[Industry news] VASEP urges Ministry of Agricultural and Rural Development to toughen quality controls of cross-border pangasius trade

On March 20, 2018, VASEP sent an official recommendation letter to the Minister of Agricultural and Rural Development to consider and direct the quality management standards by issuing and inspecting Quality Certificate of pangasius before exporting to China across two countries’ mutual border in 3 months until the raw materials supply become abundant again.

According to VASEP, exports to China in Jan 2018 reached USD41million, growing by 132% y-o-y in which ocean shipping accounted for 56% and cross-border trading accounted for 44%. The border trade between two neighboring countries is inevitable but there is some concerns over the exports of pangasius through this channel.

The average exporting price by ocean liners is higher by approximately USD1 than the other channel. The trading through borders involves individuals who operate in very different method from those companies exporting through official channel (ocean shipping) with legal business registration.

According to customs statistics, there are nine individuals representing cross-border export activities yet are accounting for 47% of the exporting volume and only 23% of the export value in comparison with 73% contributed by processing factories.

In order to achieve the export turnover target of over USD 1.8 billion and create a springboard for development in the coming years, avoiding the consequences such as market over dependence and unfair competition, VASEP requests the Minister of Agricultural and Rural Development to review and direct the quality management according to the standards by issuing and inspecting Quality Certificates before exporting pangasius products via border to China for 3 months until the raw materials supply catch up.

VASEP recommends MARD to implement the inspection program to small pangasius processing and semi-processing establishments to ensure the quality of final export products. At the same time, MARD should study the long-term development strategy for Chinese market and marketing programs to promote pangasius products into this huge market.

Vinh Hoan Corp has always shipped all of its pangasius products to China by large ocean liners.

(Source: VASEP)