Vietnamese seafood enterprises are on the rebound

The positive signals of seafood export markets, especially the US and EU, are bringing growth prospects to Vietnamese seafood enterprises. Vietnam's seafood exports are on the recovery path, reaching $3.27 billion in the first five months of 2021, up 14% over the same period last year.
Vietnamese seafood enterprises are on the rebound
Vietnamese seafood enterprises are on the rebound

Demand for shrimp and pangasius increased sharply

Shrimp products in May 2021 brought in 349 million USD, up 16% over the same period; accumulated in the first 5 months of the year reached 1.31 billion USD, up 12%. Similarly, pangasius brought in 148 million USD in May, up 39%, accumulated in 5 months reached 637 million USD, up 15%. Other marine commodities such as tuna, cephalopods, marine fish... also had high growth.

Vietnamese seafood has the opportunity to increase its market share in the US market when India is heavily affected by the Covid-19 epidemic and Chinese enterprises reduce exports due to the US-China trade war as well as control regulations of Covid epidemic.

The US market accounts for 21% of Vietnam's shrimp exports. The US fully opened 50 states from May 20, 2021 after a long time in order to prevent the Covid-19 epidemic, which is a factor that promotes imports, especially shrimp, which is inherently popular in this country.

Pangasius exports to the US are also on the rise, in the first 5 months of 2021, an increase of 57% compared to the same period last year, reaching 135 million USD. For tuna, the US is leading Vietnam's tuna import markets, accounting for 42%.

Besides the US market, businesses expect the EU to be the growth engine this year when the demand for shrimp and marine products increases in the context of the Covid-19 epidemic being gradually controlled.

In fact, EU importers are more interested in Vietnamese seafood suppliers with tariff advantages from the EU-Vietnam Free Trade Agreement and stable source of raw materials.

By the end of May 2021, Vietnam's seafood exports to the EU reached 389 million USD, up 18%; in which, shrimp accounted for nearly 199 million USD and increased 22% over the same period.

Seafood enterprises set growth plans

Minh Phu Seafood Corporation (MPC) - the biggest shrimp exporter of Vietnam,  expects this year's business plan with a revenue target of VND 15,774 billion, profit after tax of VND 1,092 billion, up 10% and 62% respectively compared to last year.

Mr. Le Van Quang, Chairman of MPC's Board of Directors, said that in 2021, the company will maintain the export markets of the US, EU, Japan and expand to new markets, develop the shrimp value chain under 5 models. main image: seed (determining more than 60% of the success of shrimp farming); high-tech industrial shrimp farming complex; extensive shrimp farming complex; organic mangrove shrimp farming complex; organic black tiger shrimp - rice farming complex. By 2045, MPC aims to capture 25% of the world shrimp market.

 Nam Viet Seafood Joint Stock Company (ANV), specializing in pangasius, sets its business plan in 2021 to reach VND 4,500 billion in revenue and VND 360 billion in profit after tax, up 30.8% and 80% respectively compared to with 2020. The company will boost exports to China and EU markets, and return to the US and Russia markets.

For the number 1 pangasius company in Vietnam - Vinh Hoan Joint Stock Company (VHC), the business plan in 2021 achieves a revenue of VND 8,600 billion, up 22%, but the profit target is VND 700 billion, down 3 % compared to 2020. Total revenue in the first 4 months of 2021 of the Company increased by 61% compared to the same period last year.

In which, pangasius products increased by 54%, by-products increased by 107%, health products increased by 78%, value-added products increased by 111%. The Company's export value grew in most markets: to China increased 246%, the US grew 130%, Europe up 3%, other regions added 12%.

In this year, VHC plans to invest 1,300 billion VND, of which 700 billion VND to build an animal feed factory, Vinh Hoan hatchery and a new farming area; 200 billion VND to renovate factories in Thanh Binh and Vinh Phuoc Foods; 400 billion are for other investments. 

ACB Securities Company said that the inventory of raw pangasius in Vietnam is decreasing, while the demand for fish in the world recovers, the price of raw pangasius may increase. However, the new cold storage in Vinh Phuoc will help VHC stockpile the necessary amount of raw materials, thereby minimizing the impact of the expected increase in raw material prices.

Seafood exporters are still facing challenges from high sea freight costs due to a shortage of containers, which hinders exports to the US and EU.

However, many seafood enterprises expect that consumption demand will continue to increase from now until the end of the year, and at the same time, container freight will gradually decrease, thereby boosting exports in the coming months.

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