AsemconnectVietnam - Fishery output in the second quarter of 2023 was estimated at 2,370.4 thousand tons, up 1.6% over the same period last year. Specifically, fish reached 1,680.5 thousand tons, up 1.2%; shrimp reached 352.3 thousand tons, up 3.8%; other aquatic products reached 337.6 thousand tons, up 0.9%.

Generally, in the first 6 months of 2023, fishery output was at 4,270.5 thousand tons, up 1.7% over the same period last year.

Aquaculture production in the second quarter of 2023 reached 1,311.2 thousand tons, up 2.5% over the same period last year. Specifically, fish reached 851.2 thousand tons, up 1.8%; shrimp reached 313 thousand tons, up 4.2%. In the first 6 months of 2023, aquaculture production was estimated at 2,336.4 thousand tons, up 3% over the same period last year.

Although the price of raw pangasius in the Mekong Delta provinces tends to decrease in the first 6 months of 2023 due to low demand from import markets, pangasius output increased over the same period last year. Pangasius production in the second quarter of 2023 was estimated at 436.9 thousand tons, up 1.6% over the same period last year; in the first 6 months of 2023, it was estimated at 789.3 thousand tons, up 2.2%.

Along with pangasius, the price of raw shrimp in the Mekong Delta also tends to decrease.Vannamei farmers have been transitioning from intensive farming to super intensive farming or intensive farming with higher densities. The output of whiteleg shrimp in the second quarter of 2023 was estimated at 221.8 thousand tons, up 5.3% over the same period last year; Black tiger shrimp production reached 71.5 thousand tons, up 0.8%.

Thus, in the first 6 months of 2023, the output of whiteleg shrimp reached 315.2 thousand tons, up 5.2% over the same period last year; Black tiger shrimp production reached 119.3 thousand tons, up 1.2%.

The wild-caught output in the second quarter of 2023 was estimated at 1,059.2 thousand tons, up 0.5% over the same period last year, fish reached 829.3 thousand tons, up 0.7%; shrimp reached 39.3 thousand tons, up 0.3%. The output of marine fishing in the quarter was estimated at 1,013 thousand tons, up 0.3% over the same period last year. Generally, in the first 6 months of 2023, fishery production was estimated at 1,934.1 thousand tons, up 0.2% over the same period last year.

In the dispatch sent to the Ministry of Planning and Investment regarding the situation of seafood production and export, as well as proposed solutions to overcome difficulties, VASEP stated that exports have decreased by 20 - 50%, resulting in high inventories.

Vietnamese seafood enterprises continue to be under heavy pressure. The consumption market has dropped, causing a drop in export prices. Moreover, domestic production and processing are burdened by rising costs and interest rates.

Businesses in the seafood industry will face a major challenge: a severe shortage of raw materials for shrimp and fish in early 2024. Despite the projected market recovery, farmers are currently unable to sustain adequate production levels.

At the meeting on supporting capital for seafood and forest product enterprises, VASEP proposed a stimulus package of VND 10,000 billion for aquaculture in the Mekong Delta. This package aims to help businesses purchase raw materials for future export in 2023 and the first quarter of 2024. By implementing the stimulus early, it will provide assurance to farmers, allowing them to continue stocking instead of hanging ponds.

To assist businesses during the "recession", VASEP proposed the Government, Ministry of Finance, and State Bank lower the USD loan interest rate to less than 4% and the VND lending interest rate to below 7%. This will encourage investment, boost production, and stimulate the purchase of aquatic materials for farmers and fishermen.

In addition, it is necessary to review procedures and consider having special preferential credit packages for small aquaculture households with appropriate interest rates to avoid farmers having to take loans with extremely high interest rates, due to lack of access to loans from banks.

Simultaneously, creating favorable conditions for seafood businesses to obtain a loan extension of 4-6 months for loans scheduled to be repaid between the 2nd and 3rd quarters of 2023. This allows them to continue borrowing within the specified limit, considering the decrease in exports during the first half of the year. This extension enables businesses to ensure a steady supply of raw materials from farmers and fishermen, as well as process and store goods in preparation for future export opportunities in the upcoming quarters.

Compiled by Thuy Linh

Source: Vasep