While Vietnam’s export of several key agro-forestry-aquatic products endured a sharp drop of 14.40 percent
HCMC – The number of orders and the export value of the aquatic products sector have plunged dramatically, though the year-end season usually witnesses a spike in demand.
According to a survey carried out online and in-person by vietnambiz.vn, 71% of some 117 seafood companies said the aquatic sector will be facing difficulties in manufacturing, processing and exporting in 2023. Meanwhile, 22% of enterprises consider such future hardships serious and the remainder with nearly 7% are optimistic about their sector in the near future.
The plunge in orders is due to foreign exchange rate volatility and monetary tightening.
Other factors such as the global economic downturn and increasing inflation could be attributed to a drop in consumption in the future. Besides, aqua-products exporters will encounter high competition from other exporters like Ecuador and India that export seafood products at more competitive prices.
Another difficulty that will be faced by the majority of Vietnamese seafood enterprises is their limited storage capacity. The situation may get worse, given the increasing inventories in the coming time.
In a seminar held on November 26 to deal with the drop in orders and interest rate hikes, 87% of the aquatic enterprises have opted for investments in technology for sustainable development. However, according to these enterprises, they fail to mobilize capital to deploy their solutions.
Vietnam’s major aquatic products importers are currently Europe, China, Japan and the U.S. In the coming time, seafood exporters will receive support from relevant agencies to look for more business opportunities in the U.S. market.
According to VASEP, Vietnam’s aqua-products exports are projected to reach over US$10 billion in 2023 given that the market blossoms at the end of the first quarter of next year.