Vietnamese businesses still not ready for IUU

The Vietnam Association of Seafood Exporters and Producers (VASEP) has warned that regulations on EU’s new IUU (illegal, unreported and unregulated fishing) law would be the biggest hindrance for Vietnamese seafood companies when they try to export products.

Under the IUU law, all seafood export consignments to the EU must clearly show the origin of the products, including the sea area where the fish are caught and the names of the fishing boats, or they will be refused entry.

According to Cong Thuong newspaper, the new regulation will be valid as of January 1, 2010. Meanwhile, a lot of Vietnamese businesses are unprepared.

According to VASEP, most processing and export companies are collecting fish materials from small merchants at fishing ports. They do not purchase materials directly from fishermen, therefore, it is very difficult for them to declare the origin of the fish.

Small merchants, meanwhile, collect fish from tens or even hundreds fishing boats, making it impossible to remember all the names of the ships. Some offshore ships even sell fish right on the sea to service ships.

Vietnam’s fishing industry remains very small and the State has not set up any strict regulations. Therefore, VASEP has cautioned that it will not be easy to follow the EU’s IUU.

A representative from Yueh Chyang Canned Food Company, a leading seafood exporter to the EU, said that it is worried about the new regulation, because the EU consumes 50 percent of its exports. Currently, the company collects fish from small merchants who in turn gather fish from small ships. This means that it is impossible to obtain a fishing certificate

A lot of businesses noted that they first heard about the new regulation two years ago, but they still cannot implement its requirements. Export companies clearly record where they purchase materials, but the problem is that they must get certification from local authorities.

The businesses predicted that they will face many difficulties in IUU application, because up to 60-70 percent of exporters to the EU are using materials caught in the wild.

While some businesses worry about the new regulation, others have remained calm.

Truong Thi Hoa, Deputy Head of the Business Division of Vinh Hoan Company, observed that she does not think that the IUU will hinder the company’s exports, though she still does not know the IUU well.

Currently, Vinh Hoan is focusing on exporting the products made from tra and basa raised from fish farms. Besides, Hoa offered, Vinh Hoan has always followed safety regulations.

Pham Tan Hoa from Afiex also said that their company is centering efforts on processing tra fish, not fish collected from fishing boats. Hoa believes that the new regulation will in no way affect the company’s operation. Afiex has exported 3,000 tons of tra fish in the first ten months of 2009, while it plans to bolster domestic market sales.

Local authorities also do not understand the IUU well. Ly Thi Xuan Yen from Soc Trang province’s Seafood Quality Control Agency, replied that they have not heard of IUU. Yen had to ask Cong Thuong reporters what the IUU meant and if it is difficult to follow.

In the latest news, the Ministry of Agriculture and Rural Development is planning to send a delegation to work directly with the EU and make a proposal to extend the deadline for IUU implementation to the end of June 2010.

VietNamNet/BCT

Tags: Vietnam business news, Vietnam Seafood