Vietnam pangasius industry hope for a new decree

News 10:42 13/09/2014
(pangasius-vietnam.com) Over recent three years, a lot of pangasius farmers, processors and exporters have got trouble in their business or faced bankruptcy due to downing import trend in consumer markets. The U.S Department of Commerce’s higher antidumping tax on frozen pangasius fillets also made the industry unstable.

Building up links in production chain

During the tough economic time, building up links among stakeholders in the industry is the best way to help fish producers in Mekong Delta avoid business losses, said Nguyen Minh Thanh, Deputy Head of Can Tho Department of Agriculture and Rural Development.

Can Tho city totaled 818 hectares for pangasius farming, in which 13 local companies owned 192 hectares, 5 cooperatives and a group of farmers with 140 hectares, 15 farming households having supply contracts with processors (35 hectares), and 182 other individual farmers (414 hectares).

“Exported pangasius products made up a major part in Vietnam’s seafood export value. A downtrend in exports affects livelihood of farmers, workers, processors and exporters in the industry,” said Vo Dong Duc, General Director of Can Tho Import-Export Joint Stock Company (Caseamex).

Many companies created their own closed production system from pond to table, but this model required a huge amount of capital to invest in fish farms, processing chain and export activities. In the tough economic context, fish companies are suffering doubled losses. Therefore, building links in the pangasius value chain, especially between farmers and processors is the good way for the pangasius industry.

Currently, Vietnam needs more appropriate regulations in order to manage pangasius production and prevent the spontaneous expansion of farms and processing factories. Therefore, it is necessary to timely issue a new decree on pangasius production and exports – a legal base for localities to develop pangasius production.

After 20 years of remarkable development, pangasius production and exports are witnessing tough difficulties. To stabilize and develop Vietnam pangasius industry, it is important to balance the supply and demand of this kind of products.

As pangasius brought back high profits to the industry, many farmers invested in pangasius farming, leading to fish oversupply and huge losses in the industry. Despite this fact, many of them are trying to keep business and wait for profits. If strict regulations are not imposed, it will be hard for authorized agencies to manage superficies for spontaneous fish farms to stabilize prices.

A timely decree on pangasius production and exports is an urgent need. With conditions for organizations and individuals involving in fish cultivation, it is a legal tool to help regulatory agencies restructure the pangasius industry.

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