Seafood enterprises make breakthrough from export aspect

Seafood enterprises try to process to increase export.

Revenue got record

In the first half of 2022, the seafood industry's exports recorded many record milestones, such as sales and growth records compared to the first half of the year. Seafood exporters have earned US$5.7 billion, up nearly 40% over the same period in 2021.

According to Ms. Le Hang, Deputy Director of VASEP's Training Center, in the storm of input price inflation and high selling costs, seafood processing and exporting enterprises are still strong to get over. Seafood enterprises have made efforts to overcome and seize opportunities from markets with great demand, such as the US, EU, China and markets that always prefer processed seafood products in Vietnam, such as Japan, South Korea and Australia, along with many other potential markets to increase exports.

In the general export results of the seafood industry, the record results of pangasius products with sales of US$1.4 billion, up 82% over the same period. Shrimp exports still accounted for the highest proportion of 40% with nearly US$2.3 billion. Although seafood products were difficulties in raw materials, they were still maintained a growth rate of 12-55% over the same period, obtaining in over US$2 billion.

Lacking raw materials for export processing, shrimp export sales in June 2022 only maintained a modest growth of 7% to US$450 million. Accumulated in the first half of 2022, shrimp exports reached US$2.3 billion, up 33% over the same period and accounting for 40% of total seafood exports. Price inflation and lack of raw materials are a difficult problem for shrimp enterprises in the current period. Small size fresh/frozen vannamei shrimp is still popular during this inflationary crisis. However, some enterprises also choose to increase the proportion of value-added processed shrimp to export to high-end markets such as Japan, the US, and the EU, to overcome the scarcity of raw materials.

Many businesses make breakthroughs

According to VASEP, despite difficulties, many enterprises had outstanding growth in export sales in the first half of this year. The group of businesses with strong growth focused more on the pangasius industry, in which, Vinh Hoan Joint Stock Company ranked first among nearly 900 seafood exporters with sales of over US$226 million, up 82% over the same period last year.

Market fluctuations in 2022 such as inflation and the war between Russia and Ukraine are an opportunity for Vietnam's pangasius export industry. Pangasius will be selected as an alternative to pollock and cod in some major markets.

In addition to Vinh Hoan, other pangasius export companies also recorded high sales such as East Sea Fishery Company up 41%, IDI company up 86%, NAVICO up 41%, Van Duc Tien Giang company increased nearly 61%, and Dai Thanh Tien Giang Company increased 118%.

Leading in shrimp export enterprises and second in seafood exporting enterprises is Soc Trang Seafood Joint Stock Company (STAPIMEX) with a turnover of US$188 million, up nearly 25% over the same period. Minh Phu Group ranked third, sales increased slightly by 6%, however, exports of Minh Phu - Hau Giang Company increased by 30%. Many other shrimp enterprises still maintained high growth such as: Ca Mau Fisheries and Services Joint Stock Company (CASES) increased by 47%, Thuan Phuoc Company increased by 13%, Tai Kinh Anh Company increased by 73%.

Anh Nhan Manufacturing and Trading One Member Co., Ltd. made a spectacular breakthrough with sales nearly five times higher than the same period last year.

According to Mr. Ho Quoc Luc, Chairman of the Board of Directors of Sao Ta Food Joint Stock Company, in a generally difficult situation the shrimp farm had quite positive results, contributing to reducing the cost of final products, significantly contributing to increasing business performance. FMC's overall revenue reached US$118.6 million, equaling 136% over the same period in 2021; overall profits are expected to increase by over 40% over the same period in 2021.

According to FMC leaders, inflation makes demand unsatisfactory and consumption prices difficult to improve. The source of raw shrimp will decrease sharply because farmers are reluctant to release the second crop due to the potential disease. The company's strategy is to increase sales to markets that match the company's strengths and have good profit margins.

For tuna exporters, more than 80% of tuna raw materials must be imported from countries and territories that have not yet had FTAs with Vietnam, meaning businesses cannot take advantage of the advantages of the FTA to increase their competitiveness compared to other exporting countries. This is also a big challenge for tuna processing and exporting enterprises.

It is more difficult for shrimp and pangasius, seafood enterprises have made their best efforts and achieved higher results than last year. Tuna companies such as Hai Long Nha Trang increased export sales by 58%, Binh Dinh Seafood Joint Stock Company increased by 33%, Hai Vuong Company (HAVUCO) increased by 144%, Tin Thinh Company doubled sales. Many other seafood companies also recorded a strong increase in exports such as Nha Trang Seafood F17 up 34%, NTFS CPTS Company up 87%; Hai Nam Co., Ltd increased 67%.

In the second half of 2022, shrimp and seafood materials will be more difficult than the beginning of the year, and the demand in major markets will also cool down. But, with the flexibility and efforts of Vietnamese seafood enterprises, this year seafood exports will surely reach a record with an export turnover of US$10 billion.