About a third of Vietnams 900 seafood exports went out of business last year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). Those that went under were mainly commercial companies and exporters facing hardship in capital and import markets.
The top 100 seafood exporters accounted for 68% of total export value, which was over $4.3 billion. Minh Phu Seafood Corp was first with $357.2 million, or 5.8% of the tital. Second place Vinh Hoan Corp: Vinh Hoan Corp earned nearly $155 million with share 2.5% Third came Hung Vuong Corp at $112 million and 1.8 %.
VASEP cited five main problems for Vietnam seafood exporters in 2012:
1. Shortage of capital for seafood processing and producing: Although the Government offered preferential interest rate of 11% percent on loans for shrimp and pangasius farming, procedures were complicated and banks were hesitant.
2. Unstable supply of raw material: Shrimp output sank due to early mortality syndrome (EMS) on shrimp. The supply of raw material for processing and exporting was choppy because farmers faced lack of capital, skyrocketing input costs and unstable prices for raw material. Many farmers left their ponds idle.
3. Low demand from importers: Seafood demand from main markets such as EU, the U.S., Japan dropped because of economic turmoil. Consumers tended to shift to cheaper food, But seafood prices suffered from high pressure from rival exporters.
4. Technical barriers from importers: Shrimp exports were hampered by Ethoxyquin barrier from Japan and South Korea. Besides, China and some Asian countries had signs of creating barriers against Vietnam seafood.
5. Increasing input costs and inadequate administrative procedures raised production costs for seafood exporters and slashed their competitiveness. In particularl, The Ministry of Agriculture and Rural Development's Circular No. 55/2011-BNNPTNT on testing and certificating the quality and hygiene of exported seafood products is said to be creating a great burden in costs and time for exporters.
