Soaring over Vast Seas – Vietnam's Aquaculture Industry Faces Challenges Beyond the $10 Billion Milestone

Soaring over Vast Seas – Vietnam's Aquaculture Industry Faces Challenges Beyond the $10 Billion Milestone

Amid the fervent atmosphere of early December, the Vietnamese aquaculture sector is preparing a momentous event to commemorate the pivotal achievement of surpassing the $10 billion export threshold—a milestone that is especially impressive considering the forecast that the full year's total may reach $11 billion.

This year marks a striking contrast to 2021, when the seafood exports had to accelerate powerfully at the year's end to touch the record figure of $8.9 billion. In 2022, however, the trend reversed direction. From the onset of the year, the aquaculture industry has surged forward with vigor, achieving the $10 billion mark in just 11 months.

The export of pangasius fish, registering an astonishing growth rate of 77% over 10 months (equivalent to $2.1 billion), has emerged as a luminous star amid the vast ocean. The tumultuous economy, stemming from the conflict between Russia and Ukraine, has indirectly afforded a competitive edge to Vietnam's pangasius products as we broaden our presence on the global market map. The dearth of whitefish supply, coupled with robust demand, has propelled the export price of pangasius to soar by 50% compared to the same period in the preceding year.

Meanwhile, shrimp - a longstanding staple commodity - continues to buzz with an 18% growth rate, corresponding to $3.8 billion. This year, for the first time, Vietnam's tuna exports are poised to make a significant mark with an impressive 49% increase over the first 10 months of 2021, reaching the landmark achievement of $1 billion. Moreover, squid and octopus are not far behind with a growth rate of 33%, realizing $630 million.

Nonetheless, success is seldom devoid of challenges. The current global economic downturn is exerting a significant impact on consumption speeds, leading to the cancellation or postponement of numerous contracts. Consequently, warehousing and logistic costs have seen a substantial rise.

Furthermore, enterprises within the industry are encountering dilemmas regarding capital for reinvestment and raw material procurement, as access to loans has become increasingly challenging due to banks constricting credit and limiting disbursements. This burden is weighing heavily on the aquaculture industry and threatening to engender profound effects on the entire production chain—from material shortages to investment difficulties in production, processing, and exporting. These potential obstacles could erect significant barriers for the aquaculture sector on its developmental voyage.

Source:thanhnien.vn

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