China “Zero COVID” policy has ended and seafood export from Vietnam now have access to the market of the 1.4 billion people. China has lifted all of its pandemic prevention measures and opened its borders.
Le Ba Anh, Deputy Director of the Agro-Forestry-Fisheries Quality Management Department of the Ministry of Agriculture and Rural Development (MARD), said that MARD has been working with China on food safety control with aquatic goods since 2004. The two parties maintain the registration of seafood export businesses. Currently, China recognizes 802 Vietnamese seafood exporting businesses, and Vietnam has also recognized 780 Chinese seafood exporting businesses.
Anh says that China’s zero COVID policy made it hard for Vietnam to export high-value marine products, like crabs, lobsters, vannamei and black tiger shrimp. When China opens the market, the prices of goods will go up significantly.
China’s opening will make more restaurants available, which will increase demand for expensive seafood.
Additionally, China will eliminate the COVID-19 inspection procedures, which would make seafood exports more available.
Le Hang, director of communications for the Association of Seafood Exporters and Producers (VASEP), said that in 2023, China would be the most attractive market for Vietnamese seafood exporters due to solid demand, proximity, and lower logistical costs and risks compared to other destinations.
The COVID-19 epidemic will make it hard for Chinese raw material sources to meet demand when China opens, according to Hang.
Pangasius will be more profitable than shrimp in Vietnam’s export products, according to Hang. Vietnamese companies already have commercial ties with Chinese partners. In the case of political unrest, Vietnamese pangasius can make up for the shortage of imported white fish from its eastern EU neighbor.
Additionally, Chinese consumers prefer pangasius and other freshwater fish over tilapia, which allows Vietnamese companies to increase exports.
The VASEP estimates that Viet Nam exported fish worth $785 million in December 2022. That’s down 13% from the same time in 2021. However, the fish business reached $11 billion in 2022. That’s up about 24% compared to 2021. The consistent development in the year’s first ten months is to be credited for this increase.
Exports fell in December, but there was a 17% increase in shipments to mainland China and Hong Kong. This is positive news and shows that the markets are improving. In 2022, the seafood sector in Vietnam earned more than $1.8 billion from the Chinese and Hong Kong markets, an increase of 59%.
Exports to ASEAN countries maintained positive growth of 27% till December, with the market contributing $790 million to Vietnam’s seafood industry for the whole of 2022.
Exports to the US fell the most in December, with a 40% decrease. Nevertheless, exports increased by 5% in 2022 to $2.1 billion. Additionally, exports to the EU fell 32% in December, bringing the overall export value to the market, close to $1.3 billion, an increase of 20% from 2021.
Vietnam‘s seafood export revenue is declining because of the global economic downturn and high inflation. Experts expect exports to improve in the year’s second half, but it will take a long time for the market to recover. As a result, Vietnam’s seafood export revenue may fall and might be less than $10 billion in 2023.
Tariq Iqbal
Khulna, Bangladesh
