GENERAL INFORMATION

In Vietnam, the fishery sector plays an important role in the national economy, accounting for about 4-5 percent of Gross Domestic Product (GDP) and about 9-10% of national export revenue.

More than 4 millions of people working in the fishery and the growth in production have attributed to the fish exports. Thanks to strongly increase in many years, Vietnam ranks among the top ten seafood suppliers and its seafood products are exported to 170 markets in the world.

Shrimp, pangasius, tuna, squid and octopus are main seafood products exported by the country. In which, shrimp exports create about US$ 3.5 – 4 billion, make up 46-50% of the total seafood sales of Vietnam. Earnings from pangasius reached at US$ 1.7 – 1.8 billion (25% of the total) and exports from Tuna and Cephalopods are US$ 450 – 550 million for each.

Exports to the U.S, Japan, EU, China and South Korea make up 75% of Vietnam’s seafood sales to the wolrd.

5 advantages for Vietnam seafood exports:  

(1)  High commitment and participation from Government, Industry and companies for food safety, environment  and social responsibility;

(2)  Able to supply the big volume and safe quality and stable seafood products;

(3)  Meet all the customers’ requirements, incl. the vertical linkage (integration) for each species sector;

(4)  Vietnam is one in few countries in the world which has the good and stable labor resource; 

(5)  Vietnam has Agreements / FTAs with many countries and territories and has advantages both in product quality and im-ex tax.  

Seafood companies: profits reach 4 year peak

(vasep.com.vn) Statistics on business results of 18 seafood listed companies in Q3/ 2014 showed increase in total revenue and profits, the highest in 15 consecutive quarters.

Total revenue of 18 companies in Q3 was VND 14,034 billion while profit reached VND 760.5 billion. Revenue upped 20% and profits upped 44% quarter on quarter.

Cumulative revenue of 18 companies in 9 months of 2014 reached VND 36,682 billion, up 25% year on year. Meanwhile, total profit after tax stayed at VND 1,733 billion, up 120% year on year.  

Minh Phu, Hung Vuong, Vinh Hoan, the 3 biggest companies, had good growth in Q3 this year. 

Minh Phu (MPC), the biggest shrimp company of the country took advantage of the decrease in global supply to upturn its shrimp exports growth. From January to August, Minh Phu earned US$  315 million, the nationwide largest quantity.  

Vinh Hoan and Hung Vuong, leading pangasius exporters, maintained the throne in the industry in the first 9 months of 2014. Profit of Vinh Hoan grew 155% year on year over the same period as gross profit margin rose and profit from share transfer of its subsidiary whilst Hung Vuong is likely to report higher profits at the end of the year.  

Export growth was the motive for positive results in 2014. Seafood exports in 8 months reached nearly US$ 5 billion, up 123% year on year. 

Expectations for the successful negotiation of a free trade agreement (FTA) with tax relief will support seafood business in the coming years. 


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