Mekong Delta's chain of debt

Businesses in the Mekong Delta, are suffering due to a chain of debt, where one party cannot pay a supplier and then that supplier in turn cannot pay their supplier. This effect is hitting catfish farmers and food processors in the Mekong Delta province. In one district of the Can Tho Province, farmers have been left deserted, and farmer that had become rich from selling fish are seeking out buyers for their plot of land.

Mekong Delta

Duong Ngoc Minh, deputy chairman of the Vietnam Association of Seafood Exporters and Processors (VASEP), said seafood companies used to need only the fish buying contract to be eligible for bank loans. “But they are no longer able to do so under the current credit policy,” said Minh. “VASEP figures show that less than 10 percent of businesses have cleared their payments with farmers on time.” As many as 80 percent of the seafood processing plants have had to cut production, and some even had to shut down operations, confirmed Minh of VASEP. Read more ...

This blog is written by Martin Little, The Aquaculturists, published and supported by the International Aquafeed Magazine from Perendale Publishers. To get your copy of 'PPLAPP' click here.