Hanoi — The Vietnam Association of Seafood Exporters and Producers (VASEP) has requested finance assistance for seafood businesses, whose export revenue is expected to reach a 20-year high this year.
Despite challenges in 2022, VASEP stated in an official dispatch sent to Minister of Agriculture and Rural Development (MARD) Lê Minh Hoan last week that seafood exports have significantly recovered and developed, reaching a turnover of US$9.5 billion by the end of October, up 34% over the same period last year.
After more than 20 years of participation in the global market, it is anticipated to exceed $10 billion by the end of November, a historic milestone for Viet Nam’s seafood business. It is anticipated to increase by 25% from 2021 to almost $11 billion by the end of the year.
However, VASEP also noted that enterprises in the seafood industry confront a number of difficulties that have a significant influence on their operations, such as lowering and reducing commercial bank credit limitations.
According to VASEP, even though many businesses’ credit limits were just 60 to 80 percent of the loans given, numerous branches of commercial banks have significantly reduced credit to seafood enterprises since the middle of 2022 and notably currently.
According to the group, many large businesses with significant capital requirements could not afford to buy the raw materials and products needed to produce aquatic goods. The growth and export of the industry are impacted as a result, and several enterprises have forced to halt the construction of their seafood manufacturing facilities.
According to VASEP, small, medium, and micro-sized businesses face even tougher conditions to meet the bank’s requirements for capital disbursement, particularly preferential capital sources, than large-scale enterprises do.
Businesses are not permitted to obtain new loans if they cannot pay off their existing debts to commercial banks, according to Nam.
According to the report, because of the unexpectedly rapid expansion in seafood production and exports at the start of 2022, it will be challenging for businesses to balance the increasing demand for cash without adjusting their access to bank credit.
Thus, VASEP suggested that the Government and MARD think about and come up with measures to raise the credit level for the industry as a whole.
Additionally, it was suggested that the State Bank of Vietnam instruct commercial banks to make it possible for businesses that deal with seafood to continue to access standard loans both now and in 2023, when seafood exports are expected to recover and grow.
The association urged the government to implement supportive measures at the same time to stabilize the costs of aquaculture inputs, particularly feed, breeding stock, and energy for exploitation, as well as to adjust the US dollar exchange rate flexibly and appropriately and lower domestic logistics costs.
The current labor scarcity in industries, which impacts production schedules and delivery obligations and makes it challenging to grow capacity, is also a problem for the business community, according to VASEP in the official dispatch.
The association suggests that the government give businesses a land fund so they can construct housing for staff members and improve social welfare in the urban industrial park.
According to the group, a legislative framework is required for businesses to hire foreign workers in accordance with the circumstances of the sector.
The media reports that benefits brought about by free trade agreements (FTAs) have assisted numerous regional seafood businesses in transforming obstacles into possibilities. This year, the sector is expected to account for 3% of all exports from the nation.
After China and Norway, Viet Nam is currently the third-largest exporter of fishery goods worldwide, according to VASEP. With the findings achieved, its seafood exports are anticipated to hold a market share of more than 7% worldwide.
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