(seafood.vasep.com.vn) The recovery of China's economy will contribute to the growth of Nam Viet JSC's pangasius export output in 2023, offsetting the decline from other export markets of the enterprise.
In the first two months of 2023, Vietnam's pangasius exports decreased in both value and volume, with a decrease of 48% and 35% year-on-year, respectively. This downward trend is mainly due to the sudden drop in import demand, especially the US. The average selling price decreased by 14% over the same period in 2022 and by 50% from the peak set in the second quarter of 2022.
Enterprises that rely heavily on the US market such as Vinh Hoan and BIEN DONG Seafood have the largest decrease in export value in the first two months of the year, with -48% and -75% respectively over the same period in 2022.
In contrast, companies with a large distribution market share in China such as Navico, IDI, Godaco can take advantage of the recovery of this market to mitigate the impact, helping these enterprises to maintain the slighter fall in export value.
Navico is one of the export companies that can significantly benefit from the recovery of the Chinese economy
Navico is one of the export companies that can significantly benefit from the recovery of the Chinese economy. The increase in orders from the Chinese market will help Navico's pangasius export volume to grow again, thereby compensating for the declining trend in other markets.
Although Navico's profit in 2023 is better than the general situation of the industry, it will still be difficult to achieve positive growth due to the high base recorded in the same period in 2022.
Navico currently accounts for 15% of pangasius export value from Vietnam to China. The export price in the Chinese market is still relatively stable, the demand of this market is still high because it just opened after the prolonged Covid-19 lockdown. Navico intends to expand the customer base to boost orders in this market. Export volume to China is expected to grow by about 45% in 2023 and is the main growth driver for Navico.
In 2023, Navico is expected to reach VND 4,612 billion in net revenue and VND 619 billion in profit after tax, down 5.8% and 8.1% respectively compared to 2022.
Forecast on Vietnam pangasius industry in 2023 - 2025
Compiled by Thuy Linh