Deep processing helps FIMEX VN maintain export orders

In 2022, the sales of FIMEX VN reached nearly 230 million USD, an increase of nearly 10% and the profit is likely to reach over 340 billion VND, exceeding the planned of 320 billion VND.

One of the highlights in the export activities of FIMEX VN was that the market structure has changed quite strongly. FIMEX VN expanded its market share in Japan significantly, from 28.1% (2020), 38.9% (2021) to 43.8% in 2022. In 2022, FIMEX VN’s strategy also changed,  focusing more on deep processing. Deeply processed products accounted for about 55% of FIMEX VN’s products. Both of these changes are part of the strategy "Market, market segment, product, customer" that FIMEX VN has set out since the end of 2020.

This strategy will be the solid foundation for the upcoming years when cheap Ecuadorian shrimp hit the US market, causing the Vietnamese shrimp’s market share to decline. 

According to Mr Ho Quoc Luc, Chairman of the Board of Directors of the company, in order to expand  its market share, as of 2021, FIMEX VN  has  offered Japanese consumers relatively soft selling prices. In 2021, thanks to successful shrimp farming,  FIMEX VN could lower the price of shrimp, which created  a foundation for other moves and generated good profit.

In 2022, though the shrimp farming situation was not positive, the consumption price has been better because Japanese consumers have perceived the stable quality of FIMEX VN products. Therefore, the FIMEX VN  2022 profit is higher than the previous year and the highest in the 26 years of FIMEX VN's operation.

Sales in 2022 was very positive as Japanese consumers have perceived the stable quality of FIMEX VN products

In 2023, with the difficulties due to the impact of economy, Mr. Ho Quoc Luc warned that consumption in major markets will be very quiet, especially after the blizzard in the US at the end of 2022 that will cause consumers to reduce spending. FIMEX VN still has orders for daily processing, although not many, but compared to the general situation, it is still a bright spot.

“This year, there will be more shrimp ponds, and a new factory will start at the beginning of the year. FIMEX VN will also  train our employees to be always ready  to accelerate production when the ôpportunity comes, warehouse costs will be minimized as well. FIMEX VN always prioritize the long-term, stable and sustainable development "- Mr. Luc shared.

The leader of the company also gave some advice in this tough period. That is, efforts to gather information, analyze and evaluate before  making decisions. If it is assessed that the difficult market will last for a long time, it is necessary to quickly release inventory at soft prices to limit capital and warehouse jams. At the same time, pay close attention to inventory management, specifically, equip cold storage capacity with calculated reserves to store actively.

Studying domestic and foreign supply situations as well as consumer demand trends in order to have a practical and effective calculation in consuming and storing goods. Check inventory in time to take advantage of all opportunities.

Only buy raw materials for existing orders, avoid increasing inventory; cutting spending, raising the awareness of saving, reviewing consumption norms, and optimizing processing processes. Focus resources on main production, do not invest suffusely.

Compiled by Thuy Linh