The situation of aquatic and marine product export in Thanh Hoa province in the international integration period
Hong Duc University Journal of Science, E.4, Vol.9, P (46 - 53), 2017
THE SITUATION OF AQUATIC AND MARINE PRODUCT EXPORT IN
THANH HOA PROVINCE IN THE INTERNATIONAL INTEGRATION
PERIOD
Le Thi Thu Ha1, Dinh Thi Thu Thuy
Received: 12 September 2016 / Accepted: 10 October 2017 / Published: November 2017
©Hong Duc University (HDU) and Hong Duc University Journal of Science
Abstract: In the international integration period, Thanh Hoa province determines to develop
marine economy - including aquatic and marine products export development. It is one of the
key missions of the province. There are many existing issues relating to aquatic and marine
products export that need to be solved. The objective of this study is to evaluate the reality of
quality and brand of aquatic and marine products; and, to recommend effective solutions for
these issues. The study has three parts: Introduction is in part one; second part is the main
part of this research - Research Content, includes the evaluation of the quality and brand of
fishery products and the recommended solutions are introduced in part three.
Keywords: Aquatic and marine products export, international integration period, quality and
brand, Thanh Hoa province.
1. Introduction
Aquatic and marine products export under integration direction is one of the very
important issues in developing agricultural and rural economy, particularly in coastal areas,
which contribute to the economic structure shift, creating jobs and reducing poverty for a
large number of people in Vietnam.
During the past years, aquatic and marine sector in Vietnam has gained important
achievements with quick and stable growth, becoming one of the key sectors in export,
bringing about considerable income for the country. At present, Vietnamese aquatic and
marine products have been present in over 164 countries, generating an export ratio of more
than 6.6 billion USD (According to a report on Vietnam Fisheries production in 2015 of
VASEP, Vietnam Association of Seafood Exporters and producers).
Thanh Hoa is the second largest province in Vietnam both in population and area.
Statistics shows that Thanh Hoa has the coast of 102kms with 6 coastal towns and districts
Le Thi Thu Ha
Faculty of Economic and Bussiness Administration, Hong Duc University
Dinh Thi Thu Thuy
Faculty of Economic and Bussiness Administration, Hong Duc University
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Hong Duc University Journal of Science, E.4, Vol.9, P (46 - 53), 2017
conditions for economic development in general and aquatic and marine product export
development in particular. Recently, Thanh Hoa has paid more attention to aquatic and marine
products export.
Although the aquatic and marine products sector has been concerned and invested in
recent years, new development needs particularly demands of integration into international
economy with competitive, quality and branded products has posed urgent issues to the
locality. In order to join the playground and integrate into international market and export,
Thanh Hoa aquatic and marine products should not only invest in fishing and processing
facilities and equipment but also have long-term strategies in branding products and
productions to satisfy requirements of technical barriers as well as demands of customers in
different countries.
2. Research Content
2.1. Reality of Thanh Hoa aquatic and marine products export in 2010 - 2015
The province has 76 enterprises specializing in processing, aquatic and marine products
export business with total capacity of about 279,870 tons of aquatic and marine products per
year. (Report on the implementation of the 2015 plan for Fisheries and Aquaculture
Development). Total export value in 2010 reached USD 47.8 million (reaching 106.4%
compared with the planning target of USD 45 million), 56 million in 2013, in 2015 it was
estimated at USD 75 million, mainly export quota.
The main products are shrimp, frozen squid, fried fish. Product has not much added
value. Raw materials for export processing is mainly products from fishing and brackish water
aquaculture. Raw materials in the province only meet 20-30% of the capacity of the plant, so
the raw materials are mainly purchased from other provinces such as Quang Nam, Quang
Ngai and Thua Thien Hue.
Table 1. Aquatic and marine products export turnover
Aquatic and
Aquatic and
Total aquatic
and marine
products
Total aquatic marine
marine
products
export
Percentage
compared
to the
and marine
products
export
products Percentage
export
turnover of
compared
to the
whole
country
(unit: %)
export
turnover of
Thanh Hoa
province
(unit: Million
USD)
Year
Year
turnover of
the country
(unit: Million
USD)
whole
country
(unit: %)
turnover of Thanh Hoa
the country province
(unit: Million
USD)
(unit:
Million
USD)
2000
2001
1479
1778
14.952
13.808
1.01
0.78
2008
2009
4509
4251
37.65
45.85
0.83
1.08
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Hong Duc University Journal of Science, E.4, Vol.9, P (46 - 53), 2017
2002
2003
2004
2005
2006
2007
2023
2200
2408
2733
3358
3764
16.843
17.5
0.83
0.80
0.89
0.86
0.87
0.81
2010
2011
2012
2013
2014
2015
5202
6110
6090
6712
7836
6660
47.89
43.216
58.1
55.6
69
0.92
0.71
0.95
0.83
0.88
1.126
21.472
23.542
29.12
30.65
75
(Source: - Statistical Yearbook of Thanh Hoa province2014 year)
- The ThanhHoa Department of Agriculture and Rural Development
- The General Department of Customs and VASEP
* Export market:
Aquatic and marine production is increasing, aquatic and marine products export also
brings about good results - aquatic and marine products export turnover increased
significantly over the years.
Table 1 shows that the value of export turnover in 2000 reached USD 14,952 million,
accounting for 1.01% compared to the whole country, by 2005 export reached USD 23,542
million, but it reduced compared to the country and just accounting for 0.86%; reaching USD
47.89 million in 2010 doubled compared to the year 2000, but the percentage compared to the
whole country decreased 0.09%.
In 2011, the value of aquatic and marine products export increased but export turnover
decreased more than compared to the year 2010. The reason is due to the inputs for production
on the rise: electricity price increased by 18%, gasoline price soared, the currency market has
large fluctuation in interest rates (interest rate is 15%/year, external loans is 20%), which
makes great disadvantage for aquatic and marine products processing businesses as well as
farmers and fishing in raising funds to invest in production. Besides, ThanhHoa as well as the
whole country has trouble in export market - the modern technical barriers are being applied
to aquatic and marine products of Vietnam.
However, by 2012, Thanh Hoa province has focused on upgrading and expanding a
number of aquatic and marine products processing establishments for export, encourage
private processing facilities to develop; some fisheries infrastructure such as Lach Bach
fishing port, Lach Hoi etc,. invested to upgrade and meet the development requirement of
fishing. Fishing capacity is increasing after the province has invested in a lot of resources to
develop. Thus the value of export turnover reached USD 58.1 million, accounting for 0.95%
of the whole country, up to 0.24% over 2011.
In the year 2013, the value of export turnover reached USD 55.6 million, a decrease of
0.12% compared to the year 2012, accounting for 0.83% of the whole country. The epidemics,
storms, fuel prices and tight credit cause difficulties for aquatic and marine products
processing enterprises for export.
By 2014, the value of export turnover reached USD 69 billion, an increase of 0.05%
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Hong Duc University Journal of Science, E.4, Vol.9, P (46 - 53), 2017
compared to the year 2013, accounting for 0.88% of the whole country. In 2014, the aquatic
and marine products sector of Thanh Hoa continues to face many difficulties and challenge of
weather, disease, market and volatility in Bien Dong. But overall the sector has more
advantages than the year 2013, because: flood situation occurred less, the domestic economy
has been recovering, purchasing power rose in the country, many agricultural products in the
market are well consumed.
In 2015, the value of national export turnover reached USD 6.660 million, of which
export value of Thanh Hoa is USD 75 million, accounting for 1.126%. If comparing to other
export commodities of the province, the aquatic and marine products for years remained at
second position after the light industrial goods and handicraft, contributing greatly to the
province's GDP growth. In the world, Thanh Hoa aquatic and marine products are
increasingly selected by consumers thereby aquatic and marine product export market is
expanded, the value of exports has increased.
2.2. The quality assurance in recent years
Requirement of major markets on standards of quality and food safety of marine and
aquatic products is very high. The major markets (EU and the US) just import the products of
Vietnam marine and aquatic products processing enterprises that have been issued certificate
of standards of quality and hygiene. The stable quality assurance is one of the difficult
problems for Vietnam marine and aquatic products processing enterprises today. Due to
difficulties in purchasing raw material meeting quality standards as prescribed by Europe,
although a lot of ponds, cages are in the harvest, creating instable quality of aquatic and
marine products for export and facing problems on the international market.
So far, some shipments detected not to ensure food safety and hygiene have been
returned, but Thanh Hoa has not had any marine and aquatic products belonging to that
shipment. Most products of Thanh Hoa marine and aquatic processing enterprises have not
met the standards of foreign markets, especially on the major markets. Currently, quota export
of Thanh Hoa marine and aquatic products mainly concentrates in two businesses (Thanh Hoa
Marine Products Import-Export Joint Stock Company and Long Hai Trading Transportation
and Seafood Processing Joint Stock Company) with the main products: surimi, steamed clam,
other seafood to market of Thailand, Korea, China, Japan and the EU countries.
2.3. Issues in Brand Building
For Thanh Hoa processed aquatic and marine products, most aquatic and marine
product exports do not have their own brands, they are mainly consumed in foreign markets
under the brands of the importers or distributors, supermarkets. This affects export prices,
while the other competitors have been successful in building and promoting their brands.
Current export method of Thanh Hoa province is mainly by informal way with simple
purchases and procedures between enterprises, vessel owners with countries (particularly
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Hong Duc University Journal of Science, E.4, Vol.9, P (46 - 53), 2017
China). Preserving techniques and technologies of the province are still poor, so long day
offshore fishing boats usually sell to purchasers of other countries offshore. Thanh Hoa's
majority of aquatic and marine enterprises are of small scale and they cannot meet the
demands of formal orders in big quantity.
Values of quota and non-quota exports of Thanh Hoa aquatic and marine products are
showed in Figure 1. In 2000 total export value was USD 14.952 million, including non-quota
export value of USD 9.006 million, accounting for 60.23%, in 2005, non-quota export value
of reached 70.83% with an increase of more than 10%, in 2020 this ratio was increased to
90.46% and in 2015 it was 80.05%.
Values of quota and non-quota exports ofThanhHoa aquaticand
marine products yearperiod from 2000-2015
Unit: millionUSD
Quota Non-Quota
80
70
24.4
60
22.72
50
40
30
20
10
0
11.2
19.4
38.7
4.571
1.226
41.99
6.822
3.642
5.576
50.6
8.829
46.28
44.77
43.319
6.867
39.028
5.98
34.008
8.599
7.964
25.074
20.228
16.675
5.946
9.006
8.802
5.006
15.492
8.879 8.901
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Figure 1. Values of quota and non-quota exports of Thanh Hoa aquatic and marine products
3. Some suggestions for developing aquatic and marine products
3.1. Solutions to improve product competitiveness
Thanh Hoa aquatic and marine products are determined for consumption in other
provinces and for export. However, trend of regional and international economic integration
generates increasingly fierce competition especially for imported goods. To overcome
difficulties, stimulate production and development, market solutions should focus on the
following issues:
Investing in improving market forecast capacity, especially medium and long-term
forecasts of quantity, quality and type of goods that the market needs; the situation of supply-
demand and price of each type of goods. Based on market information making investment and
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Hong Duc University Journal of Science, E.4, Vol.9, P (46 - 53), 2017
production plans, and then chooses form and timing of market penetration for the highest
effectiveness.
Stepping up trade promotion, market forecasts, encouraging and creating favorable
conditions for businesses, scientists inside and outside the province in signing production and
consumption contracts to expand and develop domestic market of aquatic and marine products
and for export. They conduct the program “Link 4 sectors” to promote aquatic and marine
products via contracts.
Investing in the construction of aquatic and marine product processing facilities to
generate stable output markets, add value to aquatic and marine product.
Investing in development of market system, quickly forming exchange venues in
rural areas for consumption of aquatic and marine products. In the immediate run,
developing towns, townships and centers of “industrial - rural services”, wholesale
markets in association with main traffic routes and rural markets for consumption of
aquatic and marine products to farmers, they encourage all economic sectors to
participate. Guiding and creating conditions for cooperatives to ensure and cover outputs
for aquatic and marine products.
3.2. Solutions to ensure quality standards in accordance with international market
requirements
Solutions to improve quality of aquatic and marine products as required by international
markets should be carried out from the phase of breeding, caring, exploitation, preservation
and processing. It is necessary to boost fishing extension programs, investments of province
for seed research and advanced processes to ensure food safety and hygiene. At the same time,
it is required to support and encourage enterprises to build and manage product quality
according to ISO, HACCP, etc.
Organizing regular activities of education and communication fishermen, farms,
businesses and economic entities engaged in aquaculture, exploitation and processing of
aquatic and marine products of the province by multiple channels such as radio, seminars,
training, etc. on requirements of aquaculture, exploitation and processing of aquatic and
marine products to ensure quality and food safety in accordance with requirements of
international economic integration, the business knowledge in production, processing,
consumption, etc.
Among the factors that affect the quality of aquatic and marine products for export,
seed is considered as an important factor. To boost the efficiency of seeds, it is needed to
make more investment in research and application of seed with high yield, quality and
economic value and suitable with each locality and the tastes of consumers.
3.3. Brand development solutions
In the current context of integration, competition does not only limit at quantitative
criteria such as price, quality, but also open to the intangible values such as reputation, image,
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Hong Duc University Journal of Science, E.4, Vol.9, P (46 - 53), 2017
etc. of products. In recent years, Thanh Hoa aquatic and marine products have not created
rightful position in domestic and international markets due to lack of its own brand. Therefore,
building and developing brands for Thanh Hoa aquatic and marine products is very necessary
and required from enterprises and the State.
For businesses
They should promote activities of establishing and advertising brands of aquatic and
marine products in domestic and international markets. The branding for aquatic and marine
products requires a coherent strategy from selection of seeds, farming, fishing, preservation
and processing. When brands are available, it is important to pay attention to protection and
preservation, promotion of brands a sustainable way. It is required to register protection of
trademarks, product labels, brand at home and abroad so that consumers will be initially
familiar with labels, brands and quality of aquatic and marine products of each enterprise
and each locality. The key issue to ensure sustainable preservation and development of
brands is to continuously improve product quality and developing sales network. At the
same time, constantly investing in research and development creates new products to meet
consumer demands.
For the province and the State
It is necessary to facilitate policies in management, support and create favorable
conditions for enterprises to invest in building and developing brands. At the same time, it is
also important to simplify legal procedures to create favorable conditions for enterprises to
register trademark protection most quickly. Supporting enterprises in training, provision of
information and advising enterprises on registering products trademark, commercial names,
geographical guidelines, names and origin of goods in land and abroad. Preventing and
protecting trademarks against acts of infringement, counterfeiting, imitation, infringement of
intellectual property, etc. the authorities should speed up issuing detailed regulations guiding
the implementation of the Law.
4. Conclusion
The issues in quality and brand of aquatic and marine products of Thanh Hoa province
are analyzed. They obstruct the international economic integration of Thanh Hoa, especially
when Vietnam was an official member of the WTO in 2007 - when low-cost imports extended
to all goods. The Trans-Pacific Partnership (TPP) was signed, it means the challenge for
Thanh Hoa’s fishery products. Looking for the solutions for developing Thanh Hoa aquatic
and marine products export are important. Business enterprises must have strategy to build up
the brand, improve product competitiveness, ensure quality standards in accordance with
international market requirements, etc. It is needed to implement such solutions
synchronously since they have close relations and support each other.
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Hong Duc University Journal of Science, E.4, Vol.9, P (46 - 53), 2017
References
[1] Thanh Hoa Department of Agriculture and Rural Development (2014), Report on
overall agricultural development planning of Thanh Hoa province to 2025, page 85.
[2] Ta Kim Sen (2013), Thanh Hoa aquatic and marine product exports-situation and
solutions, master’s thesis, page 46.
[3] Aquatic and marine trade magazine (2006), Development experiences of Thai
shrimp, page 34.
[4] Vietnam Institute of Fisheries Economics and Planning, Planning of developing aquatic
and marine culture in the Mekong delta until 2015, orientation to 2020 (4/2009), page 38.
[5] Vietnam Institute of Fisheries Economics and Planning, Planning of developing aquatic
and marine culture in the Mekong delta until 2015, orientation to 2020 (4/2009), page 50.
[6] Statistical Yearbook of Thanh Hoa province 2014.
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