Volatility Of Raw Materials

MEKSEA.COM –

VASEP suggested alternatives for restoring production and export, after the quarantine period “3 things at the factory”.

According to official letter No. 89/CV-VASEP from the government reporting the current COVID situation, all businesses must follow the principle of: Every company arranges for personnel to live and work in the same location, or even two locations.

However, only 30% of seafood businesses in the southern regions can guarantee “3 things at the factory” and can mobilize only 30-50 percent of manpower, implying that capacity is only 40-50 percent of what it was previously. According to data, the region’s overall output is just around 30-50 percent. Only 40-50 percent of resources are used in the aquatic – seafood business. At the same time, only 50% of materials, auxiliary materials, and packaging for manufacture were used.

While production was reduced, many orders were shelved or abandoned, and the expenses for firms to guarantee “3 things at the factory” rose, putting a lot of strain on them.

We can see that implementing “3 things at the factory” for businesses can only take 2-3 weeks for small organizations and 4-5 weeks for major enterprises.

Meanwhile, Vietnam’s seafood export results in the first 6 months of 2021 achieved very positive results when taking advantage of the increased consumption demand of other countries. Total exports were 4.12 billion USD, up 14.5% over the same period in 2020.

VASEP has some remarks and ideas based on the foregoing practical issues of seafood businesses, as well as the prospects for seafood production-export that Vietnam is facing:

In the short term, enterprises must adhere to requirements set forth by the government directive on the prevention of the Covid epidemic.

1. The best option is to vaccinate the staff at seafood
2. The factory’s personnel is subjected to testing Covid 3 times/month.
3. Support workers, difficult workers, employees who are laid off.
4. Business- support policies

By Jasmine (Business Team)

(Reference: www.vasep.com.vn)

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