According to Working Group 970 of Vietnam’s Ministry of Agriculture and Rural Development, from now until the end of 2021, the global demand for Vietnamese seafood will increase. However, processing enterprises are in danger of losing opportunities due to the reduction of operating capacity, lack of workers, difficult purchasing activities of shrimp and pangasius, etc.
On August 9, according to the report of the Special Working Group of the Ministry of Agriculture and Rural Development in Ho Chi Minh City and the southern provinces (Working Group 970) on the situation of production, connection, supply and consumption of agricultural products in the provinces, The city implemented the distance according to Directive 16 of the Prime Minister, it is forecasted that the global demand for Vietnamese frozen products (mainly seafood) will increase in the period between September 2021 and January 2022 as countries Importing have winter from September 20 each year to mid-March of the following year. This is the time when tropical products in importing countries are not produced much (manufacturing is also more expensive than importing), so countries will increase import demand from tropical countries like Vietnam.
Accordingly, importing countries will increase the amount of goods purchased from now until the end of October 2021 to store goods for sale on the occasion of the New Year 2022 and world festivals taking place from the second week of November 2021. In addition, importers are also looking for long-term contracts to sign at fixed prices until next summer (June 2022).
However, currently, seafood production and processing in Vietnam’s southern region are facing many difficulties due to the impact of the epidemic as well as regulations on traffic control due to fear of the spread of the disease, leading to possibility of missing export opportunities.
According to the working group, in the southern provinces, there are 324 out of 449 seafood processing establishments that meet the requirement of “3 on the spot“, so they continue to operate, accounting for 72%. The rest did not meet the requirements, so they had to temporarily stop their operation, only 6/31 establishments in Tien Giang province met the conditions.
Due to the lack of workers or having to split production shifts, the total seafood processing capacity decreased by about 30-50%. Due to the fact that factories have to temporarily stop working, it is difficult for farming establishments to reach the harvest period. Currently, a number of seafood processing factories, typically Vinh Hoan Joint Stock Company (Dong Thap), are having to mobilize workers to harvest pangasius on farming areas in many provinces such as Dong Thap, An Giang. , Tien Giang but facing difficulties when traveling between provinces.
It is forecasted that the last months of 2021 will be the main harvest period for shrimp and pangasius. Therefore, the working group recommends that there should be a coordination mechanism among provinces and cities in the process of disease control to actively remove difficulties for businesses, especially for export processing factories.
Working group 970 of the Ministry of Agriculture and Rural Development suggested that Southern provinces and cities give priority to vaccination for forces in the supply chain: drivers, boats, transport barges, workers at factories, loading and unloading goods; arrangement at the port, goods inspection, sterilization, import and export logistics personnel of export companies have to deal with documents at many places such as ports, customs, C/O offices, quarantine, and easy travel conditions for these personnel during the quarantine period because this force is maintaining export activities for the whole country.
International needs to buy rice but Vietnam finds difficult to deliver
International customers have the need to import rice, but Vietnamese businesses cannot deliver, making rice difficult to consume and prices fall.
Western fruit jams: selling at any price
Rice prices are lower than the same period last year about VND500-600/kg. According to the Ministry of Industry and Trade, rice prices in the Mekong Delta in the week from August 2 to August 6 were stable at the beginning of the week; In the middle of the week, the price of rice dropped by VND 50-300/kg, then increased slightly at the end of the week.
Specifically, the price of IR50404 rice fluctuated between VND4,400/kg, down from VND900-1,300/kg compared to the same period last year. The price of OM9577 and OM9582 rice is in the range of VND5,600-5,800/kg, VND1,000/kg lower than the same period last year…
Speaking at an online meeting of the Ministry of Agriculture and Rural Development on the production and consumption of rice in the Mekong Delta on August 7, Mr. Le Thanh Tung, Deputy Director of the Department of Crop Production (Ministry of Agriculture and Rural Development) worried: Prices of rice and other agricultural products fell deeply, not because of supply and demand but because of serious disruptions in the supply chain. International customers still have a need to import Vietnamese rice, but businesses cannot deliver.
International needs to buy but Vietnam is difficult to deliver
Rice prices are falling because it is difficult to transport to other places for consumption (Vietnam News Agency)
Currently, the output of summer-autumn rice in 2021 will decrease by 20-30%; enterprises are not capable of implementing “3 on the spot”; Rice drying, mill, boat… can’t work due to a quick test.
Mr. Huynh Minh Tuan, Vice Chairman of Dong Thap Provincial People’s Committee, admitted that the disease caused many difficulties for rice production and consumption in the past time. Dong Thap applies the distance according to Directive 16, applies “3 on the spot” production, so there are only 49/239 rice milling enterprises in the area still operating. This situation greatly affects the consumption of agricultural products in general, including rice.
Regarding the situation of loading and unloading, transporting and circulating goods, the situation of broken rice supply chain takes place from the field, to the factory, to the port and to the ship to the customer. The domestic distribution channel is also difficult to deliver goods by land or water.
Specifically, farmers could not sell their products. The factory cannot buy goods. The factory finished production without or without boats and barges delivered to the port. Goods at the warehouse are not disinfected and inspected in a timely manner according to regulations. Goods delivered to the port lack or do not have to be loaded and delivered to the ship. Loading and unloading workers have to perform “3 on the spot” very difficult in the conditions on board.
“Tan Cang – Cat Lai has suspended the export rice packing service at the port from July 2021 and it is unclear when it can resume. The amount of containers stagnation at Cat Lai port is large because only 50% of the staff are left to work, “emphasized Mr. Le Thanh Tung.
Long-lasting personality because distance can be long
Minister of Agriculture and Rural Development Le Minh Hoan emphasized: “In the coming time, it is necessary to strengthen the responsibility of local authorities in rice production in the summer-autumn crop, and actively support businesses to overcome related difficulties.” .
International needs to buy rice but Vietnam is difficult to deliver
Congestion at Cai Lai port also makes exports difficult.
In order to remove difficulties and obstacles in rice production and consumption, leaders of the agricultural sector suggested giving priority to vaccination for forces in the supply chain such as drivers, boats, transport barges, workers, etc. Employees at factories, loading and unloading at ports, import and export logistics personnel of export companies have to deal with documents at many places such as ports, Customs, C/O offices, and quarantine, etc.
Besides, creating favorable conditions for the above personnel to travel during the period of separation because this force is maintaining exports to the whole country; tax support, fees for businesses during the epidemic. Currently, the costs of rapid testing and PCR, meals and accommodation costs for “3 on-site” employees are all borne by the enterprises.
Deputy Minister of Industry and Trade Do Thang Hai assessed that the current summer-autumn crop, the world’s rice consumption demand has been affected but not too much, countries still need it.
However, logistics issues from Vietnam to export markets are affected. Containers are lacking, transportation costs increase. Many businesses do not dare to sign contracts for fear of rising costs too much to meet the contract. However, a good signal in rice consumption in the coming time is that the Chinese market is in need of importing Vietnamese rice.
Leaders of the Ministry of Industry and Trade analyzed that rice production and processing factories are currently also being greatly affected by human and transportation problems, pushing up costs.
As for logistics issues in general, especially cargo congestion at Cat Lai port, Deputy Minister Do Thang Hai said that initially to remove difficulties at the port, but not in “one day or two.”
A representative of the Ministry of Industry and Trade expressed concern when “some localities do it too tightly“, traders could not go to buy rice, it was also difficult to transport from one province to another. When traders can’t buy it, it affects the price.
“For example, if Ho Chi Minh City ends the distance, maybe other provinces will still distance themselves, just to a certain extent. Localities must take long-term measures, not just calculate the distance of 15-20 days or 1 month,” Mr. Do Thang Hai emphasized and did not forget to note “the epidemic but still have to live with the epidemic long time to give up.”
Thoibao.de (Translated)
