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Vietnam's seafood industry and the great ambition

No longer depending on a certain market is the target of Vietnamese seafood firms and Vietnamese businesses in general.

Recently, the Shareholders’ Annual General Meeting of a company in Vietnam’s top three seafood exporting enterprises voted to approve the company’s basic indicators for 2022.

Accordingly, the company will strive to earn net revenue of VND 8,300 billion and after-tax profit of over VND 900 billion, 45% and 6.3 times higher than those of the previous year. The above revenue and profit are defined on the basis of orders signed for 2022, with good prices.

A representative of the company's Board of Directors said that the demand for seafood in the world market in the first months of the year was extremely positive, and the company had signed many orders. The high demand for seafood has pushed the export price of pangasius to new peaks, even at over US$6 per kilo for some markets, the highest price ever.

He also revealed that by the end of the first quarter of 2022, his firm earned more than VND 1,000 billion of revenue and VND 201 billion of after-tax profit, the record high level of quarterly profit in the company's history. That has partly shown the annual business trend and the profit in the second and third quarters will continue to hit new milestones.

After the Lunar New Year holiday, the price of raw pangasius skyrocketed to approximately VND 34,000 per kilo, sometime reaching the milestone of VND 35,000 or even VND 40,000 per kilo, thus the firm earned high profit from the gap in the prices for raw material between the two periods (before and after the lunar New Year 2022).

According to this representative, at a time when farmers and other seafood businesses faced difficulties because they could not sell their goods when the southern provinces tightened the social distance rules due to the prolonged Covid-19 pandemic, this company implemented three 3-4 on-the-spot method to mobilize resources, actively took the opportunity to increase stockpiles of material pangasius at "excellent prices" and also purchased many properties at "good prices".

Thanks to a system of 3 modern cold storages, the company has stored material pangasius worth trillions of VND, with the price of less than VND 20,000 per kilo. Compared to the current prices for pangasius, which is rising and even with limited supply, the company has made huge profits.

The abundant stockpile of material pangasius is the driving force for the company to implement appropriate business strategies at all times.

Europe is a big market for this company, which will be also the bright spot of Vietnam's pangasius industry in the near future. In particular, Canada – a newly exploited market - also promises many new developments. The US is the company's traditional market, with the segment of high-end product lines, has always maintained good grow rates over the years.

Since 2010, the company has pioneered in exploring the Chinese market and now it is the Vietnamese seafood exporter with the highest market share in the country of billions of people.

In the South American region, the firm’s biggest market is Mexico, followed by Colombia and Brazil.

In general, the company’s market structure is quite diverse and has achieved impressive growth. This shows the firm’s right strategy in developing sustainable consumption channels with the philosophy of "don't put all your eggs in one basket".

Currently, when taking the initiative of 100% of production materials, including the source of fish seed at reasonable prices, and a flexible market development strategy, the company is aiming to become a leading firm of pangasius processing and exporting industry. After 2 years affected by Covid-19, the Vietnamese seafood industry expects to have a year of growth based on the great efforts of local enterprises.

Hai Yen

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