VASEP seeks more loans for seafood businesses

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VIETNAM, November 15 – HÀ NỘI — The Vietnamese Association of Seafood Exporters and Producers (VASEP) has requested capital support for seafood companies, which are expected to achieve a turnover this year of record export for 20 years.

In an official dispatch sent to Minister of Agriculture and Rural Development (MARD) Lê Minh Hoan last week, VASEP said that despite difficulties in 2022, seafood exports have recovered and developed considerably, reaching a turnover of 9.5 billion dollars at the end of October, up 34% compared to the same period last year.

It is expected to hit $10 billion by the end of November, a record milestone for Việt Nam’s seafood industry after more than 20 years of participating in the global market. By the end of the year, it should reach nearly $11 billion, up 25% from 2021.

However, VASEP also mentioned that seafood companies are facing several challenges which have a huge impact on their work, such as shrinking and shrinking commercial bank credit limits.

According to VASEP, from mid-2022 until now and especially at present, many commercial bank branches have sharply reduced credit to seafood companies, even though the credit limit of many companies does not increase. was only 60-80% of loans disbursed.

The association said many large companies with large capital requirements cannot afford to purchase aquatic products and materials for production. As a result, some have to operate in moderation, affecting the growth and export of the industry, adding that some companies had to halt the construction of their seafood production facilities.

VASEP also said that while loans were difficult to access for large companies, it was much more so for small, medium and micro-enterprises, as their conditions to meet banks’ capital disbursement requirements, especially preferential sources of capital, are even more difficult. .

During a meeting with the Prime Minister, Nguyễn Hoài Nam, vice-president of VASEP, declared that 279 members of the association, which contributed to more than 80% of the total turnover of exports of products from the sea ​​of ​​the country, were facing problems accessing loans.

Nam said, “If there is no money to repay their old loans to commercial banks, companies are not allowed to take out new loans.”

He said that with seafood production and export in 2022 having seen unexpectedly strong growth earlier in the year, it is difficult for companies to balance the increased demand for capital without adjusting sources of capital. bank credit.

Thus, VASEP proposed to the government and MARD to consider and have solutions to increase the level of credit for the industry in general.

In addition, he recommended that the State Bank of Việt Nam direct commercial banks to create conditions for seafood companies to continue accessing standard loans when seafood exports are on the rise. the path to recovery and growth now and in 2023.

At the same time, the government should take support measures to stabilize the prices of inputs for aquaculture, in particular the price of feed, aquaculture breeding stock and the price of energy for the farm, as well as adjust the US dollar exchange rate flexibly and appropriately. , and reduce domestic logistics costs, urged the association.

Also in the official dispatch, VASEP said that the current shortage of labor working in the factories is also a concern for the business community, which affects production schedules and delivery commitments and makes it difficult to capacity increase.

The association proposes to the government to provide a land fund to companies to build housing for workers and increase social welfare in the urban industrial park.

The association said it is necessary to have a legal framework for companies to use foreign labor depending on the situation in the industry.

According to media reports, the benefits created by free trade agreements (FTAs) have helped many local seafood companies turn challenges into opportunities. The sector is expected to account for 3% of the country’s total overseas shipments this year.

According to VASEP, Việt Nam is currently the world’s third largest exporter of fishery products, after China and Norway. With the results obtained, its seafood exports should hold a share of more than 7% of the world market. —VNS


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