The first quarter of 2019 continued to receive good news from many pangasius businesses. Many companies announced profit increase several times over the same period last year thanks to the general advantage of the whole industry.
For VINH HOAN CORP (HoSE: VHC), the company recorded profit after tax over VND 307 billion in the first quarter, 3 times higher than the same period in 2018. This result of Vinh Hoan thanks to higher selling prices year on year, increasing gross profit margin from 14% to 24%.
In 2018, Vinh Hoan set a profit record of VND 1,442 billion. The company still maintained and developed in major markets. The export rate to the US, a market with very high profit margins of Vinh Hoan, increased from 40% to 50% in 2018. In addition, Vietnam's leading pangasius business was also the third largest supplier to China with a market share of 9%, concentrating in the high-end segment.
In 2019, Vinh Hoan continued to benefit from large markets when the company still enjoyed the 0% tax rate in the US. Along with that, the seafood tax in the EU market will reduce from 5.5% to 0% according to the 3-year roadmap. This will be a favorable condition for Vinh Hoan to increase its export to this market (exports to EU in first quarter increased by 40%).
Nam Viet Corporation (HoSE: ANV) is rising strongly after aggressively divesting outside the industry and investing in pangasius. After recording a record profit of 600 billion in 2018, Nam Viet continued to announce profit of over 200 billion dong in QI, up by 136% thanks to the growth from existing markets and low input material costs.
Notably, the company's gross profit margin improved sharply from 17% in Q1/2018 to 30.5% in Q1/2019. Profit after tax margin also rose from 9.3% to 22%.
Growth in export turnover of Nam Viet was thanks to strong growth from the European market (up 90%) and ASEAN countries (up 24%). These were also the two largest markets, accounting for nearly 40% of total exports in the first quarter in 2019.
In terms of scale and market share, Cuu Long Fish Corporation (HoSE: ACL) was smaller than VHC and ANV. However, the corporation also achieved high business efficiency. In 2018, ACL recorded a record profit after tax of VND 230 billion, 11 times higher than that of 2017.
In the first quarter of this year, the company's revenue increased by 34% to VND 445 billion. Profit after tax was over 54 billion dong, 9 times higher than the same period in 2018. High gross profit margin as well as the less volatile cost were the main factors helping the company achieve this result.
This pangasius business has shifted its sales structure to many different segments in many markets. The company was officially a supplier to Walmart supermarket, gaining a large market share in many traditional markets such as South America, Middle East, ... and penetrating deeply into Asian markets (sales in China increased by 27% in 2018).
Aquatex Bentre (HoSE: ABT) also recorded gross profit margin increased to 20% in the first quarter, whereby the company reported profit of over VND 11 billion, up 24% over the same period in 2018. In 2018, the company's profit hit nearly 67 billion, up 135% compared to 2017.
The member company of The PAN Group did not export pangasius to the US, they concentrated on Japanese and European markets as these were sustainable markets and had a better profit margin. Business's leaders aim to develop a closed cycle (including breeding, farming and processing pangasius) to produce high quality products for consumption in fastidious markets. The company advocates competition by quality, not competing by price.
Some other businesses also had positive results in the first quarter. Camimex Group (HoSE: CMX) reported a profit of 24 billion dong, 6 times higher than that of 2018 thanks to an increased 24% of gross profit margin and revenue from sudden liquidation of assets. Hung Vuong (HoSE: HVG) also unexpectedly reported a profit of 6 billion dong in the first quarter (January 1-March 31) while the same period still saw a loss of 387 billion dong.
Pangasius exports in the first quarter rose by 7.8%
Vietnam Association of Seafood Exporters and Producers (VASEP) announced that by the end of March, the total value of Vietnamese pangasius exports reached US$472.2 million, up 7.8% over the same period in 2018. The four largest importers were China - Hong Kong, EU, US and ASEAN respectively.
By the end of March, pangasius exports to ASEAN reached US$55.17 million, up 18% compared to the same period last year. Export value to Thailand, the Philippines and Malaysia climbed by 6.5% 40.6% and 70.9% respectively.
Currently, taxes on frozen pangasius products are at 0% according to ASEAN (ATIGA); ASEAN - China (ACFTA) and ASEAN - Korea (AKFTA).
According to a report of RongViet Securities Corporation (VDSC), the EU market has increased strongly by 76% in the first quarter thanks to greater demand for seafood and the impact of Brexit event. VDSC identifies that the prospect of pangasius exports in this market in the coming time maintains an upward trend. However, this trend is no longer as strong as in the first quarter as Brexit deadline has been moved to October 31.
The US market dropped 5% in the first quarter due to high inventories from the end of 2018. At present, the US plans to raise taxes up to 25% with Chinese seafood products. In addition, the POR14 results were not as expected but still lower than POR13. Based on this forecast, VDSC believe that the US will achieve positive growth in time to come.
The Chinese - Hong Kong market fell for the first time by 2% in the first quarter due to a 13% drop in March. The market movements in the coming time will depend on whether the US will impose a 25% tax on Chinese tilapia products or not. Accordingly, Vietnamese pangasius may compete fiercely with China's domestic tilapia.
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Deputy Minister of Agriculture and Environment Phùng Đức Tiến talked to Việt Nam News reporter Tố Như about the future development orientation after the ministry officially began operations.
(vasep.com.vn) Vietnam is signatory to three new-generation Free Trade Agreements (FTAs), and specifically with the United Kingdom (UK), maintains two FTAs: the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the UK-Vietnam Free Trade Agreement (UKVFTA). The confluence of content and approaches within these two Agreements fosters a conducive environment for enterprises from both nations to maximally leverage trade and investment opportunities, notably encompassing Pangasius exports to the UK.
(seafood.vasep.com.vn) Sao Ta (FMC - HoSE), a key subsidiary of PAN Group, has announced impressive business results for February. The company's shrimp production reached 1,913 tons, a 106% increase compared to the same period last year, while agricultural product production reached 67 tons, up 6%.
(seafood.vasep.com.vn) The tuna export market of Vietnam in the first month of 2025 has seen notable fluctuations. Exports to most major markets have decreased compared to the same period in 2024.
The Seafood Expo Global is the largest seafood industry event in the world, truly becoming a professional playground and a strong foundation for connecting the international seafood community. The Seafood Expo Global (SEG) 2025 will take place from May 6 to May 8, 2025 in Barcelona, promising to be an important platform for the global seafood community to meet, trade, and seek business opportunities in seafood industry.
(seafood.vasep.com.vn) According to data from Vietnam Customs, Vietnam’s pangasius exports in January 2025 reached over USD 133 million, marking a 19% decline compared to the same period last year. Notably, the ranking of the top pangasius import markets saw significant adjustments.
(seafood.vasep.com.vn) According to a report by the General Statistics Office, the estimated pangasius output for January 2025 reached 102.5 thousand tons, representing a 6.0% increase compared to the corresponding period of the preceding year. This surge is attributed to the rise in pangasius material prices within the Mekong Delta, which has incentivized aquaculture farmers to expand their stocking activities. Concurrently, this price increase has facilitated processing enterprises to intensify procurement efforts to meet export demands during the early part of the year.
(seafood.vasep.com.vn) Between 2015 and 2024, Vietnamese pangasius exporting enterprises have undergone notable transformations in rankings and experienced fluctuations in developmental strategies, competitive intensity, and business efficacy. This dynamic is clearly illustrated through shifts in export turnover and the proportional contribution to the national pangasius export volume among the Top 5 enterprises.
VASEP - HIỆP HỘI CHẾ BIẾN VÀ XUẤT KHẨU THỦY SẢN VIỆT NAM
Chịu trách nhiệm: Ông Nguyễn Hoài Nam - Phó Tổng thư ký Hiệp hội
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Trưởng Ban Biên tập: Bà Phùng Thị Kim Thu
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