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BUSINESSES START EXPORT ACTIVITIES AT THE BEGINNING OF THE NEW YEAR
MANY BUSINESSES HAVE OFFICIALLY RESUMED OPERATIONS AND ARE STARTING TO EXPORT GOODS.
The processing plants are currently working hard to meet orders and prepare for the first export shipments of the Lunar New Year immediately after returning to work after the long holiday.
The good news at the beginning of the year is that a series of seafood stocks increased at full amplitude on February 26 after VASEP and businesses announced positive results for the export situation in the first month of the year.
Accordingly, in January 2024, seafood exports increased by 64% compared to the same period in 2023, reaching 750 million USD. In particular, the main products all had a significant breakthrough compared to the same period last year: shrimp increased by 71%, pangasius increased by 97%, tuna increased by 57%, BT squid increased by 45%, other types of fish increased by 50%.
Regarding markets, the most breakthrough growth is China & HK: increased more than 3 times, exports to the US increased 63%, to Japan increased 43%, to the EU increased 34%...
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Although many businesses say the market has not really improved and there are still many difficulties, the high growth numbers of the first month of 2024 still bring feelings of confidence and hope for a stronger recovery this year. now.
There are still problems that seafood exporters face such as oversupply, high inventory, low purchasing prices, great competitive pressure... But we can hope that in the second half of the year the selling price will be better when quantity increases. Inventories decreased, market demand recovered.
New challenges such as the tensions in the Red Sea are causing a lot of difficulties in the transportation of goods in general and seafood in particular, as freight rates are increasing. The high selling price will greatly affect the decision to buy goods. Currently, businesses are considering exports to nearby markets to reduce transportation costs.
THE CHANGING MARKET LANDSCAPE AND BUSINESS ADAPTATION
Covid, inflation and geopolitical fluctuations such as the Russia-Ukraine war and the Red Sea conflict have changed the landscape of the seafood market. Some developments, such as the ban on Russian seafood by the US and EU, make China the target market for Russian enterprises, more or less reducing the market share of other countries on this continent. Or China's ban on Japanese seafood imports or the US and EU's warnings about forced labor at Chinese processing factories are the factors that push Japanese, American and European businesses to look for partners in Vietnam.
These changes are both challenges and opportunities. Therefore, businesses should also reconsider their market strategy. In particular, the domestic market is truly potential with a population of 100 million people and a living standard that is getting better and better. Potential purchasing power is not only in retail channels and service channels but also in the fields of restaurants, hotels, tourism, traditional markets, residential areas...
Second, the export market should also be re-evaluated according to new perspectives and new trends, not being too dependent on traditional markets to suffer intense competitive pressures and strict regulations and barriers.
For example, China is a large market, with a large population, increasing demand due to the growing middle class, favorable geographical location... but in the impression or prejudice of many businesses, many businesses view China. It is a volatile market, risky in payment, only likes to buy cheap goods, difficult to compete with other countries...
In fact, this large country has many different market segments so we can access a variety of products with suitable qualities and prices.
In addition, we also have other market opportunities, such as market segmentation for dry goods, canned goods for war-affected areas, high inflation or opportunities in markets located near like ASEAN countries, reducing losses due to increased transportation costs...
With the flexibility and adaptation of seafood enterprises, it is hoped that in 2024, seafood exports will be higher than in 2023, possibly reaching the 9.5 billion USD mark.
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