A limited supply source of raw materials coupled with slowing market demand has been judged to be the main factor in the recent decline of Vietnamese shrimp export turnover, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Tran Van Linh, chairman of the Board of Directors of Thuan Phuoc Seafood and Trading Joint Stock Company in Da Nang city, revealed that although the firm has roughly 2,000 hectares of shrimp farming areas, mainly in the localities of Thua Thien Hue and Ben Tre, its shrimp processing factories have been facing a shortage of raw materials.
According to industry insiders, the situation can be attributed to harsh weather conditions in the Mekong Delta region, as well as Enterocytozoon hepatopenaei (EHP) disease occurring in shrimp since May.
Truong Dinh Hoe, general secretary of the VASEP, recommended that localities support farmers to contain the disease, while local enterprises have been advised to devise solutions aimed at ensuring a sufficient supply source of raw materials for processing and export activities.
With regard to the drop in demand occurring in some major markets, the VASEP has encouraged local firms to maximise preferential tariffs from the EU-Vietnam Free Trade Agreement (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the UK-Vietnam Free Trade Agreement (UKVFTA). This should be done in order to increase exports to Australia, Canada, Malaysia, Thailand, China, and the UK.
Furthermore, enterprises have also been encouraged to participate in international seafood fairs as a means of seeking additional customers and importers of Vietnamese seafood products in the time ahead.
