Danish Companies See Seafood Market Opportunities in Mekong Delta

In a new strategic plan, 32 new seafood processing plants are to be built in the Mekong Delta by 2010 to increase the production of Pangasius (Basa, Tra fish). At the moment, there are 36 plants with a yearly production of 304.000 tons in the area. Once the new plan has been implemented, Mekong Delta will be producing up to 534.000 tons Pangasius a year, an increase of 76 %.
The plan is expected to attract many foreign investors, suppliers of breeding technology, suppliers of fish processing equipment, and new buyers of Pangasuis to Vietnam in the near future. It is an interesting opportunity for Danish suppliers of equipment and technology as well as for consultants and trading companies to explore a potential market in Vietnam
It is estimated that the plan will generate an increase in revenues from both the export and domestic market. For the export market alone, the development will generate average annual revenue of US $ 600 million.
According to the plan, the 32 new plants will be placed in 13 different provinces in the Mekong Delta, especially along the Mekong Rivers, where the breeding will be intensified. More rice patties will be converted into areas for Pangasius breeding. This change will give greater benefits for the local farmers.
To support the plan the Government will reinforce the relations between the farmers and the processing factories in the area by providing subsidies in an attempt to stabilize the production and minimize risks when it comes to pricing and marketing.
Overall, the local governments in the Mekong Delta provinces are positive toward the plan, though there are still some issues regarding investment, capital, location, and facilities that need to be settled before the implementation of the plan will begin.

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