Fishery sector reports severe losses

The Vietnam Association of Seafood Exporters and Producers reported that 35-50% of the orders from the EU and the US had been cancelled or postponed.

The Vietnam Association of Seafood Exporters and Producers (VASEP) reported that 35-50% of the orders from the EU and the US had been cancelled or postponed.

  

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There is a huge inventory piling up. The fishery sector started feeling the heavy impact of the Covid-19 outbreak since early March. Orders were cancelled or postponed by the customers or cancelled due to lack of materials.

Catfish exports to China, Vietnam's biggest customer, were nearly stopped in January. When March arrived, when the outbreak spread to the EU, customers from various countries halted trading as restaurants and hotels shut down. In mid-March, export firms also face problems with orders from the Middle East, Asia and South America.

At this point, most firms in Vietnam have been affected since demand from local food services has also slowed down and only retail orders remain. According to VASEP, the frozen warehouses are full to their capacity. Even with discounts of 25-30%, importers can hardly find customers.

Vietnamese firms are rescheduling and cutting wages to maintain business. The situation is worsening after many people are being quarantined in the Mekong Delta.

VASEP asked firms to keep calm and follow guidelines from the Ministry of Health.