Process for bettering Tra fish industry

Do you have any comments on Vietnam’s Tra industry after joining the World Trade Organisation (WTO)?

After joining the WTO (January 11, 2007), Vietnam has followed well both WTO and regional commitments. All Vietnam’s export supporting policies (being applied) are in line with the forms allowed to apply in developing countries. The forms mainly focus on activities to support trade promotion in the field. In general, all Tra fish farmed in Vietnam are managed in accordance with national standards of food safety and environmental protection and the  Hazard Analysis and Critical Control Point (HACCP) system. Half of the Tra fish farmed in Vietnam is controlled and certified in accordance with international standards (GlobalGAP, AquaGAP, BAP/GAA, ASC).

Vietnam has now nearly 70 businesses operating in processing Tra fish for export, 95 percent of the Tra fish output is exported to over 150 countries and territories across the country. The EU, the U.S., ASEAN, Canada, the Middle East, Japan are now the main importers of Vietnam’s Tra fish.

Vietnam has 6,000 ha of Tra fish farming area, generating an annually average yield of between 200 – 300 tonnes/ha. The area is projected to broaden by 2020.

According to the General Statistics Office, Vietnam exported only less than 2,000 tonnes of Tra fish in early 2000, 10 years later the figure climbed to nearly 700,000 tonnes. In 2013, Vietnam earned about 1.8 billion USD  from exporting Tra fish.

We can say that joining WTO has created both opportunities and challenges for this potential industry.

Vietnam has 6,000 ha of Tra fish farming area – Photo: Ngoc Trinh 

What opportunity will the establishment of the Tra fish auction and distribution center in the EU create for Vietnam’s Tra fish?

Recently, VASEP and the management board of the Port of Zeebrugge (Belgium) signed a memorandum of understanding to a distribution center of Vietnam’s Tra fish in the EU through the port. This is part of the cooperation agreement between the Belgian Government and Vietnam. With this agreement, VASEP desires to establish a distribution centre in the port to consolidate the export of Vietnam’s Tra fish to the EU. The establishment will act as a center to promote sales, marketing and build Vietnam’s Tra fish brand in the whole EU market.

It is necessary to establish a seafood distribution center and an auction in the Europe, because this is the main market for Vietnam’s Tra fish. While in Japan and America, Vietnam’s Tra fish industry meets with difficulties because of trade barriers and anti-dumping duties and anti-subsidy, in EU regulations on these are easier. In spite of economic difficulties in Eropean, fish consumption in the EU has recovered.

The Zeebrugge trading floor, which has Zeebrugge port as a cargo transhipment center of the whole continent, is one of  the large export farm product floors in the EU. Through the Port of Zeebrugge, fisheries can be imported by large vessels. After entering the port, within only 24 hours, Vietnam’s aquatic products are able to be present in more than 86 percent of the supermarkets in the EU.

Advantages of the Zeebrugge port have helped this floor attract almost all importers in the EU because of the great cost saving in storage and distribution of goods. (Zeebrugge is a deep-water port to receive goods for the EU market and the UK; on the other hand, located in the middle of the port of Le Havre (France) and the port of Hamburg (Germany), Zeebrugge is now a leading Belgian distributor of fisheries to the EU). As a result, Vietnam’s Tra fish businesses will have many advantages in trading and distributing products in the international market. All contracts will be signed publicly, transparently, creating long-lasting and stable association strength, while sellers will be provided information swiftly and accurately. Joining this supply chain, businesses can also reduce transport costs if they export a large quantity of products. For instance, in the past when three containers were exported at three ports, each container would cost 3,000 USD; now, gathering all the three at Zeebrugge, the cost will be reduced to only 2,000 USD in total. Therefore, export businesses can have more understanding about consumers’ demand, thus promting domestic manufacturing and Tra fish farmers will also get benefit. In addition, the “partnership establishment in doing business” is not only the goal but also a tradition of the Vietnamese.

The state managment agencies also gave more effective responses and producing directions to adjust supply – demand (space, yield). Vietnam’s Representative Office in the EU will work to investigate, provide timely information, to protect the rights and benefits of Vietnamese manufacturers, importers and exporters. There will also be one single Tra fish supply centre from Vietnam who will directly deal with importers at the port. Therefore, the situation of each individual business negotiating with partners will be dismissed to avoid dumping, unreasonably low price or unhealthy competition between businesses.

In 2014, Vietnam’s Tra fish export market remains positive – Photo: Duy Khuong 

Besides such advantages, what are challenges facing Vietnam’s Tra fish businesses joining this partnership?

The establishment of a Tra fish distribution center and auction in Zeebrugge has received much attention and support from the Tra fish export businesses in the country. However, to achieve the best result, Vietnamese businesses have to step up the connection between them and pay a certain fee to operate the representative office and, warehouses in the port. Otherwise, businesses need to be more active, and to sthengthen cooperation and involvement of related oganisations (such as the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, and the Ministry of Foreign Affairs…) in speeding up trade promotion, market development as well as application of science and technology and international standards to production activities. Besides a number of pioneering businesses applying and satisfying all requirements of importers, there are also 30 percent of small-scale Tra fish raisers in Vietnam limitedly applying the standards of hygiene and food safety in their production.

What do you think to be the solution for Vietnam’s Tra fish products to access international markets favorably and avoid risks in production and exports?

In 2014, Vietnam’s Tra fish export market remains positive as the fish sees an increasing demand for white-meat fish and Tra fish is a product that meets this demand because of its nutritional and economic qualities.

To take advantage of the opportunities and available potential, Vietnam needs to boost trade promotion, while seeking new markets with great potential such as China, ASEAN, Africa, North America and South America… and also maintaining its foodhold in old markets despite their higher demand. At the same time, it is necessary to pay attention to negotiating, providing transparent information. On the other hand, it also needs to review and make production and bussiness plan more appropriate as well as promote the application of technology and international standards in production and raise farmers’ awareness. Also, we need to expand and implement effectively the linkage chain (this is an inevitable trend to the target of building the country’s market economy).