Binh Dinh: Fishery enterprises bustling about meeting orders

Flooded with orders

Cao Thi Kim Lan, Director of Binh Dinh Fishery Joint Stock Company (BIDIFISCO) said from May to September when the fourth wave of Covid-19 broke out in Binh Dinh province, more than 1,000 workers of BIDIFISCO's three processing factories were still working. Thanks to that, BIDIFICO was able to meet foreign orders this year.

"This year we set a export target of US$65 million. We reached US$ 50 million by the end of September.  Our three processing factories have implemented the "three-on-the spot" measure over the past five months with 1,000 workers staying at work.

All workers of the company have received the first dose of a Covid-19 vaccine which is convenient for production. It's three months ahead the Lunar New Year, we are striving to reach additional US$18-20 million.  Despite facing challenging times this year we will try our best to surpass the goal set," Cao Thi Kim Lan said.

Also according to Lan tuna is the main export product of BIDIFISCO accounting for 80% of the company's annual total export volume of which 50% were exported to the U.S. market, 40% were exported to Europe and the rest was shipped to the Middle East.

Global vaccination coverage is now at high level, the global economy has been gradually rebounding which is expected to drive up demand for seafood. In addition, as the Western countries including the U.S and European nations are going to celebrate Christmas and New Year seafood demand is predicted to rise sharply in the coming months. In particular, the U.S market will have the highest consumption for the company's tuna.

"We have to meet a lot of orders from now until the year end. We must work hard to fulfill the orders," said Cao Thi Kim Lan.

The European Union Vietnam Free Trade Agreement (EVFTA) took effect on August 1, paving the way for boosting Vietnam's exports to Europe including seafood.

According Cao Thi Kim Lan - BIDIFISCO's director, the EVFTA has brought great opportunity to the Vietnamese enterprises. With the tax reduction roadmap, the tariffs on seafood to the EU will be gradually reduced to 0% which has helped Binh Dinh seafood enterprises improve their competitive advantages in the global market.

""Zero tariff" have helped us compete against low-price rivals. Our export volume to Europe has increased significantly, especially for high-end products. In the past, these products were subject to high tax rates so we did not dare to export them to Europe because we were afraid that we could not compete with other competitors".

With the EVFTA coming into effect the opportunity for exporting to Europe has been open because when tariffs are cut to zero we can improve our competiveness, thereby our operations will thrive," Cao Thi Kim Lan added.

Overcoming difficulties

Quy Nhon Frozen Seafoods Joint Stock Company (Seaprodex F16) took "three-on-spot" and one route -two destinations" measures to maintain its operations.

Seaprodex F16 is the company specializing in exporting shrimp to South Korea, Philippines and Europe at annual average volume of 5,000 tons. Over the past five months the coronavirus pandemic broke out the company remained 2,000 workers staying at work to ensure foreign orders being fulfilled on time.

"For workers in non-social distancing zones we organized production by adopting "one route -two destinations" measures. For workers in social distancing zones we chose "three-on-spot "solution. Accordingly all workers would work, stay right in factories to both maintain operations and ensure the prevention and control of Covid-19. Most of the workers have lived in Quy Nhon City and they have received the first dose of Covid-19 vaccine, a favorable condition for us to maintaining operations," said Banh Quang Ha, Director of Seaprodex F16.

Seaprodex F16's most- exported product is white-leg shrimp while it's till four year before the tariff on the product can be reduced to 0% under tariff reduction roadmap in the EVFTA. This barrier will hamper the company's export growth.

"As soon as the EVFTA came into effective black tiger shrimp was entitled to a tax reduction of 0% immediately but white-leg shrimp have to wait five more years to be entitled to this tax incentive. Meanwhile we exports 1,000 tons of shrimp per year mainly white-leg shrimp as fishermen have shifted to raising white-leg shrimp stead of black tiger prawn. Because white-leg shrimp have not yet received "zero tariff "we will lose competiveness in European markets," Ha explained.

Despite the challenges during the pandemic, Seaprodex F16 has made great effort to overcome difficulties for more than a year now.

"From now until the end of the year 2021 we have a lot of orders to fulfill. The economic activities in Binh Dinh have gradually recovered from Covid-19. We will base on real-world situation to organize the production properly to reach target for this year," said Banh Quang Ha, Director of Seaprodex F16.

Diverting market for tuna exports

Europe used to be the largest tuna importer of Binh Dinh Fishery Joint Stock Company (BIDIFISCO). It is now changing as the U.S surpasses Europe to become the company's biggest tuna buyer.

According to BIDIFISCO's director -Cao Thi Kim Lan the company's annual export turnover reached approximately US$60 million of which US$50 million were from tuna exports.  European market previously accounted for 70% of the company's total export value followed by the U.S (20%) and other markets (10%). However the market share has recently changed as the U.S accounted for 50% of the company's tuna exports while  the exports to Europe have been reduced to 40%.

According to Tran Van Vinh, Deputy Director of Binh Dinh Fisheries Sub-Department the province's capture fisheries production was 208,732 tons in the first nine month of 2021, up 2.2% over the same period last year. Particularly tuna production in Binh Dinh reached 8,906 tons during the same period. Binh Dinh's tuna products were consumed on both domestic and international markets.

Tuna fishing season usually ends in the end of November. To ensure raw materials for processing and exporting, BIDIFISCO has actively bought and kept tuna in the frozen storage warehouse. Besides, seafood firms in Binh Dinh  have maintained close cooperation. They are always willing to share their available raw materials with each other.