Seafood businesses adapt to the new situation

Seafood businesses will regulate the market through trade promotion. Photo: T.H

Turning danger into opportunity

According to information from the Vietnam Association of Seafood Exporters and Producers (VASEP), in January 2024, seafood exports showed positive signs, increasing by 64% over the same period in 2023, reaching US $750 million. In particular, the main products all had a significant breakthrough compared to the same period last year.

Regarding markets, the most breakthrough growth was in China and Hong Kong (China) market, which increased more than three times, exports to the US increased by 63%, to Japan increased by 43%, and to the EU increased by 34%...

According to Ms. Nguyen Thi Thu Sac, President of VASEP, although many businesses said the market has not improved and there are many difficulties, the high growth numbers of the first month of 2024 bring feelings of confidence. and hope for a stronger recovery this year.

However, businesses have problems to face, such as oversupply, high inventory, low purchasing prices, great competitive pressure... However, businesses hope that in the second half of the year, selling prices will be better when sales volume increases, inventories decrease, and market demand recovers.

In addition, new challenges such as Red Sea tensions causing increased freight rates, IUU "yellow cards" and anti-subsidy taxes will make it difficult for businesses, but with the courage to overcome difficulties, market experience, and flexibility and acumen, businesses will "turn risks into opportunities", exploiting and developing suitable products and markets. At the same time, we hope that Vietnam's shrimp industry will not be subject to anti-subsidy taxes. Seafood will have their IUU "yellow card" removed as quickly as possible.

VASEP and the business community will make every effort, proactively and dynamically to ensure the supply chain and value chain of the seafood industry with quality, food safety, and traceability, towards the goal of improving quality competitiveness and sustainable development of the seafood industry.

Business adaptation

Ms. Le Hang, Communications Director of VASEP, said that inflation and geopolitical fluctuations such as the Russia-Ukraine war and the Red Sea conflict have changed the landscape of the seafood market. Along with that, some developments such as the ban on Russian seafood by the US and EU have made China the target market for Russian businesses, more or less reducing the market share of other countries on this continent. China banning imports of Japanese seafood or the US and EU warning about forced labor issues at Chinese processing factories are the factors that push Japanese, US and European businesses to seek partners in Vietnam.

According to Ms. Hang, these changes are both challenges and opportunities. Therefore, businesses should reconsider their market strategies. In particular, the export market should be re-evaluated, not too dependent on traditional markets to suffer from intense competitive pressures and strict regulations and barriers. For example, China is a large market, with a large population, increasing demand because of the growing middle class, and favorable geographical location... but some businesses see China as a good market changes, risks in payment, only like to buy cheap goods, difficulty competing with other countries...

In addition, businesses also have other market opportunities, such as market segments for dry goods and canned goods for war-affected areas, high inflation, or opportunities in markets with favorable locations. closer like ASEAN countries, reducing losses due to increased transportation costs...

Along with exports, the domestic market has potential with a population of 100 million people and living standards that are getting better and better. Potential purchasing power is not only in retail channels and service channels but also in the fields of restaurants, hotels, tourism, traditional markets, residential areas...

Adapting to changes, Ms. Nguyen Thi Thu Sac asked businesses to pay attention, invest and maintain the safe quality brand of Vietnamese seafood. Businesses not only need to have a large quantity of goods, but also important quality raw materials and legal raw materials at the most reasonable prices.

Regarding the market, the seafood business community has made decades of efforts from raw materials, finance, production, certification and quality to penetrate the most demanding markets such as Europe, America, Japan and Japan. China.

“With the efforts, flexibility and adaptation of seafood businesses and the support of the Government and ministries, I believe that in 2024, seafood exports will be higher than in 2023, possibly reaching US$ 9,5 billion " - Ms. Nguyen Thi Thu Sac said.