Capital shortage is a typical question in the aquaculture industry. Representatives from Associations of aquaculture enterprises in the Mekong River Delta have suggested several solutions to the Government.
Lack of capital in every phase of business
As reflected, all enterprises in the aquaculture chain are hungry for capital. Food processing and veterinary medicine manufacturing companies are unable to support fish breeders by paying for fish food in advance. Small and medium processing companies have insufficient funds to buy fish varieties with high interest rates and fluctuated exchange rates, thus they produce at low efficiency and operate half-heartedly to keep workers. Even big companies with financial power can not purchase all the sources of fish varieties during harvest time.
Those difficulties are a burden on breeders. There are even cases of banks stopping lending immediately after fishermen pay due debts.
Over the past month, unit price of shutchi catfish has been rising, but export price of shutchi and yellowtail catfish dropped. That means unfair competition among exporting companies. Some enterprises, taking advantage of breeders’ difficulty in abiding by their terms and conditions, delayed payment and bought material fish at lower price than market price. Households that want funds in advance will have to pay rate of 3 per cent per month.
Mr Phan Van Danh, President of An Giang Fishery Association (AFA), said that Decree 346/QD-NHNN on February 13th, 2008, signed by Governor of State Bank on anti-inflation and price control was responsible for this problem. As estimated by representatives of the fishery industry in the Mekong River Delta, fishermen’s losses have reached nearly VND200 billion since the decree came into effect. This figure will keep growing unless the aquaculture industry finds solutions.
Apply the same monitoring as in the case of rice export
Another suggestion put forward by enterprises is that the Government manage fish export the same way they do with rice. This means a unique monitoring should be applied in the whole fish industry. Tightening or loosening policies should depend on domestic production and overseas market fluctuations. The representative from Dong Thap Fishery Association added that a floor price for shutchi and yellowtail catfish was needed. Any company offering a lower price would be punished by higher tax or other administrative measures.
The companies have come to agreement of proposing three key suggestions to help fish export become more efficient, including:
First, the Government and State Bank instruct commercial banks to extend debts provided to shutchi catfish breeders for one more quarter, and to increase funds for at least 30 per cent of the contracts.
Second, give fund priorities to small and medium enterprises who sign contracts of purchasing fish varieties. These enterprises can even raise more funds to invest in storage.
Third, the State Bank buys back foreign currencies at the exchange rates applied to aquaculture processing and exporting companies (making use of the Government’s policy on buying foreign currencies at rates offered by the State Bank from production-originated business lines).
Nguyen Thanh
Vietnamese
