After pandemic, fisheries exports confident to see good growth

The key export commodity of pangasius is expected to see positive growth.

Confident in export quality

Confident in the quality of raw materials for export processing, many fisheries processors and exporters said that Vietnam's products would have advantages to increase after the pandemic. According to Dr. Ho Quoc Luc, former Chairman of VASEP, Chairman of Sao Ta Food Joint Stock Company, due to the disease in the early season and the Covid-19 epidemic, shrimp seed releasing was delayed. This will make the domestic shrimp price fluctuate in sinusoidal form because of local shortages, especially from May, the supply will be sufficient.

However, according to Mr. Luc, if the Covid-19 pandemic is controlled soon, domestic shrimp prices will increase more strongly than other countries, due to the high processing level of Vietnamese enterprises. This makes many products enter high-end and well-priced distribution systems.

“No matter how long Covid-19 lasts, the shrimp price will be quite good, basically due to decline in supply. If the price decreases, it will not be remarkable, but the upward trend is stronger,”said Luc.

Regardingshrimp exports of Sao Ta Food Joint Stock Company, now the company has enough export orders for the second quarter of 2020, so the enterprise is proactive in supplying and applying 4.0 technologies for farming and processing of exported products, meeting the strict requirements of importers.

In the context of supply of fisheries exports, VASEP said that Vietnam's shrimp exports in the first three months of 2020 reached US$628.6 million, a slight increase of 1.8% compared to the same period in 2019.

The highlight of shrimp exports is that shrimp exports to the US market in the first three months of this year recorded the most positive growth among the major import markets. In the context of export disruption in many markets due to the impact of the Covid-19 pandemic, this is an encouraging growth for Vietnamese shrimp exporters.

The US ranked second in shrimp imports from Vietnam. In March this year, Vietnam's shrimp exports to the US reached US$41.3 million, up 11.5% over the same period last year. In the first three months of this year, Vietnam's shrimp exports to this market reached US$115.5 million, up 18.2% compared to the same period in 2019. This is the best growth in Vietnam’s top fivemajor shrimp import markets.

In order forshrimp exports to this market to get the best results, VASEP recommends that exporters to the US should focus on deep-processing and value-added products such as easily peeled shrimp to matchthe consumption need of this segment.

Besides, Vietnam's shrimp exports to Japan reached nearly US$132 million, a year-on-year increase of 8.4%.

When major producers such as India and Ecuador are also facing difficulties in production due to the pandemic and weather, Vietnam needs to ensure the supply of raw materials and produce high-quality products to catch opportunities when the pandemic is controlled. The main shrimp importing countries are providing stimulus packages, the demand for shrimp will increase and it is hoped that the price will increase, VASEP recommends.

Positive growth expectations

For pangasius products, the picture of exports is brighter when pangasius exports to two major markets – China - Hong Kong and the US – grewwell. In particular, in March 2020, Pangasius exports to China - Hong Kong increased by 109% compared to January 2020.

According to VASEP, in the first three months of this year, the total exports of pangasius reached US$334 million, a year-on-year decrease of 29.3%. During the first quarter of this year, Covid-19 had a significant impact on Vietnam's pangasius exports to many markets. By the end of March 2020, the export value to China - Hong Kong reached US$63.2 million, accounting for 18.9% of the total pangasius export value, down 36.4% over the same period last year.

However, this is an optimistic export rate compared to the first days of the year when the Covid-19 pandemic broke out. Particularly in March 2020, the export value of pangasius to the China-Hong Kong market reached US$34.7 million, an increase of more than 109% compared to January 2020. China - Hong Kong returned to be Vietnam’s largest pangasius export market in the first quarter of this year.

VASEP predicts that in the second quarter of 2020, Vietnam's pangasius exports to this largest market will recover strongly and increase from 30 to 40% over the same period in 2019.

For the US market, Vietnam currently has over 30 enterprises participating in pangasius exports to the US market, of which, the three largest enterprises are: VINH HOAN CORP, BIEN DONG SEAFOOD and VD FOOD LTD.

According to VASEP, if pangasius exportswere not affected by disruptions in trade transactions, pangasius exports to the US market would be much better in the first quarter of this year. In March 2020 alone, pangasius export value to the US reached US$23 million, up 26.4% over the same period in 2019.

Although, pangasius export value in the first three months of this year still decreased compared to the same period last year (reaching US$61.7 million, down 13.2% compared to the same period last year), in the first months of the year, it showed a positive response from this market. Enterprises hope that in the second quarter, Vietnam's pangasius export value to the US market will see a positive growth compared to the same period in 2019.

In addition, because of the interruption of pangasius exports to China in the first months of this year, Vietnamese pangasius exporters are trying to find and boost exports to new markets. This will also be a good opportunity for enterprises to expand their export market share after the pandemic.