Many enterprises export millions of USD of seafood

Processing seafood for export at Nam Viet Company. Photo: provided by the company.

After easing social distancing according to the Government’s Resolution 128, seafood exports quickly recovered and increased sharply in the last quarter of the year, bringing the whole year’s export result to a record of US$8.9 billion, up nearly 6% year on year.

According to Ms. Le Hang, Deputy Director of VASEP P.RO Center, in 2021, of nearly 800 Vietnamese enterprises participating in seafood export activities, the top 100 enterprises with a turnover of US$20-400 million accounted for 65% of the total seafood export turnover of the country.

Particularly, Minh Phu Seafood Corp (Minh Phu Seafood Corp) achieved sales of over US$395 million, accounting for 4.44%, leading the seafood and shrimp exports of the country. In particular, Litopenaeus vannamei accounted for about 60% of Minh Phu's sales, and Penaeus monodon for 40%.

In 2021, Minh Phu shrimp products were available in over 40 markets around the world, with key markets such as the US, Japan, Canada, Australia and the Netherlands.

Seafood Joint Stock Company (STAPIMEX) took the runner–up position with a turnover of US$317 million, accounting for 3.56% with the strength of Litopenaeus vannamei. In 2021, STAPIMEX's products were exported to 25 markets including major ones such as the US, Canada, Belgium, Germany and Israel.

In third place, Vinh Hoan Joint Stock Company (Vinh Hoan Corp) recorded export sales of over US$276 million, accounting for 3.1%. In 2021 Vinh Hoan's catfish products were present in 36 markets around the world and achieved breakthrough growth in many markets such as the US, UK, Canada, Switzerland and Spain.

The next two companies are Minh Phu - Hau Giang and Ca Mau Seafood Processing and Services Joint Stock Company (CASES) with sales of US$249 million and US$197 million respectively.

According to Ms. Le Hang, in 2021, seafood businesses have buckled down to overcome the most stressful period because of Covid-19 in the third quarter to recover quickly. In particular, catfish and tuna businesses almost made a strong breakthrough in the fourth quarter. Especially, after social distancing was eased, many businesses achieved higher sales than before the peak of the pandemic. Large shrimp enterprises have also bounced back to production and exports in the fourth quarter, but most have not returned to the level before the peak.

In the first month of 2022, thanks to the growth driving force, seafood exporters are speeding up the fulfillment of orders. According to the Association of Seafood Exporters and Producers (VASEP), in 2022, it is expected that Vietnam's seafood exports will grow well, in which Vietnam's main shrimp product will continue to make a good impression as shrimp is an aromatic, delicious, nutritious and convenient food which can attract more demand globally.

In 2022, Vietnamese shrimp needs to maintain the main traditional markets of the US, Japan, and the EU along with focusing on potential markets such as China, Korea, UK, Australia, Canada, Singapore.

In 2022, shrimp exports to the US and EU are expected to continue to grow by double digits and exports to China will recover after a sharp decline in 2021, exports to South Korea and Japan grew slightly due to the stable demand from these two markets and there may not be breakthrough growth.

According to Mr. Ho Quoc Luc, former Chairman of VASEP, Chairman of the Board of Directors of Sao Ta Food Joint Stock Company, in 2022, shrimp processing and exporting enterprises should pay attention to the information about the pandemic. If the pandemic situation is minimized, the demand from the service segment will recover; therefore, demand will increase as well.