Seafood enterprises have more opportunities to expand market share in China

Seafood exports are expected to be brighter in the second quarter.

More than 800 enterprises are eligible to export

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the CIFER (China Import Food Enterprise Registration) system under the General Department of Customs of China has officially approved and added 23 Vietnamese seafood processing facilities that are allowed to export to China. Thus, up to now, the CIFER system has recognized 802 Vietnamese enterprises eligible to export seafood to this market. The fact that more seafood enterprises are allowed to export seafood to China when this country has just opened its economy promises to bring seafood export turnover to a market of more than one billion people to prosper shortly.

China is the main export market of many Vietnamese seafood products; pangasius exported to China accounts for 30% of the total export turnover. In addition, this country is also in the TOP 5 markets that import a lot of Vietnam's shrimp. According to VASEP, despite being affected by the "Zero-Covid" policy, in 2022, Vietnam's seafood exports to China reached 477,000 tons, with a turnover of nearly US$1.6 billion, up 33% in volume and 61% in value compared to 2021. This showed that China's seafood demand was increasing, and businesses needed to focus on this market shortly. Therefore, China has considered a potential market in the context of the world economy entering a recession and the decline in consumption in some traditional markets such as the EU and the US.

To facilitate businesses, in 2023, the Ministry of Agriculture and Rural Development will continuously handle problems related to the registration of enterprises exporting to China on the CIFER system, add products to the List of products allowed to be exported to China, and coordinate with competent Chinese authorities to handle cases of warned seafood shipments in the import market.

Take advantage of near market

According to Le Hang, Communications Director of VASEP, in the context of rising global inflation, China will be the most potential destination for Vietnamese seafood enterprises in 2023 thanks to its great demand, close geographical location, and lower logistics costs and risks than other markets. Of products exported to China, Hang said that pangasius would have an advantage over shrimp because businesses have existing trade relations with Chinese partners, and Vietnamese pangasius could fill the gap of white fish from Russia in the context of complicated political conflicts. As for the shrimp segment, China has imported a large amount, but it is difficult for Vietnamese shrimp to compete in China in both the high-end and raw materials segments. Therefore, enterprises mainly export value-added products to other potential markets such as Japan and the EU.

Truong Dinh Hoe, General Secretary of VASEP, said that China's market-opening gave great hope for a recovery in demand in this market and other markets worldwide when tourism and trade are smooth. This market's recovery will also have clear results from the second quarter of 2023. Therefore, enterprises must focus on balancing declining exports in other markets.

According to Hoe, in the future, it is necessary to have special measures to do marketing to the Chinese market more effectively, setting up a direct selling agency for Vietnamese people. However, we need to consider which location is suitable for implementation. Additionally, businesses need to understand the policies of each locality to have a strategy suitable for each product. Especially for shrimp products, it is necessary to calculate more carefully because of the large competition from Ecuador and India.

Nguyen Thi Anh, General Director of Song Tien Seafood Company, said that the cost of new orders has decreased significantly, but the company was making orders with close markets like China. Since January 8, 2023, China has lifted strict controls on imported goods such as testing, sterilization, and quarantine. This is expected to increase import demand and consumption of Chinese goods. As a result, Vietnam's seafood exports to China are expected to increase positively this year.