Two of Vietnam’s top shrimp companies, Minh Phu Seafood and Fimex (Sao Ta), have started to feel the impact of the country’s COVID-19 outbreak, its worst since the beginning of the pandemic.
Minh Phu and Fimex both recorded positive growth for July and the first seven months of 2021, but their export volumes and values fell significantly in August.
Vietnam has recorded more than 460,000 cases of the virus since 27 April, with most of the impact felt in the country’s south, where its aquaculture industry is concentrated. In comparison, between early 2020 and April 2021, Vietnam experienced fewer than 3,000 cases, according to government data.
Strict lockdowns are currently in place in many provinces and cities, including Ho Chi Minh City – Vietnam’s main gateway for seafood exports – and the Mekong Delta, the country’s primary region for seafood production.
During the lockdowns, factories and farms are still allowed to operate under the “three-on-site” model, meaning their workers must work, eat, and sleep within the plants and farms and completely isolate from the public and their families. However, many have closed because they are not able to meet the government’s requirements to continue operations. And for those which have remained open, including factories operated by Minh Phu and Fimex, capacity has been reduced sharply.
Minh Phu exported 3,982 metric tons (MT) of shrimp in August, 30.6 percent lower than the same month last year and down 37.6 percent from July. The firm’s export value in the month also declined 17.7 percent year-on-year and 33.1 percent month-on-month to USD 53.73 million (EUR 45.5 million), Minh Phu CEO Le Van Quang told SeafoodSource on 1 September.
Due to increases in previous months, however, Minh Phu’s export volume rose 9.87 percent year-on-year to 35,288 MT between January and August, while its export value in the period surged 19.6 percent year-on-year to USD 422.4 million (EUR 357.5 million).
For the first month this year, Fimex saw all of its operational results fall in August, which it attributed to the lower processing capacity during the implementation of the “three-on-site” policy. Fimex produced 1,618 MT of processed shrimp in August, down 32 percent year-on-year and dropping 31 percent from 2,346 MT in July.
The company’s shrimp export value in August landed at USD 11.1 million (EUR 9.4 million), contracting 56 percent year-on-year and decreasing 49.8 percent from July.
Fimex’s export volume in the first eight months grew 11.1 percent to 13,813 MT, which was worth USD 132.9 million (EUR 112.5 million), up 10 percent from a year ago.
However, Fimex said it plans to bring its operations back to full capacity beginning 10 September, as a result of the COVID-19 outbreak in Soc Trang Province, where it is based, coming gradually under control.
Fimex has also completed stocking its 320 shrimp ponds for the second annual shrimp crop at its Soc Trang farms, the company said.
Photo courtesy of Minh Phu Seafood
