10 excellent exporting enterprises of the shrimp industry are honored by VASEP in 2022. Photo: T.H

Export to the destination

Congratulating the fisheries sector, Deputy Minister of Agriculture and Rural Development Phung Duc Tien emphasized that this is the result of the whole process of overcoming a series of difficulties and challenges for the agricultural industry and the seafood industry.

From the difficulty of transportation and logistics costs; the cost of input materials has increased, leading to difficulties in labor and capital mobilization for production, but businesses have made every effort to overcome it, increase exports, and bring many seafood products to account for market share in the world. "On the world seafood export map, Vietnam is the third largest exporter, accounting for over 7% market share in the world market, just behind China and Norway," Deputy Minister Phung Duc Tien said.

Speaking to reporters about the recent USD 10 billion seafood export value, Ms. Nguyen Thi Thu Sac, Director of Hai Nam Co., Ltd. said that this year is quite a successful year for seafood enterprises when achieving very good results in early 2022. This will be a source of motivation for businesses to continue to overcome difficulties and achieve their goal . As for Hai Nam Co., Ltd., Ms. Thu Sac said the company focuses on diversifying processed products, creating high added value, and meeting the requirements of the fastidious export market.

According to Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), in 2022, Vietnam's seafood exports will reach the goal of USD 11 billion, up 25% compared to 2021. This is the record level of Vietnam's seafood industry in more than 20 years of exporting to the world market. In which, most of the key products achieved very high export turnover, such as shrimp reached USD 4.3 billion, up 30%; pangasius exceeded USD 2 billion, increasing by more than 80% over the same period in 2021 and can reach USD 2.5 billion. For the first time, the export turnover of tuna products exceeded the USD 1 billion mark.

Mr. Ho Quoc Luc, Chairman of the Board of Directors of Sao Ta Food Joint Stock Company, said that 2022 will leave the seafood industry with mixed joys and sorrows. Happiness is due to unexpected growth numbers. Sadness due to the end of the year, when production and consumption decreased, it was also somewhat unexpected and more worrying that the consequences had not stopped.

However, businesses know how to adjust their operating and business strategies for themselves and how to flexibly overcome difficulties with the lowest cost. In which, the biggest focus is on increasing product competitiveness through optimal calculation of processes and consumption norms; focus on improving productivity through equipping supporting tools; at the same time, attaching importance to the flexibility in market planning in each stage, followed by corresponding products as well as re-selecting suitable customers.

Expect bright spots in the new year

Giving direction in the current difficult context, Mr. Ho Quoc Luc said that in the current context when consumers are increasingly intelligent and demanding, businesses cannot follow backward production.

“We must have enough abilities for ourselves. That is how to attach importance to building corporate culture because the core values formed will be the most solid foundation for sustainable development; At the same time, focus on business ethics. It is the core of corporate culture. Now entrepreneurs have to memorize the content of social responsibility (CSR), creation of common value (CSV), green economy, circular economy; they must pay attention to branding and attach importance to the development of operational strategies," said Mr. Ho Quoc Luc.

Pointing out the problems that need to be solved for the source of raw materials for production, Ms. Nguyen Thi Thu Sac said that, in addition to the source of domestically grown raw materials, export production enterprises also have to import raw materials; if they are supported from the capital source from the state, enterprises will reduce difficulties.

Besides, Vietnamese seafood enterprises have quite a professional system of processing factories and workshops. Currently, there are more than 700 processing facilities certified by the EU and China. USDA equivalency recognition for pangasius export industry. In addition, the number of enterprises with an international sustainability certification is increasing, meeting the increasing requirements of the import market. "Hopefully, if supported, seafood exporters will bring their export sales to the same level as in 2022," said Ms. Nguyen Thi Thu Sac.

Assessing the current impacts of the seafood industry, Mr. Truong Dinh Hoe said that the reality for seafood enterprises is quite difficult. This is not the difficulty of next year, but the difficulty of the end of 2022 and the transition to 2023. The market cannot go down forever, there will still be times when it will go up, but it is important when the market goes up again.

“The current macroeconomics of Vietnam are considered to be quite good, so it will not be affected by external problems as much as in 2008. In addition, the current health of enterprises cannot be said to be strong but certainly will be stronger than the 2008 period. On that basis, we should not be too pessimistic, but businesses must continue to hold out and catch opportunities,” said Mr. Truong Dinh Hoe.

Making forecasts for the seafood industry in the future, economist Dinh The Hien said that the first quarter of 2023 will continue to be the most difficult period. However, by the end of the fourth quarter, the commercial banking system will be stable, and by the first quarter of 2023, the corporate bond market will be good again. Lending interest rates by the end of the first quarter of 2023 will cool down about 10-14%; capital into production from the first quarter of 2023 will start well and in the second quarter will increase sharply.

Particularly, the seafood industry is a working capital industry, which means that it is always prioritized for loans by banks while the revenue of this industry is still good, so it is forecast that next year, the capital flow into the seafood industry will be more favorable than other industries.