Seafood enterprises gradually close factories because of lack of workers

VCN - Although the three on-site model has been implemented, less than 50% of workers stay and work in many seafood enterprises, making it more difficult for them at the peak of the harvest and export period.
Businesses complain of difficulties, Veterinary agencies carry out online quarantine Businesses complain of difficulties, Veterinary agencies carry out online quarantine
Transportation charges increase, seafood enterprises beg the Prime Minister for help Transportation charges increase, seafood enterprises beg the Prime Minister for help
Manage to gain export competitive foothold for Vietnamese enterprises Manage to gain export competitive foothold for Vietnamese enterprises
Production of shrimp for export at Sao Ta Company. Photo from the company
Production of shrimp for export at Sao Ta Company. Photo from the company

Only 30-40% of workers go to work

According to Ta Ha, a pangasius market expert from the Vietnam Association of Seafood Exporters and Producers (VASEP), shrimp processing and exporting enterprises from the Central region to Soc Trang and Ca Mau said that the Covid-19 pandemic broke out in HCM City and spread to neighboring provinces and the Mekong Delta so quickly that many businesses, even those which had planned to respond in advance, were confused.

According to the leader of Sao Ta Foods JSC, to ensure sustainable production, avoid disruptions and prevent the pandemic, they have actively implemented the three on-site model before the Prime Minister issued Official Letter 969/TTg-KGVX on July 17, 2021 on the implementation of social distancing to prevent and control the pandemic in Soc Trang and 18 southern localities.

The company has tried to convince their employees in many ways such as: providing adequate accommodation, essential supplies, an additional allowance of VND50,000 - 100,000 per day to maintain production. Many enterprises, which do not arrange enough accommodation rent a hotel or a student dormitory.

However, in some enterprises, after announcing the three on-site model (working, eating, and resting on-site in enterprises or hotels), up to 30%, even up to 50% of workers resigned because of family circumstances or because they have been in contact with relatives and friends returning from Binh Duong, Long An, and HCM City.

Businesses consider this a must-do when there have been many cases of unknown source, but it is not easy.

Tran Quoc Luc, Chairman of the Board of Directors of Sao Ta Company, said that implementing the three on-site model costs a lot, including money for periodic testing, three meals per day for about 1,400 employees, and necessary items. The most difficult thing is that only about 30-40% of workers go to work, affecting the operating capacity of many businesses.

Additionally, some units have reduced their processing capacity by 30-90% due to the inability to arrange accommodation for workers. Because of the characteristics of the seafood processing industry, it is impossible to arrange accommodation for workers at the factory, even separate from the processing area, to ensure safety. Moreover, most employees of seafood processing factories are local people, who go home daily without needing to stay on-site.

Shrimp is in the peak period of production and export in the Mekong Delta because of many orders and shrimp have begun to be harvested. Despite abundant raw materials, the transportation of goods and raw materials faces many difficulties, lack of workers, significantly affecting production.

More difficulties

According to the VASEP, information from member enterprises showed that although the Ministry of Health has sent an official dispatch to the People's Committees of the provinces asking not to check the SARS-CoV-2 test certificates for drivers of freight vehicles (drivers, attendants on the vehicle, staff loading and unloading goods accompanying the vehicle), drivers have been required to have a negative test for Covid-19 in most Western provinces.

Additionally, according to a leader of a shrimp export enterprise, there are many things that happened during the difficult time, which hindered enterprises. For example, trucks carrying shrimp feed to farming areas are subject to vehicle load checks, or trucks carrying shrimp shells are not allowed to go through Can Tho to sell to processing factories because they are not essential cargo trucks.

Due to the pandemic prevention requirements, many packaging, service and auxiliary materials factories for the seafood industry were also closed. Seafood enterprises continued to look for alternative suppliers, but most of them negotiated to extend the delivery time.

According to expert Ta Ha, while businesses in the West cannot buy shrimp raw materials that are in season, enterprises in coastal provinces such as Binh Dinh, Kien Giang, and Ba Ria - Vung Tau reduced capacity by 20-70% due to a lack of raw materials, localities are all under social distancing measures or some fishing ports are blocked due to Covid-19 positive cases. Sea freight increased sharply, lack of containers, payment and delivery time of importers is also longer due to congested international ports, which also makes enterprises face more difficulties.

After implementing the three on-site model, businesses continuously manage and balance their finances; change, rearrange production plans in order of priority for each customer, each order, and make the most of the goods in stock. However, many customers and importers demanded to cancel orders and be compensated for late delivery. The desire of enterprises at this time is not the growth rate but that the workers are vaccinated as soon as possible to work safely.

By Le Thu/ Ha Thanh

Related News

Seafood export: Has bottomed and is recovering

Seafood export: Has bottomed and is recovering

VCN - Although the output and area of aquaculture in the first 6 months of the year still maintained growth momentum, seafood exports fell sharply. In that context, along with competition from direct competitors such as Ecuador, India, etc., businesses need to have a strategy and implement well the regulations of the export market to maintain their position and export section.
3 trade remedy tools are being used commonly by countries

3 trade remedy tools are being used commonly by countries

VCN - By the end of December 2022, Vietnam's export goods were the subject of 227 investigation cases related to trade remedies. In 2022 alone, there are 17 new cases initiated by foreign countries.
Leverage recovery time to accelerate growth

Leverage recovery time to accelerate growth

VCN - According to many experts, Vietnam's economy has not yet overcome the current difficult situation, there is still a long way to go before seeing a significant recovery.
Seafood enterprises adjust their revenue in 2023 because of difficulties in exporting

Seafood enterprises adjust their revenue in 2023 because of difficulties in exporting

VCN - In the first quarter of this year, a deep drop in exports eroded the profits of enterprises, causing seafood enterprises to adjust their business targets for the year.

Latest News

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN member states and the Republic of Korea (RoK) have reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Opportunities for digital technology businesses to go global

Opportunities for digital technology businesses to go global

Finding solutions and directions to promote and develop Vietnamese digital technology enterprises is an important task, which will promote the stability and sustainability of the country's economy, heard a recent conference.
Vietnam, China eye stronger border trade

Vietnam, China eye stronger border trade

Border provinces of Vietnam and China should continue close coordination and enhance trade promotion between the two sides, stressed the recent talks between the management boards of the economic zone of the northern province of Ha Giang and the Malypo border economic cooperation zone of China’s Yunnan province.
Improve competitiveness and sustainable development of the seafood industry

Improve competitiveness and sustainable development of the seafood industry

VCN - In early 2024, seafood exports have prospered. This is the driving force that helps seafood businesses hope for a stronger recovery this year. Ms. Nguyen Thi Thu Sac, Chairwoman of the Vietnam Association of Seafood Exporters and Producers (VASEP) shared with Customs Magazine.

More News

Business environment reform needs further promotion: expert

Business environment reform needs further promotion: expert

Resolution 02 issued by the Government creates pressure for the ministries, sectors and localities to make changes for the business community as well as the socio-economic development.
Singapore is the largest foreign investor in VN in Q1

Singapore is the largest foreign investor in VN in Q1

The disbursed FDI rose by 7.1 per cent in the first quarter to reach $4.63 billion, a signal that the disbursement will continue the positive trend, the agency said.
Thai Binh boosts investment, trade cooperation with Germany

Thai Binh boosts investment, trade cooperation with Germany

A delegation from the northern province of Thai Binh, led by Deputy Secretary of the provincial Party Committee Nguyen Khac Than, visited several localities and business organisations in Germany from March 25 to 27, in a bid to enhance trade cooperation with and attract direct investment from the European nation.
Lifting obstacles to develop industrial parks

Lifting obstacles to develop industrial parks

VCN - Attracting investment and developing industrial zones (IZs) and economic zones (EZs) is one of the important contents to implement the policy of developing a multi-component, open, attract investment and resources from all economic sectors to develop the country. In addition to the results achieved, there still limitations that need to be removed to draw investments to develop industrial parks and economic zones, including financial problems for industrial parks.
Unlock capital flows and create favorable conditions for investors

Unlock capital flows and create favorable conditions for investors

VCN - Talking with the press, Dr. Ngo Cong Thanh (Photo), Provisional Executive Committee member of the Vietnam Industrial Park Finance Association (VIPFA), said that it is necessary to open up capital flows and create conditions for investors to access key factors. Facilitate production and business factors and innovate investment promotion activities to more effectively develop industrial parks.
More than 300 businesses, manufacturers to attend VGMF 2024

More than 300 businesses, manufacturers to attend VGMF 2024

More than 300 domestic and foreign businesses and manufacturers will attend the Vietnam Global Manufacturing Forum 2024 (VGMF2024) to explore investment and business cooperation opportunities.
Connecting with FDI firms helps boost wood exports: insiders

Connecting with FDI firms helps boost wood exports: insiders

Strengthening linkages and cooperation between foreign-invested and domestic enterprises will contribute to promoting the sustainable development of the Vietnamese wood industry, according to insiders.
Doosan Vina exports nearly 2,000 tonnes of modules to US

Doosan Vina exports nearly 2,000 tonnes of modules to US

The Doosan Enerbility Vietnam (Doosan Vina) specialising in heavy industries announced on March 26 that it has just exported a batch of nine modules weighing nearly 2,000 tonnes to the Golden Triangle Polymers company in Texas, the US.
Wood processing enterprises strive to increase the proportion of individually designed goods

Wood processing enterprises strive to increase the proportion of individually designed goods

VCN - Many wood and furniture processing enterprises are promoting investment in design activities, helping to increase the proportion of individually designed products (ODM) in exports, thereby affirming the industry's capacity Vietnamese wood in segments with higher added value.
Read More

Your care

Latest Most read
ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN member states and the Republic of Korea (RoK) have reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Opportunities for digital technology businesses to go global

Opportunities for digital technology businesses to go global

Finding solutions and directions to promote and develop Vietnamese digital technology enterprises is an important task, which will promote the stability and sustainability of the country's economy, heard a recent conference.
Vietnam, China eye stronger border trade

Vietnam, China eye stronger border trade

Border provinces of Vietnam and China should continue close coordination and enhance trade promotion between the two sides, stressed the recent talks between the management boards of the economic zone of the northern province of Ha Giang and the Malypo border economic cooperation zone of China’s Yunnan province.
Improve competitiveness and sustainable development of the seafood industry

Improve competitiveness and sustainable development of the seafood industry

In early 2024, seafood exports have prospered. This is the driving force that helps seafood businesses hope for a stronger recovery this year.
Business environment reform needs further promotion: expert

Business environment reform needs further promotion: expert

Resolution 02 issued by the Government creates pressure for the ministries, sectors and localities to make changes for the business community as well as the socio-economic development.
Mobile Version