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Friday, August 19, 2022

High inflation lets seafood firms down

The Saigon Times

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HCMC – High inflation facing many countries worldwide such as the United States, Japan and the European Union has weakened consumption, making life tougher for local seafood exporters.

Le Van Quang, chairman of Minh Phu Seafood Corp., Vietnam’s largest shrimp processor and exporter, said that shipping costs have dropped due to rising inflation. Despite this, local high fuel prices have pushed up production costs and material prices by up to 20%.

Sea shipping costs have fallen, but domestic logistics costs have been revised up, increasing the pressure on seafood enterprises.

As such, Vietnamese seafood products have got costlier than before, discouraging foreign consumers, Thanh Nien Online reported, citing Quang.

In the latest price adjustment, local fuel prices were revised down, but were considered insignificant as since the start of the year, the prices of oil and gasoline products have skyrocketed, said Nguyen Van Kich, chairman of Cafatex Fishery Corporation.

In spite of a decrease in fuel prices, no goods and items have seen their prices follow suit to fall.

In addition, soaring inflation in many countries have forced consumers to squeeze their wallets, slowing down seafood exports, the representative of Minh Phu Corp said, adding that Japanese yen and the euro are rapidly devaluing.

Despite no order cancellations, some of Minh Phu’s customers have negotiated with the firm to postpone the time of delivery. Meanwhile, Japanese importers have adjusted up the retail prices of goods by 20%, making consumption gloomier.

Besides, local shrimp processors are also facing a severe shortage of materials due to low output, driving up the prices of the item, while the tra fish export to China has been hindered because of the country’s tightened anti-Covid measures, said Kich from Cafatex.

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