Seafood exports plummet
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Seafood exports to most major markets have fallen by 17-50% this year.
According to the Vietnam General Department of Customs, shipments to the U.S. fell by more than 50% year-on-year to US$284 million.
Exports to Australia were down 30% to $65 million.
Despite China’s reopening, exports to this market were worth only $279 million, 23% less than last year.
Japan, South Korea, and Thailand imported 7-17% less than last year.
Overall exports were down 28% year-on-year in the first quarter to US$1.8 billion.
Key items such as pangasius, shrimp and tuna saw 30-37% declines, while exports of crab and other products were down 2-42%.
The figures are alarming for the fisheries industry.
According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the industry is facing great challenges as global inflation has hit demand.
Fisheries output has fallen since fishermen and aquaculture businesses lack capital.
Production, raw material and labor are rising, making it harder for Vietnam’s products to take on competition from Ecuador, India, Thailand, and Indonesia in major markets.
Businesses are also in a bind because the European Commission has not lifted the yellow card it had issued to Vietnam for illegal, unreported and unregulated fishing.
VASEP expects seafood exports to only recover in the third quarter and only if there are support policies to reduce taxes, roll over loans and subsidize loan interest.
The government deferred payment of taxes (VAT, corporate income tax, personal income tax) and land rentals for a fifth time last week to help ease the burden on businesses.
It also reduced VAT to 8% though it must first be approved by the National Assembly.
Questions & Answers
Q.Which specific seafood products have seen the largest declines in export, according to the article?
Which specific seafood products have seen the largest declines in export, according to the article?
Pangasius, shrimp, and tuna exports declined by 30-37%. Crab and other products saw falls of 2-42%, indicating varied performance within the 'other products' category.
Q.What are the primary reasons cited for the challenges facing Vietnam's seafood export industry?
What are the primary reasons cited for the challenges facing Vietnam's seafood export industry?
Global inflation has reduced demand, while rising production, raw material, and labour costs make Vietnamese products less competitive. A lack of capital for fishermen and aquaculture businesses also contributes to falling output.
Q.What measures has the government taken recently to support businesses in the face of these challenges?
What measures has the government taken recently to support businesses in the face of these challenges?
The government deferred tax payments (VAT, corporate income tax, personal income tax) and land rentals for a fifth time. It also proposed reducing VAT to 8%, pending National Assembly approval.
Q.When does VASEP expect seafood exports to recover, and what conditions are attached to this prediction?
When does VASEP expect seafood exports to recover, and what conditions are attached to this prediction?
VASEP expects exports to recover only in the third quarter. This recovery is conditional on the implementation of support policies such as tax reductions, loan rollovers, and subsidised loan interest.
Reader pulse
Will exports recover in Q3?
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