Productivity, efficiency of pangasius production compared with European salmon, seabass, seabream

News 11:44 08/10/2018
This is the presentation of Dr. Nguyen Ngoc Duy from Nha Trang University, Vietnam in the Conference “European seafood production and markets” in the framework of Vietfish 2018

Production and export volume of Vietnamese pangasius, and average export price

 

Pangasius production in selected countries

 

Top exporting markets of Vietnam pangasius (VASEP 2018)

Salmon production

 

Sea bass and sea bream production

Questions:

The decrease in the market share of the pangasius in EU market and export price to EU: Why?

Quality of pangasius products? (seafood quality, hygiene, safety standards, traceability, environmentally friendly manufacturing, TBTs…). Brand strategy?

Is the reason the recent more competitive pressure on the pangasius in the EU market (more substitutes, competitors, unfavorable reputation, and mass media)?

Competitive capabilities of Vietnam pangasius firms?

Efficiency and productivity are the key success factors, reflecting competitive capabilities of a firm. What are the efficiency and productivity of Vietnam pangasius firms??? 

Objectives

To estimate technical efficiency (TE) of Vietnamese pangasius firms

 To estimate total factors productivity (TFP) of Vietnamese pangasius firms

 To compare TE and TFP among the pangasius firms

 To compare TE and TFP between the Vietnammese pangasius firms and European salmon, seabass and seabream firms.

Method

 

Data

 

Results

Main conclusion

TECRS = 0.677 and TEVRS  = 0.794  Vietnam pangasius firms could have reduced input by 32.3% (CRS condition) or 20.6% (VRS condition) while maintaining the same level of output.

SE = 0.855  Vietnam pangasius firms operated at far below level of optimal scale efficient level. It implies the firms could increase their efficiency by 14.5%.

More than half of Vietnam pangasius firms have efficiency scores lower than the industry average and these firms are wasting a lot of resources on their assets and liabilities, in which the greatest wasting resource is non-current liabilities.

The annual average increase in TE (8.1%/year) and technological improvement (5.5%/year) has resulted in TFP growth of 14.1%.

About 60% of the Vietnam pangasius firms have average productivity increase, the others get productivity down. The small and medium firms were experienced the largest TFP improvements.

The technical efficiency and scale efficiency of the Vietnamese pangasius firms appears lower than those of the Norwegian and UK salmon firms

The Vietnamese pangasius firms have wasted more input resources than the Norwegian and UK salmon firms. 

But despite this the Vietnamese pangasius firms has been experiencing rapid productivity growth in comparison with their competitors in EU. 

 

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