Vietnam’s Aquaculture Industry – An Update
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Vietnam’s Aquaculture Industry – An Update

Posted by | April 24, 2013 |

The Vietnamese fisheries industry is growing and has Government support. In 2012 Exports hit US$6.2 billion, a 1% increase from the same period in 2011 against a projected value of US$6.5 billion. The slight under performance stemmed from lulls for Vietnam’s two most important export items (Shrimp and Pangasius), however other areas of the industry compensated by showing growth.

• Marine exports reached a record US$2.2 billion, +14.5% on 2011, mainly driven by Tuna exports (up 53.1%), other fin-fish (up 23.4%) and Crustacean improving by 9.3%.

The Vietnamese government has taken measures to improve an already positive Fisheries industry addressing areas recommended by VASEP:

• Tax incentives and projected market developments are expect to help Seafood Exporter and Pangasius farmers to combat difficulties obtaining capital in 2012, where nearly one third of Commercial companies and Exporters halted operations

• Environmentally friendly export packaging will benefit from tax breaks and refunds, to improve margins and free more capital to invest elsewhere

• Exporters get a 275 day grace period on tax payments for imported materials that are used for exporting goods

• Aquaculture Stewardship Council (ASC) is striving for 100% of Pangasius farms to be certified by 2015 (50% through ASC), to preserve environmental conditions and protect the industry and it’s investors

• Feasible replacement preservatives for Ethoxyquin are being sourced after Japanese authorities clamped down on testing (max residue limit 0.01ppm) causing a 6 month progressive decline in Shrimp exports to the market of 1.4% – 16.6%vs 2011
• Directorate of Fisheries (D-Fish) is striving to eliminate shrimp diseases like early mortality syndrome (EMS) that dramatically affected the industry in 2011

In 2012, the U.S. became (and continues to be) the largest importer of Vietnamese seafood (No:1 for Tuna and No: 2 for Pangasius), overtaking the European Union. This is partly due to 5.4% growth in export value compared to 2011.

Vietnam Fisheries Chart 24-4-12

This upward trend continued in January 2013 with U.S. imports growing 22% on the same period last year and the three fastest-growing markets were ASEAN (+111.2%), China/Hong Kong (+97%) and Brazil (+88.9%). The main export earners were Shrimp (25.3% growth), Pangasius (40.7% growth) and Tuna (47.1% growth).

It is significant to note that the farmer’s species are producing the greatest return for the industry and thus are favorably supported locally. We believe that the consolidation of the industry will continue resulting in increased professionalism and traceability in an exciting growing industry.

For more information on the Vietnamese Aquaculture industry and information on the latest research please contact: michael@boddingtonconsultingcom. Sources: Vietnam Seafood News