Vietnam: Seafood industry cramped by material shortage

 

Shortage of raw material in Vietnam

This year, Vietnam’s seafood industry is able to achieve export target of US$4.5 billion, however, it still is facing a raw material shortage.

The shrimp and tra fish prices have been skyrocketing, while processing factories cannot purchase enough materials and run just 50% of capacity.

Meanwhile, the country’s shrimp and tra fish export have been increasing, but its shrimp and tra fish output is not increasing accordingly.

According to Nguyen Xuan Nam, general director of Hai Vuong Co.Ltd, flooding in central in May and June caused a decline shrimp and tra fish output. Many processing factories had to import material to maintain their operations and jobs for over 2,000 workers, he added.

Processing factories in the central region are operating 30-40% capacity due to material shortage.

Supply has also dropped because many fishermen are reluctant to go fishing offshore. Natural disasters such as typhoons and floods often occurring in Central Vietnam also largely affect seafood export.

According to Vietnam Association of Seafood Exporters and Producers (VASEP), exploited seafood output will face difficulties to achieve 2.1 million tons per year in next years.

In past years, many factories had to import material around 140,000 – 150,000 tons of seafood of different kinds each year, worth $300-320 million.

Japan is the biggest export market for Vietnam, however, Vietnam also has to import material from Japan.

VASEP said that if seafood industry just replies on domestic material, seafood export is able to achieve maximum $4 billion per year only.

Seafood processing factories need to import around 650,000 tons of material in next years, an increase of four times compare to 2010.

To increase seafood export turnover by 2020, factories need to import $2 billion of seafood material.

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