Vietnam's seafood exporters setting up basis for EVFTA boons

Vietnamese seafood producers are developing their material in a sustainable way to make use of incentives for rising exports to the EU market.

1497p9 seafood exporters setting up basis for evfta boons
Workers process frog for export to the EU at a factory in the southern province of Long An. Photo: VNA

Accounting for about 5 per cent of the world’s shrimp market share and 19 per cent of Vietnam’s shrimp export turnover, Minh Phu Seafood Corporation is the country’s biggest exporter of the product. With 20 per cent of its exporting turnover entering the EU market, Minh Phu is expecting to benefit significantly from the EU-Vietnam Free Trade Agreement (EVFTA).

“We hope that the EVFTA coming into effect soon will help us reach the target of consolidated export turnover of $709 million with 63,000 tonnes of shrimp in 2020,” Le Van Diep, deputy general director of Minh Phu, told VIR.

Over the years, the EU has always been a highly demanding market for Minh Phu. “Under the deal, the requirements of origin and sustainable elements will be very high. Therefore, since late last year, we have invested more in technology in order to offer more products which answer the demand,” Diep said.

The technology that Diep refers to is called “2, 3, 4 technology” – meaning two feeding periods, three harvesting periods, and four principles of shrimp breeding namely no disease, no antibiotics, clean water, and an isolated feeding environment.

“The technology helps us to exploit the feeding area with the highest productivity while protecting the environment, ensuring Vietnamese-made shrimp of the highest quality the European market,” Diep added. “This technology has also been applied for both the groups’ feeding facilities and those of farmers that we co-operate with. We aim to increase self-provided material from 20 to 50 per cent.”

Meanwhile, shrimp producer Viet Uc Seafood Corporation, has also paid more attention to sustainability. “We are striving to build the trademark of Vietnamese shrimp by using advanced technologies of automatic feeding, membrane technology, automatic measurement, and sustainable inventions such as a biofloc farming process, biological culturing process, and circulating water treatment,” Luong Thanh Van, president and chief executive officer, told VIR.

According to Van, Viet Uc will indirectly benefit from the EVFTA when the demand of Vietnamese-originated shrimp increases.

“The EVFTA creates advantages for Vietnam’s seafood to compete with its rivals. To welcome the chance of better supply, since the middle of 2019 we have built two new shrimp seedling facilities in the northeastern province of Quang Ninh and the Mekong Delta province of Soc Trang, raising the number of our facilities of this type to nine nationwide, with a capacity of 50 billion breeding shrimps,” Van said.

Besides the two facilities, Viet Uc also boasts three feeding facilities, providing 25,000-30,000 tonnes of shrimp feed to serve both domestic and export demand. Particularly, the corporation has just invested millions of US dollars in 104 hectares of catfish hatching using high technology. “We are one of four companies joining in the three-level catfish hatching chain implemented in the Mekong Delta province of An Giang, aiming to improve the quality of breeders,” Van added.

An Giang has 1,530ha of farming with a productivity of nearly 441,000 tonnes per year. To recover the industry after COVID-19 and get ready for the EVFTA, the province has called for investment in the sustainable farming of catfish using high technology.

 

Among the companies responding to the province’s call, Nam Viet Corporation (Navico) has also spent VND4 trillion ($173.9 million) on 600ha of catfish farm. “Our entire catfish farm uses modern equipment, nano-aeration technology, and a bakture catalyst for water treatment. With this technology, our farm does not discharge waste water into the environment, and does not need to dredge sediment via physical methods,” said Le Doan Toi, general director of Navico. “We hope that this will be a good foundation for us to benefit from the EVFTA.”

Currently, the EU market has been steadily reopening after coronavirus lockdowns. The EVFTA promises to bring Vietnam’s seafood companies good prospects, particularly when their rivals from India, Ecuador, and Indonesia are still suffering from supply chain disruption due to the pandemic.

“To grasp the chance, enterprises need to be honest with the rules of origin of the agreement. Along with finding and developing local raw materials and from FTA partners, businesses need to attract foreign investment and improve production technology and product quality, as well as join the regional supply chain,” said Nguyen Hoai Nam, deputy general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP).

According to Nam, the EVFTA also requires an active fight against illegal, unreported, and unregulated fishing. “This is an urgent and important task for Vietnam to ensure compliance with the terms in the EVFTA,” he explained.

The data from the VASEP shows that the EU is the second-biggest import market of Vietnam’s seafood, accounting for 18 per cent of Vietnam’s total seafood export turnover, in which shrimp holds 22 per cent and catfish accounts for 11 per cent.

When the EVFTA comes into effect this year, about 50 per cent of assorted tariffs for aquatic products will be removed, while the rest will be omitted within three to seven years.

Meanwhile, Bui Kim Thuy, country representative for Vietnam at the US-ASEAN Business Council told VIR, “The EVFTA is a wide gate to Vietnam’s seafood sector while some rivals in the EU market have not made any FTAs with the bloc. Moreover, producers are still able to keep the initial origin for a good batch exported to many different countries in the region.” VIR

Phuong Hao

How will seafood companies fare this year?

How will seafood companies fare this year?

Analysts believe that Vietnam’s seafood industry will face difficulties until the end of June.

Yellow card causes big losses to Vietnam’s seafood exports to EU

Yellow card causes big losses to Vietnam’s seafood exports to EU

The average loss for each container of shipments to the EU due to the EC’s yellow card is 10,000 euros, according to a source.

 
 

Other News

.
Moving from former adversaries to trusting and valued partners
Moving from former adversaries to trusting and valued partners
BUSINESSicon  07/07/2020 

Through candid dialogue, mutual respect, and a strong commitment to succeed by the leadership of both countries, Vietnam and the United States created a comprehensive partnership that identifies areas for both countries to work together.

EVFTA expected to give a lift to real estate sector
EVFTA expected to give a lift to real estate sector
BUSINESSicon  06/07/2020 

Many segments of the real estate market are soon expected to benefit from the EU-Vietnam Free Trade Agreement, which takes effect in August.

Whether Apple to build nest in Vietnam?
Whether Apple to build nest in Vietnam?
BUSINESSicon  07/07/2020 

Foxconn’s rush expansion in Vietnam raise nosy that whether Apple will choose the country as the place to build nest.

American groups make progress across Vietnam
American groups make progress across Vietnam
BUSINESSicon  06/07/2020 

Vietnam, as one of the fastest-growing economies in the ASEAN bloc, is becoming more appealing to American investors.

A dynamic and powerful ASEAN from the German perspective
A dynamic and powerful ASEAN from the German perspective
BUSINESSicon  06/07/2020 

Possessing key features that represent a snapshot of one of the most diverse, fastest-growing, and competitive regions, the ASEAN is an attractive economic region for not only German enterprises but also other European ones to invest in. 

Delving into specifics of amended business laws
Delving into specifics of amended business laws
BUSINESSicon  06/07/2020 

Businesses and investors are expected to access new positive changes when the amended Law on Investment and the amended Law on Enterprises take effect from January 1 next year.

Rays of sunshine in aviation clouds
Rays of sunshine in aviation clouds
BUSINESSicon  06/07/2020 

Amid serious impacts of COVID-19, there are hopeful points for the aviation sector on the back of the EU-Vietnam Free Trade Agreement.

Trade kickstart with distinctive solutions
Trade kickstart with distinctive solutions
BUSINESSicon  06/07/2020 

Vietnam is boosting its diplomatic activities in hope of attracting more investment and expanding its trade in the global market, with many of the country’s major partners about to open their doors to the world again.

EuroCham proposes Gov’t to cut 50 per cent of registration fee for imported cars
EuroCham proposes Gov’t to cut 50 per cent of registration fee for imported cars
BUSINESSicon  06/07/2020 

The European Chamber of Commerce in Vietnam (EuroCham) proposed the Government to apply the 50 percent registration fee reduction to all automotive assembly firms, importers and dealers of new vehicles.

Shares to correct amid lack of positive news
Shares to correct amid lack of positive news
BUSINESSicon  06/07/2020 

The benchmark VN-Index on the Ho Ch Minh Stock Exchange (HoSE) gained 0.62 per cent to close Friday at 847.61 points.

P2P firms in Vietnam waiting for a sandbox
P2P firms in Vietnam waiting for a sandbox
BUSINESSicon  06/07/2020 

Peer-to-peer (P2P) lending companies expect that the sandbox for fintech would eliminate unscrupulous businesses and help the market grow significantly.

Business outlook gloomy for firms based in Old Quarter of Hanoi
Business outlook gloomy for firms based in Old Quarter of Hanoi
BUSINESSicon  06/07/2020 

Many business owners in Hanoi’s famous Old Quarter are becoming increasingly concerned about the decline in customers, causing their revenue to sharply decrease, and resulting in many stores closing their doors following COVID-19 epidemic.

Auto dealers deemed main beneficiaries of registration fee cut
Auto dealers deemed main beneficiaries of registration fee cut
BUSINESSicon  05/07/2020 

Auto dealers have proved to be the biggest beneficiaries of the Government's move to introduce a 50% cut in car registration fees, and not car buyers, as expected, 

Nine more expressway contractors suspected of construction violations
Nine more expressway contractors suspected of construction violations
BUSINESSicon  05/07/2020 

Nine more former contractors have been accused of irregularities in the construction of a 139-kilometer-long expressway whose severe deteriotion was reported shortly after its opening in central Vietnam.

VASEP decries taxes on semi-processed and processed seafood
VASEP decries taxes on semi-processed and processed seafood
BUSINESSicon  05/07/2020 

Tax agencies have slapped many firms with a corporate income tax on semi-processed seafood products at 20%, while their products for exports or domestic consumption that are mainly processed, 

Domestic property market faces uncertainty
Domestic property market faces uncertainty
BUSINESSicon  05/07/2020 

The domestic real estate market is hoped to have growth in the fourth quarter of this year and before the Lunar New Year 2021 if, by this year-end, the domestic economy is restored to levels from before the COVID-19 pandemic.

Hanoi moves towards approving construction of third Aeon Mall
Hanoi moves towards approving construction of third Aeon Mall
BUSINESSicon  05/07/2020 

The proposed construction of a parking lot and the Aeon Mall Hoang Mai Trade centre will soon be decided upon by the Hanoi People's Committee as Prime Minister Nguyen Xuan Phuc has approved the adjustment of the city's construction planning.

Pork and oil prices key to keeping inflation in VN under control: experts
Pork and oil prices key to keeping inflation in VN under control: experts
BUSINESSicon  05/07/2020 

With huge inflation pressure on the way in the remaining months of this year, a close watch must be kept on the prices of key products like oil and pork to hit the goal of keeping inflation below 4 per cent, experts have said.

Market stagnant, real estate firms struggle
Market stagnant, real estate firms struggle
BUSINESSicon  07/07/2020 

Real estate firms have had to struggle to survive during the COVID-19 pandemic, which has caused the loss of trillions of dong and job losses to 75-80 percent of workers in the field.

Vietnam’s outward investment rebounds
Vietnam’s outward investment rebounds
BUSINESSicon  07/07/2020 

Outward investments, which fell for a short time because of Covid-19, resumed again after the social distancing policy ended.

 
 
 
Leave your comment on an article

OR QUICK LOGIN