Vietnam seafood confirms the leading position on the world market

Along with producing raw material locally and importing for processing and re-exporting, Vietnam fisheries sector continue confirming its position and increasing prestige on the international arena.

With the strength of processing – exports, Vietnam’s fisheries sector has maintained its growth rate of exports at 10% -20% / year. Thus, seafood ranked 5th in export turnover nationwide.

Seafood processing industry has made great contribution to Vietnam’s socio-economic development such as creating jobs, directly contributing to macroeconomic stability, reducing trade deficit through importing raw material for processing and re-exporting. In order to meet the target of export value reaching US$10 billion by 2020, Vietnam will have to import raw material worth about US$2 to US$2.2 billion for processing and re-exporting.

Vietnam has been the destination of the majority of the world’s seafood importers since it has built a reputation for its high quality of seafood product and has more advantage of processing technology and skilled workers than most countries in the region and in the world. In order to deal with the shortage of raw materials for processing- exporting (about 30-40%) and to meet customers’ demand from the markets, Vietnamese seafood processers and exporters have decided to increase raw material imports for processing and re-exporting, which promotes Vietnam’s seafood export turnover, creates stable jobs for workers and takes full advantage of processing capacity.

In the period 2010-2015, raw material imports saw a sharp increase both in volume and value, from US$ 325 million in 2010 to US$1.06 billion in 2015. Raw materials for processing and re-exporting accounted for 7-14% in the Viet Nam’s total seafood export turnover. According to economic experts, this trend will continue to rise to address effectively the goals of economics and competitive advantages in processing. The import value is expected to reach US $ 1.1 billion in 2016, contributing to achieve the target of US$ 7 billion in seafood exports. It could be affirmed that the raw material imports for processing re-exporting is a part in purchasing plan of Vietnamese seafood processors, which could help Viet Nam meet the target of seafood export turnover increasing.

Additionally, raw material import for processing and re-exporting has created permanent jobs for locals as well as addressed the shortages of raw materials. Also, it is one of the enterprises’ solutions to fulfilling the orders, especially when it is not the time for harvesting at the locals; at the same time, it could help enterprise solve other problems such as size, price and quality and make them possible to meet the requirements of the orders.

Therefore, raw material import for processing and re-exporting is considered as practical activity, the inevitable trend not only in Vietnam but also in many other exporting countries in the world. In order to facilitate this activity, Vietnam will continue to find solutions for tackling obstructions such as regulations on labeling and quarantine.

[Source: The Directorate of Fisheries]

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