The Vietnam Association of Seafood Exporters and Producers (VASEP) is seeking the government's help to get compensation from Formosa for its members.
VASEP has submitted a proposal to the government, the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade, asking for the intervention so that local seafood exporters and people in the four central provinces region harmed by the mass fish deaths receive compensation.
According to VASEP, the fish deaths have also seriously affected the prestige of many central seafood exporters
According to VASEP, the Formosa toxic incident in the four central provinces of Thua Thien-Hue, Quang Binh, Quang Tri and Ha Tinh, discouraged local fishermen from fishing which has resulted in the serious fish supply shortage for seafood processing plants. Some of the plants have even had to cut back or halt their operations.
There was a 60% on-year fall in purchased seafood in central seafood processing firms in the first eight months of this year.
By the middle of August, many farmers in the central region had not returned to fishing yet. It is forecasted that from to the end of the year, many seafood processing businesses are likely to suspend their operations because of supply shortages.
The fish deaths have also seriously affected the prestige of many central seafood exporters with a series of contracts cancelled by importers following concerns that the seafood products are contaminated with toxic chemicals.
The sluggish consumption of seafood products has also led to companies having massive frozen fish inventories, meanwhile, they have to pay high banking interest rates and fees for hiring cold storage.
VASEP has also called on the government to take measures to support affected people and companies, including seeking seafood import to meet the demand from local seafood processing companies.
Formosa Group admitted its responsibility for the massive fish deaths in the central region and pledged USD500 million in compensation.
Earlier, Government Office Minister Mai Tien Dung said that the Vietnamese government will prioritise the compensation for fishermen affected by the mass fish deaths in the four central coastal provinces. In addition, the government will assign ministries, agencies and localities to form compensation plans, including helping people to find new jobs and developing sustainable environmental treatment.
