Cao Lanh City, Vietnam-based pangasius firm Vinh Hoan will invest VND 1.5 trillion (USD 65 million, EUR 54.6 million) in projects directed at operational growth in 2021.
The announcement, and an outline of the company’s proposed projects, are listed in documents prepared for the company’s 2021 general meeting of shareholders, scheduled to take place on 29 April in Dong Thap Province.
The 2021 figure is much higher than its planned expenditure for 2020 of VND 580 billion (USD 25 million, EUR 21 million), which the company said was affected by the COVID-19 pandemic.
The company plans to allocate VND 700 billion (USD 30.4 million, EUR 25.5 million) to increase capacity at its feed production facility and hatchery, and to acquire land for a new agriculture-fisheries complex. Vinh Hoan also plans to invest VND 200 billion (USD 8.7 million, EUR 7.3 million) to upgrade its Thanh Binh processing plant in Dong Thap and the plants owed by its subsidiary Vinh Phuoc Food. The remaining VND 400 billion (USD 17.4 million, EUR 14.6 million) will be allocated for other projects, Vinh Hoan said.
Vinh Hoan has set a target of VND 8.6 trillion (USD 372.8 million, EUR 313.2 million) in sales for 2021, an increase of 22.2 percent year-on-year. It hopes to reap a net profit of VND 700 billion (USD 30.4 million, EUR 25.5 million), down 2.6 percent from last year.
In the latest business operation update, Vinh Hoan said it exported VND 436 billion (USD 18.9 million, EUR 15.8 million) worth of seafood products in February, down 31 percent month-on-month, due mainly to the drop in sales to its “reduced operational capacities” during the country’s biggest holiday, the Lunar New Year festival, in February.
In the first two months of 2021, Vinh Hoan’s sales rose 11 percent year-on-year to VND 1.068 trillion (USD 46.2 million, EUR 38.7 million).
Earlier this year, Vinh Hoan purchased a 51.29-percent stake in Sa Giang Import and Export Corp., which produces ready-to-eat foods such as shrimp chips, instant noodles, and some other products. It announced on 12 April it will buy an additional 1.817 million shares in Sa Giang to raise its ownership stake to 76.72 percent, it said in a filing to the State Securities Commission and the Ho Chi Minh Stock Exchange. At the market price of VND 86,000 (USD 3.72, EUR 3.13) per share, Vinh Hoan will spend around VND 156 billion (USD 6.75 million, EUR 5.67 million) on the additional shares.
Sa Giang was established in 1960, initially focusing on shrimp chips before expanding into production of value-added food products.
Sa Giang has become a subsidiary of Vinh Hoan following its acquisition. The subsidiary’s sales value in February was VND 16.42 billion (USD 710,880, EUR 597,240), 83.1 percent of which, or VND 13.65 billion (USD 590,950, EUR 496,490) was comprised of sales of shrimp chips. Sales to Europe accounted for 47 percent of Sa Giang’s total sales, with domestic sales accounting for 49 percent.
In February, Vinh Hoan also invested VND 70 billion (USD 3.0 million, EUR 2.55 million) to form the Thanh Ngoc Agriculture Food, in which it has a 70-percent stake. Thanh Ngoc focuses on processing of fruits and vegetables.
Photo courtesy of Sa Giang Import and Export Corp.
