AsemconnectVietnam - Seafood exports in April of 2023 continued to decline by 28%, reaching only 810 million USD, so by the end of April of 2023, the country’s seafood exports reached over 2.6 billion USD, 31% lower than the same period last year.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), seafood exports in April of 2023 continued to decline by 28% over the same period of 2022, reaching only 810 million USD. Seafood enterprises are still under heavy pressure because the consumption market has plummeted, export prices have plummeted while domestic production and processing are burdened with high production costs, especially feed, seed and other basic costs. By the end of April of 2023, the country’s seafood exports reached over 2.6 billion USD, 31% lower than the same period of 2022.
Ms. Le Hang, communications director of VASEP, said that the US market is getting deeper and deeper into the situation where food prices increase and consumption decreases. American families are too "tired" with the fact that food prices are so high. Now, Americans have considered cutting spending on low-value items, they buy less non-essential groceries, buy in bulk, unbranded products, and focus on high-end products. Some people even buy and eat less in general. Consumers are looking to spend only on the goods they really need.
That situation caused Vietnam's seafood exports to the US to maintain a deep drop of 51% in April, making the US fall to the 3rd position in seafood import markets, after Japan and China. In the first four months of 2023, seafood exports to the US were estimated at 418 million USD, down by over 57% over the same period last year.
The exports to China, despite having a better signal, have not yet recorded a positive growth compared to the same period of 2022. The main reason was that pangasius exports to this market have not recovered because the average export price has decreased. Moreover, the consumption demand of this market recovered more slowly than expected. By the end of April, Vietnam's seafood exports to China were estimated at 435 million USD, down by 37%.
Opening up after Covid-19, China's real estate market remained quiet and industrial profits fell deeply, the economy faced constant headwinds, making the recovery ability slow. China's own domestic production is also struggling because customer spending is weaker than expected.
Both major markets declined, so pangasius exports were severely affected, resulting in sales of less than 600 million USD in the first 4 months of this year, down by 46% compared to the same period in 2022.
Shrimp exports were also strongly affected by the decline to the largest consumer market, the US. By the end of April, shrimp export value reached over 891 million USD, down by 44%.
Among seafood exports, squid and some other marine fish species (except tuna) tended to be more positive in April. Accordingly, the exports of other marine fish species increased by 9%, while squid and octopus exports increased by 3%. Meanwhile, tuna exports still decreased by 36%, other seafood species all decreased with a double-digit rate.
The two markets of South Korea and Japan both have lower import values of Vietnamese seafood compared to the same period last year, but the decline was less than that of the US and China. The decrease in shrimp exports to these markets was offset by revenue from processing and exporting seafood products to foreign seafood processors and traders.
According to Mr. Nguyen Hoai Nam, Deputy General Secretary of VASSEP, in the first 4 months of 2023, the export orders of enterprises decreased. The reason was that the inflation situation has caused consumption in these countries to decline, the demand for seafood imports has decreased sharply. Many businesses have signed contracts, but customers have moved, causing a lot of inventory. The decrease in exports slowed down the cash flow. Along with that, limited credit capital makes businesses not have the capital to buy raw materials or buy raw materials at the right price for farmers and fishermen.
Proposing solutions to overcome difficulties, Mr. Nam said, seafood processing and exporting enterprises mainly borrow USD. "Previously, the USD loan interest rate was below 3%, now it is over 4%. So I recommend reducing the USD loan interest rate. In addition, the Government needs a credit package of about 10,000 billion VND with low interest rate to serve purchasing materials, as well as psychological stimulation for farmers and fishermen to maintain production. This is only a phased solution, but it is very necessary in the current period, "said Mr. Nam.
Since the beginning of this year, Vietnamese businesses have actively participated in international seafood fairs in the US, EU and Japan as well as domestic trade programs, hoping to increase connections and attract more customers in the coming time and from there, seafood export turnover will gradually recover. However, the seafood industry is looking for a pedestal to stand firm in 2023 and recover when the consumption market gets better.
CK
Source: VITIC/haiquanonline.com.vn