At the workshop "Evaluating Effects of Two-Year WTO Membership on Vietnam's Economy, Especially on Sustainable Development of Aquatic Production and Business - Vision to 2020" currently held by the Ministry of Industry and Trade in coordination with the National Administrative Institute, many key issues have been analysed in detail. Big and emergent directions to help the Aquiculture to firmly step in the new era are also mentioned.
Facing many difficulties
After two years of joining the World Trade Organisation (WTO), the aquiculture of Vietnam has made outstanding development, affirming its position in hard-accessible markets like the EU, Australia, and Russian, and becoming one of 12 exported articles to earn turnover of US$1 billion upwards. However, the global economic crisis has reduced the consumption demand in big markets as well as the import demand in these markets.
Luong Le Phuong, Vice Minister of Agriculture and Rural Development, also said that importers of seafood from Vietnam were encountering problems due to economic deterioration and lack of capital leading to credit contraction and unforeseeable fluctuations. Therefore, exporting companies face a big risk of canceling contracts. Furthermore, heavy harbour and container congestion made huge impact on the progress of delivery. However, businesses pointed out that they should stay calm to find solutions to clear way for the exportation of domestic aquatic food.
The targeted export turnover of US$4.52 billion set by the Ministry of Agriculture and Rural Development in 2008 is feasible as customers tighten their consumption, shifting to cheap products to overcome the financial crisis. This is a good opportunity for our catfish to affirm its position.
US$6 billion by 2020: realisable or not?
At the workshop, Dr Nguyen Thi Hong Minh, VASEP's honour Chairman, said: Our enterprises slowly updated, revised and implemented standards and regulations suitable to new requirements of exportation and the WTO. Moreover, there is a lack of friendly relationship in the business community and environment. It is the attitude of every man for himself, unfair competition, dumping and fighting for customers that causes hazards and risks for our aquiculture to lose its position in the international market.
Furthermore, the organisation remains unprofessional. Overlapping and confusion still exist in the state management system, communities, cooperatives, and associations, which are inconvenient for companies and household businesses.
Shrimp and yellowtail catfish are the two products accounting for more than 60 per cent of the export value but weak in barrier of breeding technique and production models, thus unable to utilise their inherent potential. Lawsuits against anti-dumping on yellowtail and sutchi catfish, and shrimp provide a lesson that trade disputes will arise when participating in the world market with competitive and huge output. To settle these disputes needs a thorough understanding of law in importing countries. More importantly, businesses should cooperate during the process of dispute settlement, organise local production, and proactively regulate the exporting markets.
“Having both feet on the ground” in the development orientation to 2020, enterprises in the Vietnam aquiculture must improve their competitiveness and equip themselves with necessary scientific and technical knowledge and economic logic in the period of integration to realise the targeted export turnover of US$6 billion by 2020.
Thanh Tam
Vietnamese
