HCM City (VNS/VNA) - Despite huge challenges, the seafood sector in2022 posted a new record in export value of 11 billion USD, up 24% year-on-yearand 22% higher than the year’s target of 9 billion USD.

Le Hang, communications director of the Vietnam Association of SeafoodExporters and Producers (VASEP), said that this was the highest export value inmore than 20 years.

Of the amount, shrimp exports hit a record 4.3 billion USD, pangasius exportsreached 2.4 billion USD, and tuna exports were 1 billion USD, she added.

Vietnam’s largest seafood export markets are the US, Japan, China and the EU.

Seafood exports to the US reached more than 2.1 billion USD last year.Meanwhile, exports to China hit a record 1.8 billion USD, up 57% year-on-year.

Exports to the EU and the Republic of Korea brought in 1.3 billion USD and 950million USD, respectively.

Seafood exports to ASEAN countries reached 767 million USD, up 27%year-on-year.

Challenges ahead

According to Hang, inflation is forecast to greatly affect consumer sectorsglobally, reducing seafood exports in the first quarter of 2023.

The seafood industry will also face tough competition from competitors thatoffer lower costs and prices such as Ecuador and India.

Export orders have fallen sharply, and many seafood processing enterprises havenot received contracts for the first quarter of 2023.

Market demand will not recover until at least the second quarter or the secondhalf of 2023, according to the director.

Seafood businesses are also facing problems accessing loans. Many largeenterprises with large capital needs can not afford to purchase aquaticproducts and materials for production.

Some must operate at half capacity, affecting the industry’s growth andexports. Some businesses have had to stop construction of their seafoodproduction facilities.

Currently, 279 members of the association, which contributed more than 80% ofthe country’s total seafood exports, are having difficulties in accessingloans.

Hang recommended exporters search for new export markets that are less affectedby inflation such as ASEAN countries, the Middle East and the Comprehensive andProgressive Agreement for Trans-Pacific Partnership (CPTPP) countries.

Exporters should focus on China, a traditionally lucrative market which is nolonger following the “zero COVID” approach, and facilitate exports to thismarket.

Vietnam is currently the world’s third largest exporter of fish products, afterChina and Norway.

Seafood exports are expected to hold a 7% share of the total seafood exports inthe global market, according to VASEP./.