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Seafood exports surge

10 excellent shrimp exporters are honored by VASEP in 2022. Photo: T.H

Exports reach target

Congratulating the achievements of the seafood sector, Deputy Minister of Agriculture and Rural Development Phung Duc Tien said that the achievements result from overcoming a series of difficulties and challenges for the agricultural and seafood sector.

Facing difficulties in the costs of transportation and logistics, the increase in input materials, problems related to labor and capital mobilization for production, enterprises have made great efforts, increased exports, making seafood products account for greater market share.

"On the world seafood export map, Vietnam is currently the third largest exporter, accounting for over 7% market share in the world market, following China and Norway," Deputy Minister Phung Duc Tien said.

At the celebration of seafood export exceeding US$10 billion, Ms. Nguyen Thi Thu Sac, Director of Hai Nam Co., Ltd. said that this year is a successful year for seafood enterprises when achieving good results in early 2022.

This will be the motivation for businesses to overcome difficulties and achieve their goals. As for Hai Nam Co., Ltd., Ms. Thu Sac said, the company focuses on diversifying processed products, creating high added value, and meeting the requirements of fastidious export markets.

According to Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), in 2022, Vietnam's seafood exports reached the target of US$11 billion, up 25% compared to 2021. This is the record level of Vietnam's seafood sector for more than 20 years of exporting to the world market.

Ho Quoc Luc, Chairman of the Board of Directors of Sao Ta Food Joint Stock Company, said that the Seafood sector has seen advantages and disadvantages. The advantages are unexpected growth numbers. The disadvantages are the sharp decrease in production and consumption at the end of the year.

However, businesses have adjusted their strategies to flexibly overcome difficulties with the lowest cost. In which, focusing on increasing product competitiveness through optimizing processing and consumption norms; improving productivity through equipping supporting tools.

Expecting a positive outlook in the new year

Chairman Ho Quoc Luc said consumers are increasingly intelligent and have strict requirements, enterprises cannot maintain traditional business methods. This is a time of international competitiveness full of challenges, requiring agility and proactiveness.

“Enterprises must be well-equipped in respect of corporate culture, given that the corporate culture will be the most solid foundation for sustainable development and business ethics, which is the core of corporate culture. Now entrepreneurs have to memorize the content of Corporate social responsibility (CSR), Creating Shared Value (CSV), Green Economy and Circular Economy; and must attach importance to branding and operational strategies," said Mr. Ho Quoc Luc.

Regarding the problems that need to be solved for the source of raw materials for production, Ms. Nguyen Thi Thu Sac said that, in addition to the source of domestically grown materials, export production enterprises also have to import raw materials.

If the enterprises are supported by the State, they will have difficulties removed. In addition, Vietnamese seafood enterprises have a professional system of processing factories and workshops. Currently, there are more than 700 processing facilities certified by the EU and China. USDA has recognized the pangasius export industry. In addition, the number of enterprises with an international sustainability certification is increasing, meeting the requirements of the import market. "Hopefully, if supported, seafood exporters will have export turnover at the same level as in 2022," said Ms. Nguyen Thi Thu Sac.

Mr. Truong Dinh Hoe said that seafood enterprises face difficulties. This is not the difficulty of 2023 and is transferred from 2022 to 2023. “Vietnam’s macroeconomics are considered to be quite good, so it will not be affected by external factors as in 2008. In addition, the current health of enterprises will be better than the 2008 period. We should not be too pessimistic, but businesses should maintain their operation and catch opportunities,” said Mr. Truong Dinh Hoe.

Economic expert Dinh The Hien said in the first quarter of 2023 will be the most difficult period. However, the commercial banking system is stable at the end of the fourth quarter of 2022. The lending interest rates by the end of the first quarter of 2023 will lower by 10-14%. The capital for production will see positive signs in the first quarter of 2023 and will surge in the second quarter. The seafood sector is always given priority for loans by banks, while the sector’s revenue is still good, so it is forecast that next year, the capital flow into the sector will be more favorable than other sectors.