Fishery enterprises are in trouble because of IUU “yellow card"

VCN - The burden of seafood exports is accumulating in the last months of the year because exports to the EU market are affected by the IUU yellow card. Businesses are struggling to ensure Vietnamese seafood enters the second largest market.
tin nhap 20191008095938 Aquatic yellow cards greatly affect the export of businesses
tin nhap 20191008095938 Vietnam sees success in removing fishing yellow card
tin nhap 20191008095938 Overcome "yellow card": "hot" at the superior level but "cold" at the subordinate level
tin nhap 20191008095938
IUU "yellow card" is the biggest obstacle to Vietnam's seafood exports to the EU in the past two years and in the near future.

Vietnamese seafood businesses are disturbed by the "yellow card"

On October 23, 2017, the EU officially gave the "yellow card" to Vietnamese seafood exported to this market because it has not met the regulations against illegal, unreported and unregulated fishing (IUU). Businesses said that the IUU "yellow card" has caused many negative effects, directly affecting the export of seafood to the EU and the subsequent effect on the US market and other potential markets. Specifically, seafood exports to the EU will decrease because EU customers are afraid of being fined under IUU regulations so they will reduce or stop buying goods from Vietnam. The warning is also published in official EU magazines and websites, worsening the image and adversely affecting the reputation and brand of Vietnam's seafood industry.

During the "yellow card", all seafood containers exported to the EU were detained to check the origin of the fish, causing time to be wasted and incurred costs of checking the origin of £500/container plus fees for the port. But the biggest risk is the large percentage of containers being rejected, the loss of seafood exports to the EU when having the "yellow card" on average can be up to 10,000 euro/container.

Mr. Duong Viet Hoai, Deputy General Director of Baseafood Company (Vung Tau) said that IUU "yellow card" is the biggest obstacle for Vietnam's seafood export to the EU in the past two years and in the future. In particular, the increasing cost of seafood exports to the EU makes Vietnam's seafood difficult to compete with other countries’ seafood and gradually loses its market share. The level of risk and damage is great because if the shipment does not pass the check of origin, the business will lose it all. The IUU "yellow card" also means many commodities such as dried shrimp of Vietnam can’t be exported because they cannot obtain the lawful exploitation certificate, although the EU market is in high demand.

Ms. Cao Thi Kim Lan, Director of Binh Dinh Seafood Joint Stock Company, said that Binh Dinh is one of the provinces with a large number of fishing boats in the Central region, most of which are involved in offshore fishing for export. In particular, the EU is the main export market, accounting for 60-70% of seafood export turnover of Bidifisco. Since Vietnam seafood was warned the IUU "yellow card", exporting to the EU is extremely difficult.

Specifically, although previously exported seafood to the EU was automatically cleared, it is now blocked from the port to check the origin of the exploitation, resulting in a clearance time of 10-15 days. This will not only incur shipping and inspection costs, but also affects the importer's delivery time and business plan. After two years, the proportion of seafood exports to the EU is only 40% of the export value total, reaching about $30 million/year, businesses must search for alternative markets and increase processing to solve the output.

How can Vietnamese seafood enter the EU market?

According to Mr. Nguyen Hoai Nam, Deputy General Secretary of Vietnam Association of Seafood Exporters and Producers (VASEP), the EU is Vietnam's second largest seafood export market after the US, and accounts for over 17% of the total of seafood export value of the whole country in the last three years. After two years of the EU "yellow card" on Vietnam's exploited seafood, Vietnam's seafood exports to EU market have been significantly affected, down 6.5% to nearly $390 million in 2018 and continue to maintain that level in the first eight months of 2019 with $251 million. From the second position in Vietnam's seafood import markets, after the "yellow card", the EU market has dropped to fifth and the proportion of the market has decreased from 18% to 13%.

Due to the impact, businesses have found many ways to manage and maintain for giving key export products into this market. The main export product of Pangasius to the EU is also under the warning. By the end of August 2019, the total of Pangasius exports to the EU market reached $174.3 million, up 8.8% over the previous year. In particular, the four largest import markets are the Netherlands, down 8.3%, the UK up 28.9%, Germany up 33.3% and Belgium up 26% over the same period last year.

However, compared to the first two quarters, starting from May 2019, the export growth rate in some major markets in the EU has slowed down. Currently, some Pangasius exporting enterprises still maintain added value and organic Pangasius products to the Netherlands and Germany. These are products with higher average import prices than traditional frozen fillet products of pangasius.

Ms. Nguyen Thi Thu Sac, Vice President of VASEP, Chairman of VASEP Seafood Committee, said that the Government, ministries, sectors and seafood enterprises have tried their best in combating IUU fishing. So far, 62 seafood enterprises have committed to combat IUU fishing by following the principle of purchasing seafood only from fully-licensed fishing vessels, fishing logs and port fishing certificates.

However, it is still difficult to determine the time to regain the "green card" into the EU for Vietnamese seafood due to inadequacies in the management of fishing activities and the awareness of fishermen's compliance is not high.

According to Ms. Nguyen Thi Thu Sac, the regulation that all offshore fishing vessels must be equipped GPS and monitoring devices is facing many difficulties, partly from funding for equipment, the other part is that fishermen are not aware of their responsibility to comply with IUU fishing rules. Moreover, the management of information on seafood traceability has not been implemented synchronously because there is no software to update information from fishing vessels to ports and purchasing enterprises.

tin nhap 20191008095938 Removing EC’s yellow card key to boosting seafood exports

Representatives of the local fisheries sub-departments also said that the overcoming of the IUU "yellow card" should focus on propaganda in the fishing community and owners about illegal fishing activities, recording and filing of logging diary. Tools and reasonable sanctions should be applied for non-compliance cases. At the same time, it is necessary to upgrade the national database on fishing vessels, gear, grounds, ports, the output of seafood raw materials and enterprises purchasing and certifying exploitation so as to monitor compliance with national and international legal procedures.

By Le Thu/Quynhlan

Related News

The Government adjust import and export tariff rate on certain goods

The Government adjust import and export tariff rate on certain goods

VCN - On November 1, 2024, the government issued Decree 144/2024/ND-CP, amending and supplementing certain provisions of Decree 26/2023/ND-CP on the export tariff schedule, the preferential import tariff schedule, tariff nomenclature, and the fixed duties, mixed duties, and out-of-quota import duties.
EU partners no longer

EU partners no longer 'lenient', Vietnam must adapt through ESG policies

VCN - Legal and economic experts are calling for Vietnam to revamp its policies to align with stringent sustainable development requirements set by European Union (EU) partners.
Quang Ninh Customs seeks solutions to promote import and export

Quang Ninh Customs seeks solutions to promote import and export

VCN - Quang Ninh Customs Department has made efforts to synchronously deploy solutions to accompany, support and resolve difficulties for businesses, contributing to improving import and export activities through the area.
Vietnam and UAE trade sees billion-dollar growth

Vietnam and UAE trade sees billion-dollar growth

VCN - According to General Department of Vietnam Customs by the end of September 2024, bilateral trade between Vietnam and the United Arab Emirates (UAE) reached nearly US$5 billion, an increase of more than US$1.4 billion over the same period last year.

Latest News

Vietnam- the Philippines trade reaches nearly US$6.5 billion after 9 months

Vietnam- the Philippines trade reaches nearly US$6.5 billion after 9 months

VCN - In the first nine months of 2024, the total two-way trade turnover between Vietnam and the Philippines reached nearly US$6.5 billion, an increase of over 20% year-on-year.
Vietnam's pepper exports down in volume, but surge in value

Vietnam's pepper exports down in volume, but surge in value

Vietnam's pepper exports saw a 1.9% year-on-year decrease in volume but a significant 48% increase in value thanks to higher prices in the first 10 months of 2024, according to the Vietnam Pepper and Spice Association (VPSA).
Vietnam’s e-commerce sector grows 18%

Vietnam’s e-commerce sector grows 18%

Vietnam’s e-commerce market is estimated at 22 billion USD this year, ranking third in Southeast Asia behind Indonesia (65 billion USD) and Thailand (26 billion USD).
Vietnam draws new wave of high-value investments: Savills

Vietnam draws new wave of high-value investments: Savills

Vietnam’s industrial and digital sectors are experiencing a strong growth, fueled by a surge in foreign direct investment (FDI) inflows, large-scale infrastructure projects, and a favourable legal environment, according to Savills Vietnam.

More News

Plastic exporters focus on recycling technology transformation

Plastic exporters focus on recycling technology transformation

VCN - Vietnam's plastic industry is facing significant challenges related to plastic waste and the demand for recycling. Huynh Thi My, Secretary General of the Vietnam Plastics Association, shared important insights on the transformation efforts by plastic businesses to meet the growing export demands.
How is Vietnam-US trade under two Trump elections?

How is Vietnam-US trade under two Trump elections?

VCN - In the first nine months of 2024, Vietnam-US trade reached nearly US$100 billion, nearly three times higher than the same period in 2016 - the first year Donald Trump was elected President of the United States.
Investment funds eye Vietnam

Investment funds eye Vietnam

Several large foreign investment funds are considering expanding investments in Vietnam to capitalise on the country’s rapid socio-economic development and green transition.
Export turnover of computer, electronic products and components reaches over US$ 55 billion

Export turnover of computer, electronic products and components reaches over US$ 55 billion

VCN – As of October 15, the export turnover of computers, electronic products and components earned US$ 55.3 billion, the General Department of Vietnam Customs (GDVC) reports.
Positive outlook for pangasius exports in the final months of the year

Positive outlook for pangasius exports in the final months of the year

VCN - With growth in pangasius exports to multiple markets showing positive trends, businesses are forecasting an optimistic outlook for exports in the final months of the year.
Processing-manufacturing accounts for over 64% of new FDI

Processing-manufacturing accounts for over 64% of new FDI

The processing and manufacturing sector took the lead in attracting foreign direct investment (FDI), accounting for 64.2% of the 27.26 billion USD recorded as of October 31, according to the General Statistics Office.
Foreign investment disbursement hits 19.58 bln USD in 10 months

Foreign investment disbursement hits 19.58 bln USD in 10 months

Disbursement of foreign investment reached about 19.58 billion USD in the first 10 months of this year, up nine% year-on-year, a report from the Ministry of Planning and Investment's Foreign Investment Agency (FIA) has shown.
“Greening” the textile, garment and footwear industry: Motivation from challenges

“Greening” the textile, garment and footwear industry: Motivation from challenges

VCN - Vietnam's textile and footwear industry is facing great pressure to satisfy more demanding requirements from international brands and national commitments on emission reduction while the input material and production costs are escalating.
Truly comprehensive finance: supporting micro and small enterprises

Truly comprehensive finance: supporting micro and small enterprises

VCN - To effectively support micro and small enterprises, Dr. Nguyen Duc Kien (pictured), former Deputy Chairman of the National Assembly's Economic Committee, former Head of the Prime Minister's Advisory Group, and Chairman of the Scientific Council of the Institute for Digital Economic Development Strategy (IDS), suggests that specific and specialized solutions and policies are needed to enhance these businesses' access to capital and technology.
Read More

Your care

Latest Most read
Vietnam- the Philippines trade reaches nearly US$6.5 billion after 9 months

Vietnam- the Philippines trade reaches nearly US$6.5 billion after 9 months

VCN - In the first nine months of 2024, the total two-way trade turnover between Vietnam and the Philippines reached nearly US$6.5 billion, an increase of over 20% year-on-year.
Vietnam's pepper exports down in volume, but surge in value

Vietnam's pepper exports down in volume, but surge in value

Vietnam's pepper exports saw a 1.9% year-on-year decrease in volume but a significant 48% increase in value thanks to higher prices in the first 10 months of 2024, according to the Vietnam Pepper and Spice Association (VPSA).
Vietnam’s e-commerce sector grows 18%

Vietnam’s e-commerce sector grows 18%

Vietnam’s e-commerce market is estimated at 22 billion USD this year, ranking third in Southeast Asia behind Indonesia (65 billion USD) and Thailand (26 billion USD).
Vietnam draws new wave of high-value investments: Savills

Vietnam draws new wave of high-value investments: Savills

Vietnam’s industrial and digital sectors are experiencing a strong growth, fueled by a surge in foreign direct investment (FDI) inflows, large-scale infrastructure projects, and a favourable legal environment, according to Savills Vietnam.
Plastic exporters focus on recycling technology transformation

Plastic exporters focus on recycling technology transformation

Huynh Thi My, Secretary General of the Vietnam Plastics Association, shared important insights on the transformation efforts by plastic businesses to meet the growing export demands.
Mobile Version