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Seafood firms look to second quarter for exports to recover

Seafood firms look to second quarter for exports to recover Despite a downturn in the export of aquatic products in the first month of 2023, local exporters remain optimistic that the market will recover from the second quarter of this year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

The association reported that in January, total export value of aquatic products dropped 31% to about 600 million USD, with revenue generated from major markets also falling, by 56% in the US market, 55% in China, and 35% in the EU market.

According to VASEP, although in 2022, the country posted a record aquatic export value at 11 billion USD, the result mostly came from high growth in the first three quarters. The trend reversed in the fourth quarter of 2022, with strong decreases seen in all products as many foreign markets were hit by high inflation. 

Noting that seafood is an essential food item, Nguyen Thi Anh, Director of Song Tien Seafood Corporation predicted that from the end of the first quarter and the beginning of the second quarter of this year, orders will start to increase, particularly for affordable products. She advised exporters to further exploit markets with high growth in the year, including those in Asia and the Middle East to improve order numbers.

Experts asserted that there will be many risks in 2023 from the Russia-Ukraine conflict and the possible occurrence of new trade tensions, affecting the supply of seafood in major markets. The situation is likely to bring both challenges and opportunities for Vietnamese seafood, especially in the US, China and the EU.

Particularly, the reopening of China after a long period of applying their “Zero COVID” policy also brings great hope for demand recovery in the market and other markets in the world when tourism and trade activities become smoother.

VASEP General Secretary Truong Dinh Hoe said that businesses expect market demand will improve and their seafood export activities will inflate again from the second quarter of 2023. In an optimistic scenario, seafood exports in 2023 may fetch 10 billion USD, he stated.

He advised local firms to ensure their financial capacity to maintain stable production and materials to meet the demand at any time, while adjusting their business development strategy to better meet requirements, legal regulations and standards of markets./.