Vietnam Development Bank ready to support pangasius industry

The VDB’s objective is to help large and small-scale fish farmers and enterprises having their own farms to keep business and reach the production of 800,000 MT in the last eight months of 2012; and support seafood companies to store finished products on purpose of getting higher export prices. Besides, the bank will assist healthy companies to re-buy other cash-strapped ones in an effort to avoid bankruptcy, ensure in-time payment in purchasing raw materials and export, as well as remain jobs for workers.

The bank’s financial aid aims to companies with pangasius processing plants and having export contracts. Companies owning large-scale fish farming area or completed production chain; large-scale fish farmers having contracts with processors; small-scale farmers linking closely with processors; and others in the production chain.

In the last eight months of the year, Vietnam pangasius industry expects to produce 800,000 MT of raw fish. In which 50 percent of fish comes from farms owned by fish processors, 20 percent from large-scale farmers and the rest 30 percent provided by small-scale suppliers.

According to VASEP, fish companies need an amount of VND10,000 billion to buy 400,000 MT of pangasius supplied by farmers at an estimated price of VND25 million per MT. VASEP urged VDB to provide fish processing companies with a financial rescue package valued VND10,000 billion with loan term of six months and preferential rate of below 10 percent. The borrowers will receive money along with their purchasing time.

Financial package for enterprises having their owned fish farms is estimated to total nearly VND7,000 billion, in which VDB would offer an amount of VND5,000 billion, equal to 70 percent with eight month loan term.

VASEP asked VDB to lend VND5,000 billion in favour processing companies. The bank was also called to help circle bad debts, re-buy these companies’ debts in other banks, as well as support companies to store products in order to boost export prices.

VDB is a policy bank with its goals of sustainable development. So far, it has made an active and important contribution to the creation and development of Vietnam pangasius industry and remained a reliable partner of pangasius business community.

Earlier, VASEP’s Vice Chairman Nguyen Huu Dzung had a meeting with VDB’s leaders to discuss VASEP – VDB cooperation program on supporting pangasius companies. At the meeting, VDB expressed its hope to work closely with VASEP to develop pangasius industry in both short and long terms. Two parties will outline and sign an official cooperation agreement soon.

In 2011, Vietnam totaled US$1.8 billion of pangasius export value, 45 times higher than US$40 million in 2001. With proportion of 30 percent in Vietnam total seafood export, pangasius ranked the second place after shrimp sector. However, in the first months of 2012, many pangasius exporters fell in financial troubles and need effective measures to get out of the tough time and improve competitiveness in international markets.