After two months of year-over-year growth in sales, Vinh Hoan – Vietnam’s top pangasius exporter – saw lower totals in November.
The company blamed lower sales to China and the United States for the drop, in its November update.
Vinh Hoan exported pangasius and other products worth VND 660 billion (USD 28.5 million, EUR 23.4 million) in the month, a drop of 6 percent year-on-year, as the company encountered more public health challenges during the pandemic. Compared to October, the company’s export value in November dropped 10 percent.
The U.S. remained the biggest buyer of pangasius from Vinh Hoan in November, with sales value of VND 250 billion (USD 10.8 million, EUR 8.9 million), falling 8 percent from the same month in 2019. The value of exports from China shrank 20 percent year-on-year to VND 150 billion (USD 6.5 million, EUR 5.3 million) in the month.
However, Vinh Hoan was successful in boosting sales to Europe in the month, with VND 89 billion (USD 3.9 million, EUR 3.2 million) in sales, up 85 percent from a year earlier.
Month-on-month growth was recorded in the U.S. (up 3 percent) and Europe (rising 27 percent) but a decline of 28 percent in China came as a blow to Vinh Hoan’s efforts to increase sales ahead of the holiday season.
“In China, perceived risk of COVID-19 contamination in frozen seafood and resulting logistic disruptions have affected supply,” it said.
After air and ocean routes, frozen pangasius cargoes from Vietnam to China transported via land borders between the two countries are now subject to compulsory testing and disinfection measures to avoid any potential transmission of the coronavirus. The inspections have significantly delayed pangasius shipments into China and added more disinfection and storage fees for exporters from Vietnam.
In November, Vinh Hoan earned VND 475 billion (USD 20.5 million, EUR 16.8 million) from its exports of pangasius products, down 1 percent year-on-year and dropping 12 percent from October. Its byproducts in the month rose to VND 114 billion (USD 4.9 million, EUR 4 million), up 2 percent year-on-year and rising 11 percent month-on-month. The company’s wellness products exports were worth VND 42 billion (USD 1.8 million, EUR 1.5 million), down 10 percent year-on-year and falling 8 percent month-on-month.
Photo courtesy of Vinh Hoan
