In the span of 25 years, Vietnam seafood exports have experienced a remarkable 14-fold increase, soaring from $800 million in 1998 to a staggering $11 billion in 2022. These figures, announced at the 2023 VASEP Annual General Meeting and the 25th anniversary celebration of the Vietnam Association of Seafood Exporters and Producers (VASEP) in Ho Chi Minh City, highlight the industry’s significant growth and success.
Overcoming International Trade Barriers
Throughout the years, VASEP, along with its member enterprises, has navigated numerous challenges to achieve remarkable milestones. Starting with just 19 EU code-certified processing plants, VASEP has witnessed the gradual increase of seafood export revenue from $800 million in 1998 to $4.5 billion in 2008, and nearly $9 billion in 2018, ultimately reaching $11 billion in 2022. Currently, out of the 847 industrial-scale seafood processing plants, 692 have been granted the prestigious EU code certification for meeting stringent food safety standards.
This extraordinary achievement can be attributed, in part, to the proactive expansion of market opportunities through international trade promotions, trade fairs, and strategic collaborations between VASEP and member enterprises. Overcoming international trade barriers has been key to boosting exports, enhancing competitiveness, and establishing Vietnam’s solid position in the global seafood market.
The seafood industry has faced its share of challenges, including negative media campaigns and reputation issues abroad. However, Vietnamese seafood has successfully maintained its position in the world’s largest markets, such as the United States and China, despite such obstacles.
A Quieter Period for Recovery (2023-2024)
Nguyen Thi Thu Sac, Chairwoman of VASEP and General Director of Hai Nam Co., noted that 2023 represents a challenging phase for Vietnam’s seafood industry due to global economic recession, inflation, domestic production difficulties, and intense competition from Ecuador, India, and Indonesia.
In the first five months of 2023, seafood exports from Vietnam reached just over $3.2 billion, experiencing a significant decline of nearly 30% compared to the same period in 2022. All major export markets witnessed double-digit declines, with the US market plummeting by over 50%, the EU market decreasing by nearly 32%, and exports to China dropping by more than 25%. Key seafood exports, including shrimp (down nearly 36%), tra fish (down nearly 40%), and tuna (down over 30%), were significantly affected.
Both the US and Chinese markets, being crucial for Vietnamese seafood exports, experienced the most significant setbacks. The US market, influenced by high inflation, rising interest rates, bank bankruptcies, and economic challenges, impacted the consumption of Vietnamese seafood.
Forecasts suggest that seafood demand in various markets may continue to decline in the third quarter of 2023, deviating from previous expectations of recovery.
Despite these challenges, VASEP continues to address crucial issues, including the IUU yellow card and regulations related to seafood exploitation and exports to the EU market. Similar IUU-related requirements from Japan and the United States (SIMP) may extend to other markets.
Continuing to Overcome New Challenges
Chairwoman Nguyen Thi Thu Sac emphasized the increasing number and severity of upcoming challenges. The seafood industry’s goal is not solely focused on conquering new markets but also on achieving sustainable growth. This entails building a robust foundation for the entire supply chain, encompassing breeding, feed, farming technology, processing, consumption, environmental sustainability, social responsibility, and labor welfare.
The Chairwoman urged stakeholders to set their sights on new heights and aspirations, aiming not only for seafood export revenue targets of $12.5-14 billion in 2025 or $16-20 billion in 2030 but also for a reputation, quality, and strong presence of Vietnamese seafood products in the international market.
The achievements of VASEP and its members were acknowledged and commended by Phung Duc Tien, Deputy Minister of Agriculture and Rural Development. He highlighted VASEP’s vital role as a gathering point for seafood processing and exporting enterprises, with over one-third of members being industry leaders. The association serves as a crucial link between member enterprises and relevant government agencies.
Recognizing the current challenges, Deputy Minister Phung Duc Tien emphasized the impact of domestic inflation, rising production costs, and fuel price hikes on seafood production expenses, reducing competitiveness. Slowed consumption markets have led to order cancellations or delays, resulting in increased storage and logistics costs. Enterprises are struggling to access loans due to credit limits being exhausted by banks. These circumstances pose significant challenges, leading to production stagnation, raw material shortages, and inadequate investment in production, processing, and export.
In the face of these difficulties, Deputy Minister Phung Duc Tien called on VASEP to fulfill its role as a connector and facilitator between enterprises, fish farmers, and the government. This includes continuous market assessments, proposing timely solutions, and providing information to help farmers plan their production strategies effectively.
Moreover, VASEP should promptly communicate obstacles encountered in the export process to relevant ministries and agencies to facilitate swift resolutions. The association should actively propose amendments and improvements to policies, creating favorable conditions for production, export activities, while ensuring effective management and sustainable growth. Encouraging the adoption of new technologies to reduce production costs, Deputy Minister Phung Duc Tien expressed concerns about the industry’s future and emphasized the ongoing need to overcome challenges.
In conclusion
Vietnam’s seafood industry has demonstrated resilience and potential for growth. Through collaboration and concerted efforts, the industry is well-positioned to overcome emerging challenges, expand its market reach, and maintain its status as a leading seafood exporter on the global stage. Buyers interested in procuring Vietnamese seafood can find a reliable source in VASEP, which serves as a platform for trusted suppliers in the industry.