US and the EU. However, the US economy is facing difficulty, causing troubles for Vietnamese seafood exporters. US investors withdrew their investment capital in the EU, devaluing the euro and pound so European importers have suffered losses. Therefore the EU market is becoming more and more difficult for Vietnamese exporters to tap.
VOV
|
