Many Vietnamese pangasius and shrimp exporters endured a challenging Q3 2023, as they struggled with falling sales by value and lower profits due to weak global demand.
Between July and September 2023, Vietnam shipped seafood globally worth USD 2.5 billion (EUR 2.3 billion) – a 12 percent year-over-year decrease. In the first nine months of 2023, the country’s total seafood export value slid 23 percent year over year, hitting USD 6.6 billion (EUR 6.1 billion). Vietnam’s pangasius sales in the nine-month period fell 31 percent year over year to USD 1.4 billion (EUR 1.3 billion), and its shrimp exports contracted by 26 percent from a year earlier to USD 2.5 billion (EUR 2.3 billion), according to data from the Vietnam Association of Seafood Exporters and Producers (VASEP).
This decline in the country’s seafood sales began in Q4 2022, stemming from subdued global demand and intensified competition from other exporting nations.
Vietnam’s top pangasius exporter, Vinh Hoan Seafood, saw its sales value dive 17 percent year over year to VND 2.7 trillion (USD 111.6 million, EUR 102.7 million) in Q3 2023, while its revenue for the first three quarters of 2023 amounted to VND 7.6 trillion (USD 315.8 million, EUR 291 million), a 29 percent drop compared to the same period last year.
Another major pangasius exporter, Nam Viet Corporation (Navico), reported VND 1 billion (USD 41,000, EUR 38,000) in Q3 2023 after-tax profit – a 99.2 percent drop compared to the same period last year due to the lingering impact of low selling prices. Its sales in the same period fell 11 percent year over year to VND 1.1 trillion (USD 45.4 million, EUR 41.9 million).
Similarly, pangasius player Investment and Development of International Fisheries (IDI)’s net profit plummeted by 80 percent in Q3 2023 to VND 23 billion (USD 950,740, EUR 875,630) due to a decline in orders and mounting interest expenses. By the end of September, IDI’s total outstanding loans amounted to approximately VND 4.4 trillion (USD 181.7 million, EUR 167.3 million), around 1.3 times greater than the owner's equity of VND 3.4 trillion (USD 141.7 million, EUR 130.6 million), constituting 52 percent of the company’s total capital.
A rare company boasting a positive performance in the Vietnamese pangasius sector was Cuu Long Fish Joint Stock Company (ACL), which recorded a Q3 2023 net profit of VND 5 billion (USD 207,000, EUR 190,000), up 5 percent compared to the same period in 2022, despite rising production costs.
The Ben Tre Seafood Import and Export Joint Stock Company also managed to maintain profitability despite declining revenue, with its net profit surging 13.9 percent year over year to VND 14 billion (USD 576,000, EUR 531,000) in the third quarter of 2023. However, the profits originated from financial investments made by the company, rather than its pangasius trading.
The country’s largest shrimp exporter, Minh Phu Seafood, reported a loss of VND 26 billion (USD 1.1 million, EUR 990,000) in Q3 2023, compared to a profit of VND 332 billion (USD 13.7 million, EUR 12.6 million) the company earned in the same period a year ago. Minh Phu attributed the Q3 loss to a decline in sales value, which contracted 42 percent to VND 3 trillion (USD 123.5 million, EUR 114 million) from July to September. In addition, key subsidiaries such as the Minh Phu Loc An and Minh Phu Kien Giang farming units and the Minh Phu Ninh Thuan seed production firm performed poorly in the quarter.
Fimex (Sao Ta) posted a net profit of VND 89 billion (USD 3.7 million, EUR 3.4 million) in the third quarter, an increase of 11 percent year over year, thanks to strong performances from its subsidiary Khang An and an exemption in corporate income tax. Following the release of its third-quarter results, though, Fimex reduced its sales value target for the year by 17 percent to VND 4.9 trillion (USD 201.1 million, EUR 185.4 million) and its net profit target by 25 percent to VND 278 billion (USD 11.5 million, EUR 10.6 million). It said it had made the adjustment to reflect new challenges facing the company.
Bac Lieu Fisheries Joint Stock Company, a smaller shrimp exporter, reported a net profit of VND 10.2 billion (USD 412,000, EUR 381,000) in the third quarter – an improvement from the loss of VND 10.4 billion (USD 430,000, EUR 396,000) it posted a year earlier – due to cost-reduction measures and increased sales of potatoes.
VASEP said Vietnam’s seafood exports have been generally recovering in recent months, but its forecast for the next year remains uncertain. The trade group anticipates the country’s seafood exports will reach USD 2.4 billion (EUR 2.2 billion) in the fourth quarter, remaining almost unchanged from the same period a year ago. The extent of the recovery in sales in the quarter, however, will largely depend on demand within the U.S. and Chinese markets, according to VASEP. While orders from these two markets have been gradually increasing, export prices remain lower than last year, the trade group said.
Photo courtesy of Cuu Long Fish Joint Stock Company
