return icon

Vietnam's seafood industry needs to adapt to market trends

After being affected by the COVID-19 pandemic and fluctuations in inflation, the demand and trends of seafood consumption in many markets have changed, necessitating that Vietnamese seafood enterprises must adapt to these market trends, experts said.

This is the opinion of experts at a seminar on demand and trends of the seafood market after COVID-19 organised by the Vietnam Association of Seafood Exporters and Producers (Vasep) on Wednesday in HCM City.

The COVID-19 pandemic, logistics disruptions due to the Russia-Ukraine conflict and compliance with regulations on illegal, unreported and unregulated fishing (IUU) are challenges facing the seafood industry.

Le Hang, VASEP director of communications, said the world seafood market in the past five years has grown by 16 per cent with an annual import turnover of about US$148.5 billion, of which, shrimp accounted for the highest proportion and increased the most (29 per cent), while salmon increased 16 per cent, and demand for tuna was less volatile.

Meanwhile, demand from the Chinese market has jumped 71 per cent over the last five years, followed by the US with an increase of 32 per cent. Most markets increased demand, except for Japan, which decreased by 6 per cent, and Germany, which decreased slightly by 0.6 per cent.

Exporting seafood to the EU market is facing many challenges because each market in the EU bloc has its own requirements. An obstacle for seafood enterprises exporting to the EU is misunderstanding the granting of a certificate of origin and rules of origin, Hang said.

In addition, inflation is making EU consumers tighten their spending and focus on moderately priced items. The lowest EUR/USD exchange rate in 20 years also makes consumers limit spending. This causes importers to re-negotiate with exporters, which delays imports.

When inflation is too high in many countries and export prices tend to increase, consumers in those countries will tighten their spending and switch to affordable products such as frozen pangasius fillets, fish cakes, and other frozen products, Hang said.

Other challenges include stricter demands for EU market certification, and environmental and labour requirements, which can be serious problems for Vietnamese seafood producers.

To take full advantage of the EVFTA, VASEP expects more support from the Import-Export Department and the Ministry of Industry and Trade for businesses to make the most of preferential tariffs and apply the rules of origin to reduce obstacles when exporting seafood to the EU market.

The EU used to be Vietnam's largest pangasius import market, with peak sales of $511 million in 2010, accounting for 36 per cent of Vietnam's pangasius exports.

Vietnamese pangasius also accounted for 22 per cent of the market share of white fish imported to the EU. Pangasius was considered a competitor to some other white fish species in Europe.

However, in 2021, pangasius exports to the EU reached just over $106 million, accounting for 7 per cent of Vietnam's total pangasius exports. In the EU white-meat fish import market, Vietnamese pangasius only accounts for 1.6 per cent of market share.

The EVFTA, effective from August 1, 2020, brought excellent prospects for Vietnam's seafood exports, including pangasius, to this market. Accordingly, the export of pangasius products will receive tax reductions under a three-year roadmap.

Smoked pangasius exports will have tax reductions within seven years from the effective day of the agreement.

However, the advantages of tariffs did not promote an increase in pangasius exports to the EU in 2020 and 2021 because of the pandemic.

In addition, there is compliance with regulations against unreported and unregulated fishing (IUU). Four years since receiving a "yellow card", Vietnamese seafood export volume to the EU market declined by 3 per cent during 2017-2021.

The Government has pledged to come up with appropriate and effective solutions to quickly solve the "yellow card" penalty. Vietnam can then avoid the risk of receiving a "red card" and enjoy preferential tariffs and institutional changes from the EVFTA.

However, seafood exports to the EU still maintained a growth rate of 28 per cent in July and 39 per cent in the first seven months, to $829 million, compared to the same period in 2021.

Seafood exports to the US in the first seven months reached nearly $1.5 billion, up 31 per cent over the same period last year, Hang said.

Meanwhile, seafood export value to China in the first seven months grew by 71 per cent to $1 billion. 

Source: Vietnam News


Huong Pagoda crowded on the first day of spring festival 2023

Despite the cold weather, thousands of people flocked to the Huong (Perfume) Pagoda Festival in Huong Son commune, Hanoi’s outlying district of My Duc on the opening day to celebrate the new year.

Data centers: Vietnam's bright spot

Under the impact of Covid-19, many activities have moved to online platforms and amount of data uploaded has been increasing.

More Vietnamese scientists returning to home country

More Vietnamese scientists decided to return to the country with a desire to devote themselves to their homeland’s growth.

Hoang to defend WBA belt in hometown next month

Truong Dinh Hoang announced the bout on his Facebook page on February 26, though the challenger has yet to be named.

Sea tourism and expectations for a 'made in Vietnam' fleet

The number of cruise tourists accounts for only 2-3% of the total number of international visitors to Vietnam.

Hanoi’s tourism sector rakes in over VND1 trillion during Tet holiday

The capital expects to welcome roughly 332,000 visitors, including 32,000 international guests, during the Lunar New Year holiday from January 21 to January 26, with total revenue anticipated to reach more than VND1 trillion.

Stone lion statues - Symbol of stone sculpture art of Ly Dynasty

According to Buddhism, lion is the embodiment of intellectual power, but with stars on the body, the stone lions of the Ba Tam pagoda-temple also have the meaning of carrying the moving sky.

Vietnam's retail market predicted to bustle in 2023

Although 2023 is forecast to see many difficulties, experts expect this is a recovery year of the retail sector after COVID-19 pandemic as there are many signs showing the return of investors and higher demands.

Vietnam's leather and footwear industry targets US$27 billion in 2023 exports

The leather and footwear industry is striving to reach US$27 billion in export turnover in 2023, an increase of about 10% compared to one year earlier amid shrinking major markets and falling demand.

Discovering artisans' skills in Thanh Ha ancient pottery village

If pottery villages now mainly use molds, artisans in the Thanh Ha ancient pottery village in Hoi An city, Quang Nam, have kept their traditional method of making pottery - hand made and wheel thrown.

Destinations across Vietnam report surges in holiday-maker numbers during Tet

Tourist attractions across Vietnam have lured large numbers of holiday-markers during the week-long Lunar New Year (Tet) festival from January 20-26.

EVFTA presents tremendous trade, investment advantages

Commitments outlined in the EVFTA on both trade and investment are expected to contribute to attracting European businesses and investors to expand their activities in Vietnam, further promoting trade and investment cooperation.

10 houses with special architecture in Vietnam

With bold ideas, architects can create houses that are both aesthetic and functional. Here are 10 interesting houses in Vietnam.

89 people killed in traffic accidents during seven-day Tet holiday

A total of 152 traffic accidents occurred nationwide, killing 89 people and injuring 111 others during the 2023 Tet Lunar New Year holiday from January 20-26, reported the Traffic Police Department.

End of Tet holiday marked by high traffic congestion around major cities

In a bid to avoid the congestion, many people opted to return on Wednesday afternoon or Thursday morning.