Seafood exports in March 2020 decreased by nearly 20%

VASEP, the Vietnam Association of Seafood Exporters and Producers, reports that the Covid 19 spread strongly around the world, causing serious impacts on the whole country’s production and export of aquatic products. Estimated seafood exports in March decreased by nearly 20% over the same period last year to only 549 million USD. In particular, exports to major markets affected by the epidemic plummeted. Exports to the EU dropped the most (-40%), to China fell 25%, South Korea 24%, Japan 19%.

Exports to the US decreased less than other markets (-8.6%) thanks to the fact that Vietnam’s seafood products still kept their market share in the retail segment. Demand for seafood in the US has generally decreased but the demand for fresh, live and canned products has increased. In the first week of March, canned seafood retail sales in the US increased by 10% over the same period last year.

According to some seafood enterprises, the Chinese market has a need to import again, but orders are not much, more and more, Chinese customers want to push prices even though the price offered for products is lower than that. before translation. Moreover, after the Covid epidemic eased tension in China, the enterprises of this country have import demands but it is difficult to access financial sources to borrow capital.

Outbreaks, blockade countries made trade activities stagnant, so exports to markets plummeted. Markets with the highest percentage of customers requesting to postpone delivery or cancel orders are mainly in Europe, Korea and China. Slow consumption makes payment delayed also affect the capital turnover of businesses.

In March 2020, both pangasius and tuna exports decreased by over 29%, cephalopod exports decreased by more than 31%, while shrimp exports decreased by 15%.

By the end of   March 2020, the country’s seafood export was estimated at over US $ 1.5 billion, down 14%. In particular, Pangasius exports dropped the most (-31%), mainly due to a decrease to the Chinese market from the first 2 months. Shrimp exports decreased slightly by 4.3%, while seafood exports decreased deeply (tuna decreased by 13.5%, octopus-squid decreased by 28%).

Currently, the price of shrimp and pangasius material has decreased because farmers are afraid of falling prices early, some businesses suspend buying raw materials because of reduced orders (delayed, canceled, no new orders), cold storage. Stocked and full. This situation can lead to a shortage of raw materials at the end of the year, when the epidemic is over and the demand increases if farmers limit or abandon ponds because they cannot survive at this stage.

Covid’s disease situation is still very complicated in countries around the world, so, in the next few months, the export situation will certainly continue to be affected by reduction. Enterprises can not escape the situation of declining, delaying / canceling orders, transporting goods is difficult, the payment is also not favorable, there will be many businesses (especially small businesses) unable to sustain because of lack of capital to maintain, to turn around the business.

Therefore, seafood businesses are in great need of the support of the Government and related ministries and agencies to reduce the pressure and difficulties caused by Covid-19’s effects: exemption of trade union fees, reduction of corporate income tax, price reduction. electricity, cold storage, extension of electricity payments, debt rescheduling, low-interest loans, reduction of administrative procedures, inspection, examination and preparation of plans and conditions to support and promote production.

Source: www.fit.com