Vietnam’s top pangasius company, Vinh Hoan, saw its year-on-year export value increase in September as sales to the Europe and China recovered, the company said in its September update.
Vinh Hoan exported pangasius worth VND 554 billion (USD 23.8 million, EUR 20 million) in the month, up 2.6 percent year-on-year.
The United States was the largest buyer in September, with sales value of VND 191 billion (USD 8.2 million, EUR 7 million), down 6.4 percent from a year ago.
However, sales to China and Europe have helped offset the downturn from the U.S. market, which was affected by “a decline in unit price."
China, the largest buyer of pangasius from Vietnam last year, became the second-biggest destination in September, importing the fish worth VND 137 billion (USD 5.9 million, EUR 5 million), soaring 29.2 percent year-on-year.
Vinh Hoan’s exports to Europe in the month also rose 6.3 percent year-on-year to VND 68 billion (USD 2.9 million, EUR 2.5 million). Exports from Vietnam to the European Union, including seafood, have benefited from the European Union-Vietnam Free Trade Agreement (EVFTA) which took effect 1 August.
Compared to August, however, Vinh Hoan’s export value in September shrank 10.2 percent, with the decline seen in both the U.S. and European markets, which the company said “reflected the fragile nature of the global economy."
In contrast, the recovery of demand along with lower inventory in China have contributed to boost the sales growth there.
In September, Vinh Hoan’s pangasius products stood at VND 347 billion (USD 14.9 million, EUR 12.6 million), down 13 percent year-on-year and falling 15.4 percent from August. Its by-products in the month jumped 222.7 percent year-on-year to VND 142 billion (USD 6.1 million, EUR 5.2 million), 25.7 percent higher than August. The company’s wellness products fell 26.3 percent year-on-year to VND 28 billion (USD 1.2 million, EUR 1 million), down 48.1 percent month-on-month.
A representative from Vinh Hoan’s investor relations department told SeafoodSource on 21 October that the company earlier this month put into operation another production line to produce gelatin in its factory in Mekong Delta. With the addition of the new line, Vinh Hoan is now capable of producing 3,500 metric tons (MT) of gelatin per year. The new line will contribute to the company’s sales value and profit next year, he said.
This month Vinh Hoan also commissioned a research and development center with a focus on developing new collagen products.
Photo courtesy of Vinh Hoan
