Vietnam’s leading pangasius exporter, Vinh Hoan, saw its net profits in 2021 rise significantly despite the COVID-19 pandemic.
The Cao Lanh City -based company reported a net outcome of VND 1.1 trillion (USD 48.9 million, EUR 43.2 million) in 2021, an increase of 54 percent from 2020. Vinh Hoan’s net profit in the fourth quarter jumped more than 2.7 times to VND 461 billion (USD 20 million, EUR 17.9 million).
In a filing to the Ho Chi Minh Stock Exchange on 19 January, the company attributed its net profit growth to the increase in export volumes and export prices.
Vinh Hoan’s estimated export value, excluding sales from its Sa Giang subsidiary, was VND 8.7 trillion (USD 383 million, EUR 338.2 million) in 2021, up 23.8 percent from 2020.
Its total sales value last year rose 28.5 percent to VND 9.05 trillion (USD 398.3 million, EUR 352 million). The company’s sales value in the fourth quarter also surged 38.5 percent year-on-year to VND 2.7 trillion (USD 118.4 million, EUR 104.6 million).
Seafood companies in Vietnam experienced a challenging year in 2021 due to the fourth COVID-19 outbreak, which caused severe disruptions in the seafood supply chain.
Navico, another major pangasius exporter in Vietnam, was not as lucky as Vinh Hoan. The An Giang-based company said its net profit in 2021 fell 36.6 percent to VND 128 billion (USD 5.6 million, EUR 5 million) partly due to a global surge in freight costs. Its sales value last year rose slightly year-on-year to VND 3.5 trillion (USD 153.6 million, EUR 135.7 million).
The Vietnam Association of Seafood Exporters and Producers (VASEP) has expressed cautious optimism about sales of pangasius in 2020, as challenges caused by the COVID-19 pandemic continue to challenge the industry.
Export growth in 2022 is contingent upon a continued shift in the global response to a more accommodating approach toward COVID-19. Additionally, many governments have introduced stimulus packages to promote growth in 2022, which could lead to a boost in seafood sales. Amid inflation risks and possible supply chain disruptions caused by the pandemic, companies will face headwinds including increases in electricity prices, feed, and raw materials, causing production costs to increase, the trade group said.
Photo courtesy of Vinh Hoan
