Vietnam, one of the world’s leading shrimp exporters, has slammed recent claims made by Sustainability Incubator, a research firm specializing in seafood supply chains, regarding labour abuse in the country’s shrimp industry.
“The allegations in Sustainability Incubator’s report are unfounded, misleading and detrimental to the reputation of Vietnam’s shrimp exports,” the Vietnam Association of Seafood Exporters and Producers (Vasep) writes in its latest statement on the Sustainability Incubator report.
Vasep represents seafood exporters and producers in Vietnam and supports its members with the aim of strengthening the competitiveness of Vietnamese seafood products in the world market.
The 36-page report was conducted by teams in Vietnam and completed by Katrina Nakamura, principal of Sustainability Incubator, which is hosting the study on its website. The group did not identify the report’s researchers.
The role of Western supermarkets in giving farmers unfair prices for their produce, the report highlights, directly impacts the prevalence of unpaid labour, exploitation and human rights violations within the industry. The lack of responsibility shown by the Western retailers, is also criticized in the report, which accuses them of often making bold claims of ethical sourcing and certification.
Workers in the Vietnamese shrimp industry, the report claims, are vulnerable to widespread labour exploitation and low pay while the supermarket chains buying their produce for retail are enjoying significant profit margins.
“The report on shrimp is a classic example of not understanding the production system and problems in the industry,” contents a senior British fisheries scientist, who has been working in the Mekong region for decades and prefers to stay anonymous to protect his identity. “Did they look into issues about disease and costs of food driving the statistics? No. Did they look at ownership systems of seasonal production cycles and labour needs? No. And it goes on.
“While the farming systems are too intensive for their own good, the labour issues are an exaggeration based on my insights into the farming practices. This is another example of people who have not got a clue, interfering with rural life. Will they pay the salaries of the workers if the farming shuts down?”
Vasep underscores that its corporate members operate under Vietnamese laws and international standards for food safety, social responsibility and environment protection.
“That’s why Vietnamese seafood products have enjoyed increasing numbers of overseas buyers over the past years,” the association states. “At present, these products are shipped to more than 170 markets around the world. With US$9 billion to US$11 billion of annual seafood export value in recent years, Vietnam now ranks third worldwide [in the global industry] after China and Norway.”
The shrimp sector contributes around 40% to 45% annually to the performance of the Vietnamese seafood export industry. Government statistics figures show that shrimp from Vietnam is shipped to around 100 countries and territories. Among them, the five biggest markets are Europe, the US, Japan, China and South Korea, respectively.
Since its inception in the early 1990s, the shrimp industry in Vietnam has grown in both scale and technical management and competence in quality, traceability and the management of environment impacts throughout the entire supply chain, from hatcheries, feed mills, farms and processing plants to up-to-date cold storage facilities.
The fact that the country is such an important player in challenging markets like Europe, the US and Japan, Vasep points out, serves as clear evidence of adherence to its international standards.
Representatives of Vasep and the Sustainability Incubator, a Vasep executive tells The Asset, are scheduled to meet in Hanoi over the next few days for a discussion of the report.
