Vietnam’s top pangasius exporter, Vinh Hoan, saw its sales value of pangasius decline in all markets in December largely because of shipping troubles and the pandemic impacts, the company said in its update for the month.
Vinh Hoan exported pangasius and other products worth VND 542 billion (USD 23.5 million, EUR 19.4 million) in the month, falling 33 percent year-on-year.
There has been a shortage of empty containers for exporters to load goods, which has caused significant impacts to the trade flow from Asia to other global markets recently.
“Sharply reduced maritime transport flow, slow pace of economic recovery and the emergence of a new variant of SARS-CoV-2 are the main reasons for the significant decrease,” the company said.
The U.S. remained the biggest buyer of pangasius from Vinh Hoan in December, with sales value of VND 136 billion (USD 5.9 million, EUR 4.9 million), a decline of 52 percent from the same month in 2019.
“Uncertain trade position in the U.S. was the primary reason for the decline of the main product, i.e. pangasius products,” Vinh Hoan said, without clarifying.
That uncertainty could be compounded by a preliminary determination posted on the U.S. Federal Register on 28 December. In the posting, the Department of Commerce announced that Vinh Hoan and Navico would face a weighted average dumping margin of USD 0.09 (EUR 0.07) per kilogram from 1 August, 2018 through 31 July, 2019.
KB Securities Vietnam said on 31 December that the final determination, which is expected to be announced in April 2021, may change as in the previous reviews. However, it will create more risks for Vinh Hoan if the DOC applies the rate though the duty accounts for just 2.6 percent of Vinh Hoan’s selling price of USD 3.50 (EUR 2.90) per kilogram in the U.S. market.
“After years of enjoying the zero tax, the preliminary antidumping duty for Vinh Hoan comes as a surprise, which shows that the U.S. is targeting top seafood exporters of Vietnam,” the securities company said.
Vinh Hoan's exports to other countries also fell in December. China was the second destination in value with VND 140 billion (USD 6.1 million, EUR 5 million) in the month, 35 percent lower year-on-year. Vinh Hoan’s sales to the Europe in December fell 11 percent from a year ago to VND 90 billion (USD 3.9 million, EUR 3.2 million).
Compared to the previous month, the company’s export value in December went down 18 percent.
Vinh Hoan earned VND 326 billion (USD 14.1 million, EUR 11.6 million) from the exports of pangasius products, down 41 percent year-on-year, and diving 31 percent from November. Its by-products in the month, however, increased to VND 151 billion (USD 6.5 million, EUR 5.4 million), up 42 percent year-on-year and 32 percent month-on-month. The company’s wellness products exports were worth VND 51 billion (USD 2.2 million, EUR 1.8 million), down 31 percent year-on-year but rising 22 percent from November.
Photo courtesy of Vinh Hoan
