The seafood industry is 'more difficult than during the peak of the pandemic'

Seafood businesses assess that the decline and disruption of orders are more severe than during the peak of the Covid-19 pandemic.

In the past five months, seafood exports continued to decline by double digits compared to last year, reaching only nearly 3.37 billion USD, down nearly 28%; the number of export orders decreased by 20-50%, the Vietnam Association of Seafood Exporters and Producers (VASEP) said in a document sent to the Ministry of Planning and Investment.

Businesses in the industry also reflected that while the consumer market is plunging, export prices are falling sharply, input costs and bank interest rates continue to create additional burdens.

Therefore, the market outlook at this time and in the short term is not considered very bright. Businesses are worried about the risk of a serious shortage of raw materials (fish, shrimp) in early 2024 - the time when the market recovers because shrimp farmers are exhausted. In addition, many businesses suffering losses at this time may not be able to overcome it.

"Businesses all confirmed that the situation is more difficult than during the peak of Covid-19," said VASEP.

It is expected that this year's export turnover will only be at 9 billion USD, nearly 2 billion USD lower than last year.

To help businesses in the industry overcome difficulties, VASEP proposed that the Government "take immediate action". This unit pays special attention to reducing interest rates, capital, and credit because these are the most stressful bottlenecks for the industry at present.

For example, VASEP proposed that the Government adjust the USD loan interest rate to below 4% and the VND loan interest rate to below 7% to support export enterprises. Since the third quarter of 2022, the USD interest rate has increased sharply from 2.2-2.8% to 4.1-4.9%, in some places exceeding 5%.

VASEP proposed considering a special preferential credit package for small-scale aquaculture households to have the opportunity to access bank loans with suitable interest rates; extending debt for 4-6 months for businesses.

The Association also proposed to soon have a stimulus package of 10,000 billion VND for aquaculture in the Mekong Delta, aiming at export enterprises to actually buy raw materials in reserve from now for export in 3-6 months and in the first quarter of 2024.

"Implementing early stimulus will make aquaculture farmers feel secure to continue raising fish instead of suspending their ponds," said VASEP.

In fact, at the conference in April, the Prime Minister directed the State Bank to study a VND10,000 billion package to support businesses in the forestry and seafood production and processing industry.

In addition to these issues, to facilitate business operations, VASEP recommends early solutions to cut business costs through tax policies, fees, social insurance contribution rates and payment times.

Duc Minh

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