Recommendations for Vietnamese businesses in the face of radioactive shrimp contamination in Indonesia

The Vietnam Association of Seafood Exporters and Producers (VASEP) recommends that Vietnamese shrimp enterprises need to proactively turn crisis into opportunity.

With many importers in the US temporarily suspending orders for Indonesian shrimp due to radioactive contamination and looking for safer alternative sources, Vietnamese shrimp is expected to regain market share in this market.

The sudden drop in supply has caused a short-term shortage in the US market, while the price of raw shrimp in Indonesia has dropped sharply because businesses cannot consume their products. Therefore, countries with processing capacity such as India, Ecuador and Vietnam, with full certification and quality control systems, will be alternative options.

Faced with this development, the Vietnam Association of Seafood Exporters and Producers (VASEP) recommends that Vietnamese shrimp enterprises should proactively turn the crisis into an opportunity in the following directions:

First, testing and transparency. Proactive testing needs to be implemented at the supply chain level – especially in farming areas, cold storage and processing plants. Having internationally recognized testing records in place will help businesses overcome new technical barriers.

Second, promote the export of value-added products. When safety confidence is strengthened, deeply processed products such as cooked shrimp, breaded shrimp, flavored shrimp, etc. will be an attractive segment with higher profit margins, and at the same time, less affected by strict inspection regulations applied to fresh raw materials.

Next, diversify export markets. While the US is currently the most potential market, parallel expansion to the EU, Japan, Canada and China will help Vietnamese businesses avoid dependence and reduce risks when a market tightens regulations.

Source: VTV