Adding more values to Vietnam's seafood products

Export price to increase in the new year?

In 2017, in the face of numerous difficulties and challenges caused not only by the domestic raw materials shortage but also the barriers at exporting countries, the industry had exceeded its exports target to hit USD 8.3 billion. In 2018, the industry aims at USD8.5billion in export value, while focusing in building a more sustainable value chain and deepening its presentation in global value chain.

“Although the industry has to face many difficulties in major traditional markets such as the US, EU; the demand from Chinese market is great, which has sent out a good signal to the exporters,” said Mdm. Khanh – Vinh Hoan Corporation’s Chairwoman

The remaining problem, according to Khanh, is that the business must know how to try before it trusts, to choose the right partners to do business with and to stand firm on its ground in regards to the quality of products. “That means there will be those partners who only want to cut the top layer, to get the cheap price … However, the firm must reject the orders which might affect negatively on their reputation, prestige, and always put quality standard top of mind to ensure their sustainable development path, “Khanh said.

Ms. Khanh also predicted that due to unstable weather, the raw material situation 2018 may continue to be short, to the same level or even lower than in 2017. Meanwhile, due to high deman, the price of this product is expected to be higher than 2017.

Focus on value-added products

Of the USD8.3 billion seafood export value in 2017, the proportion of value added products (VAP) was increasing. Specifically, the white shrimp product has been growing steadily over the past five years. In 2017, vannamei shrimp export value reached USD 2.5 billion, trippling that of monodon shrimp. In particular, the ratio of value added products accounted for 50% of vannamei shrimp export volume.

“In EU, the exporters are proposing to the Ministry of Agriculture and Rural Developement to support pangasius communications, to regain the consumer belief. The demand will pick up consequently.”

Mdm. Trương Thị Lệ Khanh – Chairwoman of Vinh Hoan Corporation

Therefore, VASEP said that the fisheries sector in the future should be oriented towards adding more values to regular products, from processing technology, food safety, packaging form, product information to convenience, certification, communication, and advertising … Some of Vietnam’s products have started to do that, such as vannamei shrimp, canned tuna, canned crab meat, surimi …

VASEP also recommends that the government and MARD set the VAP as a leading criterum for national-level programs, especially for the market expansion, product communication, product traceability, origin certification programs. In addition, it is necessary to review and supplement the industry restructuring program or to build a separate program aiming at increasing value of agricultural and fishery in Vietnam before 2025.

At Vinh Hoan Corporation, when asked about the 2018 target, Khanh said that company sets the goal of developing value added products, with its proportion no less than 10% in total product mix and will increase to over 20% by 2020.

(Source: VASEP)