Ten highlights of Vietnam fisheries industry in 2012

Some VASEP’s recommendations relating to certain policies were solved by the Government.

1. Seafood exports hit US$6.2 billion

Total seafood exports in the whole 2012 are expected to reach US$6.2 billion, up 1 percent from that of 2011. Seafood exporters made a lot of great efforts amid difficulties in capital shortage and lower demand of international markets since the early year.

2. Increase in marine product exports

In 2012, marine product exports estimated to record US$2.2 billion, up 14.5 percent from that of the same period of 2011. The value helped to compensate partly for decrease in shrimp and pangasius sales abroad. In the structure of exported marine products, mollusk was the only item reporting the slight reduction of 0.6 percent over the same period of 2011 while other items such as tuna posted a growth of 53.1 percent, other finfish (+23.4 percent), crab & swimming crab and other crustacean (+9.3 percent).

3. Nylon bags for packing exported goods are not subjected to environmental protection tax

Following a series of recommendations from VASEP and other associations on environment protection tax exemption and refund on plastic bags for packing exported products, the Government issued the Decree No. 69/2012/NĐ-CP on 14^th September 2012 regulating that PE bags for packaging exported products enjoy free environment protection tax.

4. Exporters continued to enjoy imported tax payment grace in 275 days if they can satisfy four conditions

On November 20^th 2012, the National Assembly (NA) passed the Law on the Amendment and Supplement to a number of Articles of the Tax Management Law.

Accordingly, the Law amended and supplemented the Article 42 of current Tax Management Law on the 275 day grace period for imported goods and materials used for producing goods for export. To enjoy 275 day grace period, businesses must satisfy 4 conditions set by the amended and supplemented Law. Initially, the draft of the Law revoked the grace period. This would create many obstacles for businesses.

Following VASEP and some business Associations’ suggestions, MOF proposed the Government to petition NA on adjusting some rules in Tax Management Law to ease obstacles for enterprises.

5. Pangasius industry reached the sustainability target under ASC

Till the end of November 2012, Vietnam pangasius sector completed the 2012 target that 10 percent of its farmed pangasius was certified under the Aquaculture Stewardship Council (ASC) and it is striving to have 100 percent of its farmed pangasius certified by 2015, with 50 percent of this under ASC. ASC confirmed that pangasius is farmed responsibly. Farming fish under ASC standards will minimize bad effects to environment, workers and nearby communities.

6. Shrimp exports to Japan deeply declined due to Ethoxyquin

On May 18^th 2012, Japan decided to inspect 30 percent of Vietnam shrimp consignments imported into the market with maximum residue limits of 0.01 ppm. Since August 31^st 2012, 100 percent of Vietnam shrimp consignments were tested Ethoxyquin by Japan authorities.

Therefore, in six consecutive months (starting from July 2012), shrimp exports to the market sank by 1.4 – 16.6 percent over the same period of 2011. Despite efforts of Ministry of Agriculture and Rural Development, VASEP and seafood enterprises to solve the problem but the result was not as expected.

7. Shrimp farming was badly affected by Early Mortality Syndrome (EMS)

In 2012, brackishwater shrimp farming on the large scale was heavily hit when up to 100,766 hectares of shrimp farming were lost by EMS. According to Directorate of Fisheries (D-Fish), mainly loss occurred in industrial shrimp farming and 45.7 percent of shrimp farming area was attacked by Acute Hepatopancreatic Necrosis Syndrome – AHPNS. The others was due to White Spot Syndrome virus or Yellowhead virus.

D-Fish is striving to find out solutions for shrimp diseases and EMS is expected to be removed in 2013.

8. Pangasius farming faced difficulties in capital

In 2012, capital shortage caused troubles for fish farmers and processors. Fish farming areas were narrowed, many processors must suspend production, leading bad effects on life of many workers.

Pangasius exports in the year expected to reach US$1.8 billion, equally to the result of the previous year.

9. Nearly300 seafood exporters suspended operation

The number of Vietnam seafood exporters in 2012 reduced by 300 ones from over 900 to over 600.

Enterprises which were out of business are mainly commercial companies and exporters facing hardship in capital and import markets. This reflected bottlenecks in enterprises’ seafood trade and exports and it is necessary for them to restructure to overcome difficulties.

10. The U.S. becomes the largest importer of Vietnam seafood

In 2012, the U.S. outstripped EU to become the largest importer of Vietnam seafood with the growth of 5.4 percent in export value from the same period of 2011. Seafood exports to EU sharply reduced since the early year.

The U.S. was the largest importer of Vietnam tuna and the second largest importer of shrimp and pangasius.