Long-term vision is needed to pave the way for the shrimp industry to develop.

Article and photos: HOANG NHA

Mr. Vo Van Phuc, General Director of Vietnam Clean Seafood Joint Stock Company, once commented: “The development of the shrimp industry in recent years is very good, very impressive, but also very paradoxical. The paradox here is that the development of the shrimp industry is not based on farming but on processing level. This poses a huge risk, and in the long run, if not overcome, the shrimp industry will face many difficulties, even losing its position in the market.”

Sao Ta is one of the pioneering enterprises in building a farming area with a total area of over 500 hectares to proactively price and prove the origin of farmed shrimp.

Mr. Phuc's above comment has become a reality, when the shrimp industry is facing many difficulties from global inflation reducing purchasing power and especially competition with cheap shrimp from Ecuador and India. That is also the reason why the opinions of shrimp industry enterprises at the General Meeting of Members and the 25th Anniversary of the Establishment of the Vietnam Association of Seafood Exporters and Producers (VASEP), taking place on June 12, 2023, in Ho Chi Minh City, all had the same proposal, VASEP needs to have a longer-term vision to pave the way for the shrimp industry to develop, and first of all, it is necessary to pay attention to the entire value chain, especially the farming sector to be able to reduce costs, stabilize quality, and maintain the competitive position of the shrimp industry.

Mr. Do Ngoc Tai, Vice President of VASEP, Chairman of VASEP Shrimp Committee, Director of Tai Kim Anh Seafood Processing Joint Stock Company, said that in terms of long-term strategy, aquaculture is still the focus, the root of the problem. We must find a way to have a smooth connection and coordination between the parties involved in the chain, from companies producing good quality seeds, quality feed at reasonable prices, suppliers of aquaculture products... to increase the rate of successful shrimp farming and reduce costs to maintain and enhance the competitiveness of the shrimp industry in the coming time. Mr. Tai wondered: "With the situation of low shrimp prices since the beginning of the year, most farmers have gone from breaking even to losing money, many farmers have suspended their ponds, and processing factories will lack raw materials at the peak of the third and fourth quarters of 2023, leading to the risk of losses and a decline in export turnover for the whole industry.

Sharing the same concern for the shrimp industry, Mr. Tran Thien Hai, former Chairman of VASEP, Chairman of the Board of Directors of Minh Hai Seafood Joint Stock Company, said that Vietnam's previous advantages were technology, high processing skills, and good market performance... now the surrounding countries and competitors have all done it, but our weakness and also the strength of our competitors is the farming sector, which we have not yet overcome. Therefore, according to Mr. Hai, in the current value chain, we should put the role of farmers at the center to work together to build and arrange related issues to support farmers. Mr. Hai proposed: "When we clearly identify the role of farmers as the center in the value chain, we can work together to build and arrange related issues, such as how to develop farming, what area, what policies or mechanisms are needed from the state to support farmers...".

In the context of the Vietnamese shrimp industry having to jump into the race for quality and price, both businesses and farmers will face many difficulties, so according to Mr. Tran Van Pham, Chairman of the Board of Directors of Soc Trang Seafood Joint Stock Company (Stapimex), VASEP needs to consider how to increase its strength, or have a common voice with the party in charge of the farming sector, to be able to have a voice that affects the shrimp farming industry. VASEP needs to be the leader to gather individual voices and, based on that, research and systematize to come up with long-term, clear, and strong solutions to solve these problems. Mr. Pham emphasized: "In the long term, if we want to beat India and Ecuador, we need to focus on the farming industry from now on with projects or strategies to reduce costs and stabilize quality". According to Mr. Ho Quoc Luc, Chairman of the Board of Directors of Sao Ta Food Joint Stock Company, the shrimp industry only has one way: to focus on reducing the cost of farmed shrimp and making efforts to create new products to attract consumers. At the same time, we should pay attention to implementing requirements according to consumer trends, focusing on sustainable development criteria and the popular one at the moment is implementing the ESG criteria (environment - society - governance). Only then can we hope that our shrimp businesses can convince high-end distribution systems to get large and long-term orders.

Regarding the improvement of the cost and quality of farmed shrimp, according to Mr. Phuc, it is time for the shrimp industry to have a revolution in the farming sector, with shrimp business owners at the forefront. Mr. Phuc shared: “It is these people who have enough resources in terms of human resources, finance and science and technology to be able to make a revolution to reduce costs and increase productivity. Therefore, in the coming time, businesses need to change their thinking to make strong investments in farming areas. This is the premise to solve the challenge of raw material costs and prove to buyers that Vietnamese businesses are doing business honestly and seriously, with certified farming areas, with traceability of origin and source”. In addition to the efforts of the shrimp industry, according to Mr. Phuc, the role of the State in infrastructure planning (transportation, irrigation, electricity, etc.), land policies, as well as policies to support farmers to avoid the decline of the farming profession.

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