Bleak outlook forecast for seafood firms

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SaigonTimes English - 26 month(s) ago 5 readings

CAN THO – Some 20% of the seafood enterprises are forecast to go bust or face stagnant production this year for several reasons, said Nguyen Huu Dung, vice chairman of the Vietnam Association of Seafood Exporters and Producers (VASEP).

Bleak outlook forecast for seafood firms

By Trung Chanh - The Saigon Times Daily

CAN THO – Some 20% of the seafood enterprises are forecast to go bust or face stagnant production this year for several reasons, said Nguyen Huu Dung, vice chairman of the Vietnam Association of Seafood Exporters and Producers (VASEP).

Speaking at the seminar on application of enterprise resource planning in the seafood industry held in Can Tho on Monday, Dung said the number of bankrupted seafood companies had increased strongly since the year’s beginning, and would surge further in the coming time. Such a situation, described as unusual by the VASEP vice chairman, is caused by the objective factors such as policies and the market, not the enterprises themselves.

Material tra fish prices in the Mekong Delta have constantly dropped. High-quality fish is now sold at VND20,000-21,000 per kilo, and prices of the lower-quality ones fluctuate around VND19,000-19,500 a kilo.

Dung suggested the Government should adjust the way they drive the economy, seeking low-interest funds for enterprises and offering tax reduction and exemption. Above all, seafood enterprises must save themselves through restructuring.

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