return icon Vietnamnet.vn

Vietnamese seafood firms’ profits drag on weak exports

Lack of production materials and flagging export value have caused seafood companies to suffer losses in the third quarter of this year.

 

{keywords}

In the first nine months of 2019, the country's total seafood exports were estimated at nearly $6.3 billion, down slightly by 0.8 per cent against last year. — Photo tinnhanhchungkhoan.vn

 

The Dong Thap Province-based Vinh Hoan Company (VHC), the largest tra fish exporter in Viet Nam, saw post-tax profit drop by 58.3 per cent year-on-year in Q3, reaching VND254 billion (US$10.9 million).

VHC’s net revenue also dropped by 25 per cent against last year, totalling VND1.88 trillion.

The company attributed the sharp fall in profit in the third quarter to the significant decrease in export volume. VHC’s revenue from exports declined from $40 million in June to $22 million in September.

In the first nine months, net revenue at VHC decreased by 13 per cent to VND5.69 trillion, while post-tax profit fell by over 5 per cent to VND981 billion.

Minh Phu Seafood Joint Stock Company (MPC), one of the world’s biggest shrimp firms involved in farming, processing to sales, also experienced a plunge of 31 per cent in gross profit in Q3 to VND249 billion.

MPC’s net revenue totalled VND3.2 trillion, a decrease of 15 per cent year-on-year. Revenue from its financial segment also plummeted 71 per cent to VND24 billion.

The company also saw lower export value in July, August and September, down by 3 per cent, 20 per cent and 34 per cent, respectively.

The company’s revenue from exports to the US plunged 59 per cent in September and 14.3 per cent in the first nine months of this year.

In the first nine months, MPC’s total revenue from exports reached $198 million, down 20.5 per cent over the same period last year and only reaching 57 per cent of the target set for 2019.

Minh Phu said that since July, due to prolonged heavy rains, the amount of shrimp fingerlings in Viet Nam had declined significantly, so the company had been unable to meet customer demand.

In August, MPC's inventories fell by more than 60 per cent and there were fewer products to export, forcing the firm to stop taking orders for the remainder of the year.

As a result, Minh Phu's third-quarter post-tax profit was only VND103 billion, down 54 per cent compared to the same period last year. In the first nine months, the company's revenue increased by 1.7 per cent to VND8.39 trillion but post-tax profit dropped by 10 per cent to VND484 billion.

Currently, the company is trying to complete its Loc An hi-tech farming area in order to be able to meet demand in the years to come.

Cuu Long Fish Joint Stock Company (ACL) witnessed revenue and post-tax profit down by 44 per cent and 80 per cent in Q3, reaching VND261 billion and VND19 billion, respectively.

In the first three quarters, ACL achieved VND1 trillion in revenue and VND132 billion in post-tax profit, both down by 10 per cent year-on-year.

The last quarter of 2018 was a great period for the pangasius catfish industry as prices climbed sharply. ACL earned a record profit of VND230 billion during that time. However, pangasius prices then gradually fell in the second quarter of 2019, affecting the business of ACL and many other companies.

Mekong Fisheries Joint Stock Company saw revenue rise by 8 per cent in Q3, reaching VND55 billion, but gross profit was down by 31 per cent, touching VND3.3 billion.

In Q3, revenue at Hung Vuong Joint Stock Corporation (HVG) plunged by 64 per cent to VND527 billion, and the company suffered a loss of VND129 billion.

HVG attributed the drop in revenue to its divestment from Viet Thang Feed JSC that cut its revenue from the sale of animal feed.

One of the few seafood processors to report higher profit in Q3 is Nam Viet Corporation (ANV).

In Q3, ANV recorded a net revenue of VND1.12 trillion, up 7 per cent compared to 2018. Post-tax profit reached more than VND152 billion, up 34 per cent year-on-year, marking eight consecutive quarters of growth.

ANV has three factories with a capacity of 600 tonnes per day and is working on its Binh Phu project with over 200 ponds of mature fish and 40 ponds of fingerlings.

ANV's export markets are quite diverse, including the US, Mexico, Brazil, the EU, China and Southeast Asia.

Nguyen Duy Nhut, deputy chairman of the board of directors cum deputy general director, said the company had increased its market share of pangasius exports in China from 17 per cent to over 26 per cent, and was striving to reach 35 per cent.

According to the Viet Nam Association of Seafood Exporters and Producers (VASEP), in the first nine months of 2019, the country's total seafood exports were estimated at nearly $6.3 billion, down slightly by 0.8 per cent against last year, of which exports of shrimp and pangasius had dropped by 7 per cent and 8 per cent, respectively. — VNS

Vietnam’s seafood falls in grades because of IUU yellow card

Vietnam’s seafood falls in grades because of IUU yellow card

The EU, which was once the second biggest seafood export market for Vietnam, consuming 18 percent of Vietnam’s seafood exports, fell to fifth, with 13 percent, after the EU gave Vietnam the yellow card.

Trade pacts bring opportunities for Vietnam seafood industry's sustainable growth

Trade pacts bring opportunities for Vietnam seafood industry's sustainable growth

The seafood industry must envision a long-term strategy to make full use of new trade pacts and prepare for problems that might arise when they take effect, Truong Dinh Hoe, VASEP general secretary, said.  

MORE NEWS

Foreign investors sign billion-dollar deals to invest in southeast

Foreign investors committed to investing billions of dollars in the southeast via signing memoranda of understanding (MoU) in petrochemicals, electronics, industrial park infrastructure, urban areas, and tourism.

Nha Trang school reopens after mass food poisoning case

ISchool Nha Trang reopened on Monday morning, a week after a mass food poisoning case left one student dead and hundreds of students and teachers hospitalised.

VN-Index breaches over 1,000 points

The rallies were driven by large-cap stocks in appealing industries, including banking, realty, manufacturing and utilities.

Da Nang hosts Western & Central Pacific Fisheries Commission’s regular session

The 19th regular session of the Western & Central Pacific Fisheries Commission (WCPFC) opened in the central city of Da Nang on November 28.

Ministry works to boost rail import-export volume to 5 million tonnes by 2030

The Ministry of Transport has submitted a plan to increase international freight transport by rail by 2030, with a target of shipping between 4 and 5 million tonnes.

PM holds telephone talks with French counterpart

Prime Minister Pham Minh Chinh on November 28 had a telephone conversation with his French counterpart Elisabeth Borne to seek ways to further strengthen the Vietnam-France strategic partnership, especially in economy, trade and investment.

Famous object designer presents art of assembling with Vietnamese lacquer

For the first time, Vietnamese people have a chance to see with their own eyes unique artworks by famous jewellery and object designer Gilles Jonemann that are on display at an exhibition in Hanoi.

Hanoi construction density from above

Many areas in Hanoi have seen high construction density with houses and high buildings due to rapid urbanisation.

Businesses in quandary due to credit limit

The long-term credit push to support the economy has a distorted capital flow.

VIETNAM NEWS HEADLINES NOVEMBER 28

National Assembly to hold extraordinary session in January 2023

Book tells journeys of Vietnamese immigrants to the UK in search of better lives

The life stories of Vietnamese migrants who are seeking better lives in the UK are vividly told in a new book.

Vietnamese movie honoured at France festival

“Tro tan ruc ro” (Glorious Ashes) by Bui Thac Chuyen won the "Golden balloon" award (Montgolfière d'or) at the Festival des 3 Continents 2022 which took place in Nantes, France, from November 18 – 27.

VIETNAM BUSINESS NEWS NOVEMBER 28

Gloomy outlook for exporters of aquatic products next year

Male model finishes fourth runner-up at Mister Grand International

Nguyen Vu Linh, Vietnamese representative at Mister Grand International 2022, was awarded the fourth runner-up title during the male pageant’s grand final held in Trinidad and Tobago on November 26.

Magnitude three earthquake hits northern border locality

An earthquake measuring three on the Richter scale jolted Ha Giang city in the northern border mountainous province of the same name on November 28.
back_to_top