Developing pangasius as a conditional industry

After a year of public comment period, the draft Decree was submitted to the government on October 14^th, 2013. However, there were some issues in this decree cannot bring a leverage to drive Vietnam pangasius industry towards a sustainable development, according to VASEP.

On November 18^th, 2013, the Association sent the Prime Minister the Official Letter No.248 on a petition regarding its three recommendations on the decree as the follows:

Pangasius production and exports

Among 236 pangasius exporters in Vietnam, there are currently about 94 companies owning processing plants, but they contributed 90 percent to national pangasius export value. Export companies without processing plants accounted for only 10 percent in value.

These players are purchasing low quality fish to process products and sell them at low price to compete with other suppliers. This leads to negative impacts to the whole pangasiu industry, especially to the image and price of the fish in the global market.

To solve this problem, according to VASEP, only pangasius companies with their own processing plants, which meet regulations on food safety and traceability, are eligible to sell products to foreign markets. The solution is believed to maintain the supply-demand balance as well as efficiency management of pangasius production and exports.

Regulations on water content and glazing in exported pangasius

Currently, Vietnam provides various kinds of pangasius products from frozen fillets to value-added items. However, fish fillets made up of over 90 percent in exports to key markets. Therefore, a set of general quality standards is needed to protect the prestige and image of pangasius fillets in the global market, as well as contribute to preventing over glazing in exported fish.

VASEP required the Prime Minister to assign a ministry to be responsible for setting up the standars and monitoring the implementation of these compulsory standards on product quality in the nationwide.

Regulation on the role of the Association in management of pangasius processors and exporters

In its third recommendation, VASEP requested the Prime Minister to direct the MARD and Ministry of Industry and Trade (MOIT) to reconsider and regulate the Association’s essential roles in monitoring their members’ implementation of regulations relating to pangasius production, export and markets in the Decree.

VASEP was an association for seafood production and export, which has 15 years in supporting seafood companies in the development and maintaining export markets, improving production and global integration capacity and combating against international trade barriers.

VASEP’s members are leading pangasius producers, processors and exporters, which consist of key driven to lead the fish industry towards a sustainable development. These companies have been actively providing more than 60 percent of their needs of raw fish for processing and contributing over 80 percent to national pangasius export value. Many of them are focusing on investments in a closed pangasius value chain, which is seen as the base of a comprehensive pangasius quality and export governance.