Should Vietnam encourage seafood material import?

Many Vietnamese seafood exporters have recently voiced their concern about the shortage of seafood materials for domestic processing, and asked the Government to reduce the import tariff on seafood materials to zero percent in order to help domestic processors – however, many experts think that this may do more harm than good.

According to the General Department of Customs, in the last three years, Vietnam imported 140,000-150,000 tonnes of seafood of different kinds each year, 96 percent of which was frozen seafood destined for domestic processing.

However, seafood processing companies are saying that they have been facing a lot of difficulties in importing seafood materials. Under the current regulations, stipulated in the four documents promulgated by relevant ministries, those companies which need to import seafood materials, have to show to relevant agencies many kinds of documents, including health certificates. The requirement has created big difficulties for import companies, because not all exporters agree to provide health certificates to the consignments of exports to Vietnam. In cases where they agree to provide health certificates, Vietnamese enterprises will still have to pay rising expenses.

According to the Vietnam Association of Seafood Exporters and Producers VASEP, Vietnamese seafood companies now very badly need to import seafood materials for domestic production, because current domestic sources cannot provide enough seafood. Since the beginning of the year, domestic seafood factories have been operating with just 40-60 percent of the designed capacity due to the shortage of materials. VASEP has asked the Government to consider cutting the import tariff to zero percent, the tax levels which are being applied in many countries in the region. Besides, the association has also asked the Ministry of Agriculture and Rural Development and other relevant agencies to create the most favourable conditions for the seafood material import by easing administration procedures.

According to VASEP, with current processing capabilities, its member companies can ‘absorb’ the volume of imports worth one billion dollar a year.

However, VASEP’s proposal has raised debate. Agriculture experts have warned that if the tariff is reduced to zero, it will prompt seafood processors to focus on importing materials while ignoring domestic sources. Once seafood processors do not use domestic sources, they will not make investment in developing domestic material areas. If this were to occur, it would hinder the sustainable development of the fishing industry, and will spoil the plans on developing aquaculture areas.

Meanwhile, representatives of seafood companies have said that there is little need to worry that eliminating the import tariff would have a negative impact on the development of the aquaculture industry. He said that the Ministry of Agriculture and Rural Development will provide a list of products which are encouraged to be imported and which are not encouraged. For example, Vietnamese companies will not be encouraged to import tra fish, a product that Vietnam has advantages in farming. Vietnam will only import the products which cannot be produced domestically, or which domestic sources cannot provide enough of to satisfy demand.

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Tags: seafood material import, Vietnam Seafood, Vietnam seafood sector