Yesterday, representatives of the Ministry of Agriculture and Rural Development, Finance and Development Bank and the Association for processing and exporting seafood (VASEP) meet in closed session to discuss measures to save fish industry.

40% of the companies left the market

According to VASEP, the first five months of 2012, seafood exports reached more than US $2.3 billion, up more than 11% over the same period last year.

However, the fishery is facing many difficulties in raw materials, capital, market, competition, profits reduced. In the first quarter this year, the number of companies involved in exporting seafood down 330, just over 470 companies, down 40% over the same period last year.

Exports to the EU market of the 130 largest seafood market Vietnam was down 7.9% over the same period last year. The proportion of seafood exports to this market fell nearly 5% (or 19.7%).

Two staples are shrimp and fish are significantly reduced. Some other seafood such as tuna, squid, octopus to this market remains positive.

Talking with Tien Phong, Duong Ngoc Minh, Chairman and CEO Hung Vuong Joint Stock Company, said Vice President Vasep, due to tight credit, high interest rates pushed up.

Therefore, enterprises are forced to sell below cost to remove material, get money to pay bank debt and avoid overdue. "The Vietnam VN catfish died of monetary policy. Interest rates, the cost of the first 6 months this year compared to same period last year to double team. Such interest last year in the first 6 months of 12-13% amplitude , but six months of this year jumped to 19-20%, along with environmental taxes, fuel, electricity, labor costs rise ... Thus, the cost increases, the pump is not enough capital, so any subject company of the bank loan can we live always".

According to VASEP, only about 30% of seafood processing plants and shrimp fishing activities are 70% more capacity, the remaining 30% work less than 50% capacity, 20% work less than 30% capacity / day, 20% is not nearly as inactive.

Grouping businesses to save

The time is divided Vasep companies operating in the 3 groups to restructure. Accordingly, group I, the group is growing and making a profit, approximately 20% of companies, is the investment firms the right direction in fisheries (aquaculture, processing, export ...), with the share 2 times rate loan capital. Particularly fish, there are 70 companies, then only about 15 companies in this group.

Group 2 is the group "is a contract, the borrower up to 4", is difficult, accounting for 50%.

"The rate of such loans is not sufficient to pay interest. Not to mention, he used the short-term capital, to his long-term investment. We are asking banks to restructure their capital, capital can move the medium term. short-term working capital of businesses are missing, the bank can inject their activities gradually recovered bank debt, "Mr. Minh said.

The remaining approximately 30%, almost entirely dependent on loans. This group, Vasep ask the bank to accept losses, the company sold the plant to recover the debt for this group, has resolved to maintain the group 3 production, labor, which the bank has the ability to recover debts.

Talking to Pioneer after the meeting, Mr. Vu Van Tam, Deputy Minister of Agriculture and Rural Development, Fisheries and General Director said that the difficulty of the fishery has been seen. MARD is working with Vasep, ministries, banks, to find solutions.

However, the introduction of policies for farmers and businesses need to be vigilant, to not violate international principles, not to distort macroeconomic policies.

The key is access to capital. "Even though banks have cut interest rates, but to farmers and businesses access to capital is not easy. Currently, the bank's trust with processing enterprises, farmers, after the Binh An Seafood exporters insolvency , is not simple. So now he wants farmers definitive purchase, not for fish processing enterprises owe money again "- Mr Tam said.

According to Mr. Tam, in the long run, the fishery should be reorganized in the import export, domestic production of raw materials, science and technology.

Need to reorganize the export market, not to a lot of companies offering market prices freely as now; consistency of quality, brand name of Vietnam's catfish.

On the other hand, to reorganize the domestic production, the product chain, a mechanism to share risks and profits between the stages in the chain.

Also, on science and technology, should seek to replace all current varieties in seed quality.

By Pham Anh
Tien Phong