2018 could be considered as a successful year of Vietnam’s fishery export sector with total turnovers of nearly USD 9 billion, up by 8.4% compared to prior year. Especially, pangasius export set a 20-year record high at USD 2.3 billion, up by 27%. The nationwide pangasius farming area amounts to 5,400 ha in 2018, up by 3.3%; and total outputs reach 1.42 million tons, up by 8.4%.
According to Vietnam Association of Seafood Exporters and Producers (“VASEP”), the dramatic growth of the pangasius sector is derived from the synergy of many factors including high selling price base since 2017, rising demands in big markets, enterprises’ awareness to enhance quality, initiative in supply source and product diversification.
Given ever-rising demands, experts expect pangasius sector will continue to grow in 2019 when the world’s output is forecast to reach 3 million tons, up by 4.6% as compared to prior year. Especially, Chinese market has much room for growth with extremely high consumption demand, or US market has many highlights thanks to reduction in trade barrier.
Let alone, Vietnam’s pangasius is expected to gain benefits from the FTA wave and the US-China trade war. Total export turnovers accordingly are estimated to reach USD 2.4 billion, equivalent to increase in farming areas by 5.5 billion ha with total output of 1.47 ton, according to the Directorate of Fisheries.
First to mention, Hung Vuong Fishery for example. After years of difficulties, at this year’s Annual General Shareholders’ Meeting, Chairman Duong Ngoc Minh stated boldly that forecast profits of VND 11 billion in 2019 is the worst-case scenario. That is, according to him, the actual results could be much better if POR14 review period of US tax rate applied for Hung Vuong is in line with the company’s expectation. With success as expected, Mr. Minh even refused to borrow from banks, a persisting headache problem over the last time.
When being asked, Hung Vuong’s leader would be confident to mobilise capital from its customers and partners.
Currently, Hung Vuong is operating with sufficient fish output until next July, at the same time, the company also sets aside money until April and May with positive results to shift its focus on farming. Hung Vuong states to quickly bounce back to rise to the top with annual revenues of 20,000 tons and pangasius export of more than USD 3 million.
For seafood giant Vinh Hoan, they started 2019 with advantage of stable top exporting markets, the company aims to focus on providing fillet products and product chains targeted to niche markets. Thanks to good infrastructure, the world’s qualified farming system and services provides, the company expects to raise the prices compared to the market’s.
To achieve their target, the company raised its charter capital to 45% to establish Vinh Hoan Pangasius Breed Manufacturing Limited Liability Company.
Regarding operating business, Vinh Hoan also ended up 2018 with positive results of VND 9,323 billion, equivalent to profit after tax of VND 1,452 billion, a 2.4-fold increase as compared to prior year. It is worth noting that by-products of Collagen and Gelatin record a remarkable growth in 2018 with total export of USD 11.2 million, double 2017 results.
Another plus point, according to primary result of the latest POR14 review for the period from 1/8/2016-31/7/2017, Vinh Hoan continues not to be on the list and enjoy 0% tax rate.
Navico (ANV), another company bounces back after years of investing in other industries and incurring losses. With advantage in initiative in the farming areas, Navico felt the limited impact of rising fuel price in 2018, but earned a net profit of VND 600 billion, a four-fold increase. Furthermore, Navico even expects to achieve a revenue of VND 6,000 billion and profit after tax of VND 700 billion in 2019, and profit of 1,000 billion in 2020.
The positive forecast is based on the growing pangasius sector in general together with investment in production and farming areas. Recently, company officially launched Binh Phu Hi-tech Seafood Farming Project with total area of 600 ha and total investment of VND 4,000 billion. Once coming into operation, it is expected to produce 200,000 tons pangasius per year with 100% export.
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