While many food producers are struggling to find markets, some companies have found success in exporting byproducts.
Workers processing basa fish at QVD Aquaculture company. Photo by Ha Noi Moi
Nguyen Van Dao, CEO of Go Dang Company in Tien Giang province, said they invested VND50 billion (USD2.4 million) in a second production line in Ben Tre province for fish oil and fish flour. "Consumption of these goods is stable in Asian markets such as South Korea, Singapore and China. In three years we expect to recoup our investment and make up for the losses from the dwindling pangasius fish market." Dao said.
The high demand for fish oil and flour also brought back millions of USD to Thuan An Production Trading and Service Company in An Giang province, accounting for 70% of its total revenue.
Nguyen Van Phan, CEO of Hiep Thanh Group in Can Tho province, also shared that they have successfully started to produce biodiesel from basa fish oil and other fish parts. The biodiesel will not be exported, however, but used as fuel to supply Hiep Thanh Group's own factories as a cost cutting measure.
Meanwhile, Truong Thanh Phong, President of Vietnam Food Association, pointed out that Vietnam also has several rice bran oil factories for domestic and foreign demand, such as the Can Tho-based USD7 million joint-venture factory between Vietnam Vegetable Oils Industry Corporation and Singaporean Siteki Investments.
According to Nguyen Van Dao, CEO of Go Dang Company, many small-sized factories have been established recently without proper expertise in their fields. He added that this could have an adverse effect on the reputation of Vietnamese products.
As a result, a number of firms asked the government for tighter management to keep up high standards. The Vietnam Association of Seafood Exporters and Producers (VASEP) affirmed that high-tech equipment, competent staff and adequate financing prerequisites to a quality factory. In addition, they stated, the government must provide suitable policies to support the industry.
In early August, VASEP will partner with Vietnam Cleaner Production Centre, Hanoi University of Science and Technology, WWF-Austria and other stakeholders to start the “Establishing a Sustainable Pangasius Supply Chain in Vietnam” project which will cost EUR2.37 million. It is hoped that thousands of Vietnamese firms will benefit from the project.
