VASEP: Celebrating 25 years of development and leaning towards sustainable development

The 25th anniversary is a chance for members of the Association to review the remarkable contributions of the business community to the national economy, propelling Vietnam to become one of the top 3 seafood exporters globally. Besides, assessing the opportunities and benefits of the member enterprises grasped after a long time accompanying on the VASEP boat.

The journey to conquer the highest peaks and establish a prominent global position has been long and challenging. After operating for 25 years, VASEP has successfully fulfilled its mission of supporting businesses, connecting with importers, and assisting government agencies, farmers, and fishers. Together with the seafood business community, we achieved an impressive milestone by surpassing $10 billion in exports for the first time in 2022. Vietnam seafood exports reached an astounding $11 billion, marking a remarkable increase of over 12 times compared to 1998.

The 25-year journey of non-stop efforts of seafood enterprises under the guidance and companionship of VASEP is proved by the acceptance of over 170 world markets for Vietnamese seafood products, including the largest and most demanding markets such as EU, USA, Japan, Australia, UK, China.

The number of 692 factories with EU export code out of a total of 847 industrial-scale factories certified to meet food safety requirements, has shown the outstanding maturity of Vietnam's seafood industry.

Since the early stages of exploring the market, VASEP has been supporting its member businesses and the entire industry in achieving significant milestones. This has resulted in a gradual increase in export sales, starting from 800 million USD in 1998, reaching 4.5 billion USD after 10 years in 2008, and nearly 9 billion USD after 20 years in 2018. The growth continued, eventually reaching 11 billion USD after 25 years.

A key factor contributing to this success has been the proactive approach of expanding the market through various trade promotion programs and participating in international and domestic fairs on an annual basis. VASEP and businesses have collaborated closely to overcome international trade barriers, thus promoting exports, enhancing competitiveness, and elevating the position of Vietnamese seafood in the global market.

Despite facing challenging waves on our journey to the sea, the unwavering leadership of VASEP’s Board of directors, combined with the solidarity and determination of seafood enterprises, guided the Vietnamese seafood boat through numerous storms. Notably, our presence in the international seafood market and the success of Vietnam's seafood industry can be attributed to key factors such as overcoming anti-dumping cases in the US involving pangasius and shrimp, as well as the strong cooperation and professionalism exhibited by VASEP and its affiliates. As a result, we have not only maintained our position in the world's largest market for shrimp and pangasius, but also secured favorable tariffs for numerous businesses.

Amidst the challenging currents that fisheries brothers and sisters, as well as associations, must navigate, there exists a smoldering and dangerous phenomenon: negative media and smear campaigns in foreign countries. These have persistently tarnished the reputation and image of Vietnamese seafood products for years, and may continue to do so due to the competitive nature of the marketplace. However, VASEP, in collaboration with the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, the Ministry of Foreign Affairs, and external agencies in various markets, is actively working to counteract this. Through proactive promotion, communication, and introduction of Vietnamese seafood products in international fairs, diplomatic events, and diverse media channels, we are gradually reclaiming the image and value of Vietnam's seafood products. Let this be a powerful inspiration for us to persevere and overcome these challenges together.

Let us face market challenges united and seize market opportunities together. Throughout the integration process, VASEP has showcased its position and global influence through active participation in Free Trade Agreement (FTA) negotiations. VASEP consistently engages and contributes to the negotiating team, particularly in the context of new generation FTAs. Notably, we not only focus on tax rates and reduction roadmaps, but also address crucial "barriers" related to TBT, SPS, environmental, social, and labor issues in the fisheries sector. VASEP provides careful advice in these areas. Moreover, VASEP stands as a steadfast companion and supporter to enterprises, offering guidance and support in the application, utilization, and elimination of obstacles during FTA implementation. We assist with matters ranging from rules of origin and C/O forms to compliance with environmental and labor regulations. Through regular and continuous communication, training, and seminars for the business community, we ensure a harmonious and successful journey in navigating the intricacies of FTAs. Let us march forward with determination, embracing these opportunities and overcoming any challenges that come our way.

While enterprises possess remarkable internal resources, there are still obstacles along their path of development. Many regulations, policies, and administrative procedures are inadequate or unsuitable for industry practices, differing from international standards and domestic legal regulations. These barriers tend to restrict businesses. In such instances, VASEP fulfills its role as a bridge, representing the voice of businesses and serving as a focal point for coordination and recommendations to ministries, sectors, and the government. VASEP effectively works towards removing inadequacies and obstacles for businesses and the industry as a whole.

Through active engagement with the government, the Ministry of Agriculture and Rural Development, and other ministries, VASEP participates in policy commentary, criticism, and collaboration. As a result, numerous issues, such as quarantine measures for imported aquatic products, food safety inspections, corporate income tax regulations, and standards concerning wastewater in processing and aquaculture, have been addressed and improved. These efforts have significantly reduced costs and resource burdens for businesses, enhancing their competitiveness. Together, we can overcome internal challenges, streamline regulations, and foster an environment conducive to growth and success in the industry.

There are more barriers and pressures that businesses and VASEP are and will continue to face and overcome together to maintain the strong development momentum of Vietnam's seafood in the coming years. That is the IUU yellow card and regulations and procedures for exploited seafood exported to the EU market; “IUU” regulations of Japan and the United States (SIMP), and this trend could continue in other markets.

Vietnam’s seafood position on the track is currently facing a "threat" as other seafood-producing nations emerge with increasing strength, establishing competitive positions through large supplies, lower prices, and robust government support. Our dominance in producing value-added goods cannot be sustained indefinitely as other countries rapidly advance and make continuous progress. Notably, Ecuador and India, in particular, are progressively capturing larger and more dominant shares of the shrimp market in key destinations such as the US, China, and the EU. 

However, we must not be discouraged by these developments. Instead, let them serve as a wake-up call and a catalyst for our own growth and innovation. By embracing change, enhancing our competitiveness, and exploring new avenues for development, we can adapt to the evolving market dynamics and maintain our position on the track. Together, we can rise above the challenges and secure a prosperous future for the Vietnamese seafood industry.

2023-2024: Silence before recovery

The period of 2023-2024 marks a period of silence before the anticipated recovery for Vietnam's seafood industry. Particularly in 2023, the industry faces multiple challenges including the impact of economic recession, global inflation, domestic production and processing difficulties, and intense competitive pressure from countries like Ecuador, India, and Indonesia. These factors lead to increased volatility, both in terms of fluctuations in demand and supply, which adversely affect Vietnamese seafood enterprises.

From a market perspective, there is a decline in demand, an increase in inventory levels, a decrease in orders, intensified competitive pressure, and a decrease in import prices. Internally, production costs rise due to increased prices of feed, seeds, labor, electricity, and water. Additionally, there is a decline in the supply of raw materials for farming and mining, further driving up production costs. Consequently, the profits of most businesses have plummeted, and some have even incurred losses.

Although this is a challenging period, it is crucial to remain resilient and focused. This silence before recovery serves as an opportunity to assess and strategize for the future. By identifying areas for improvement, streamlining operations, and exploring innovative approaches, we can position ourselves for a strong comeback and regain stability in the coming years. Together, we can navigate through this challenging phase and pave the way for a brighter future for the Vietnamese seafood industry.

 June 12, 2023 marks the 25th anniversary of the establishment of the Vietnam Association of Seafood Exporters and Producers (VASEP)

Seafood exports in the first 5 months of 2023 was 29% lower than the same period last year, only about 3.4 billion USD. Seafood export turnover in May 2023 reached over USD 808 million, the highest since the beginning of the year, showing a signal that the market is getting better. Exports of key commodities are gradually reducing the decline over the same period. Exports to key markets such as the US, EU, China, Japan, and South Korea all achieved the highest sales since the beginning of the year.

The above figures are not a sufficient basis to judge the trend of the coming months, but we still have the right to be hopeful and optimistic about the market angle in the second half of the year. The decreasing inventory, the tourist season, the year-end festival season and the demand stimulus programs in the markets are likely to boost the import volume gradually in the coming months. The key point now is do we have the raw material availability and competitiveness to seize the opportunity of the market to recover before other countries?

On that problem, on this occasion, VASEP enterprises will sit together, find a common voice, common solutions, and reflect on the communication to state management agencies and components in the seafood supply chain. products, to promote exports and thereby, together with farmers and fishermen, overcome this challenging year of 2023.

Together with the seafood business community, we achieved an impressive milestone by surpassing $10 billion in exports for the first time in 2022.

Towards a sustainable future

The international market, including Vietnam, has undergone significant changes in the post-Covid period, such as inflation, war, and currency fluctuations. These factors have affected the supply, demand, and trade in seafood worldwide. In this context, VASEP and its members are using this opportunity to identify and discuss the challenges ahead, as well as devise new strategies and approaches to promote sustainable development in the seafood industry within the digital technology and e-commerce era.

The upcoming challenges will be increasingly severe, and Vietnam's seafood industry aims for sustainable growth rather than simply conquering multiple markets. Achieving this goal requires a strong foundation across the entire supply chain, including seed, feed, farming technology, processing, consumption, and considerations of environmental protection, social responsibility, and employee welfare.

The Vietnamese seafood industry will continue to grow and evolve with VASEP as a capable and professional captain, supported by a united business community. However, with additional support from the government, ministries, associations, and other components of the seafood supply chain, the industry will become even stronger and more advanced. This collective effort will not only help achieve the export turnover targets of USD 12.5 billion - USD 14 billion in 2025 or USD 16 billion - USD 20 billion in 2030 but also enhance the reputation, quality, and position of Vietnamese seafood products in the international market.

Compiled by Thuy Linh