Vinh Hoan reports lower sales to China, big boost in Europe
Cao Lanh City, Vietnam-based pangasius firm Vinh Hoan reported a year-on-year decline in the value of its exports in August, as its sales to China remain depressed.
Vinh Hoan exported pangasius worth VND 617 billion (USD 26.5 million, EUR 22.4 million) in the month, 5.1 percent lower year-on-year, the company said in its August update.
The United States was the largest destination for pangasius from Vinh Hoan in August, with sales value of VND 208 billion (USD 8.9 million, EUR 7.6 million), unchanged from the same month last year.
China, which was the largest buyer of pangasius from Vietnam in 2019, dropped to become the company’s third-biggest market in August, importing the fish worth VND 114 billion (USD 4.9 million, EUR 4 million), down 25.5 percent year-on-year. The decline of sales to this important market was “due to higher inventory level in the value chain,” the company said.
However, Vinh Hoan’s exports to Europe in the month surged 39.3 percent year-on-year to VND 117 billion (USD 5 million, EUR 4.3 million) as the exports “continued to be benefited by modern retail.” Exports from Vietnam, including seafood, also got a boost from the European Union-Vietnam Free Trade Agreement (EVFTA), which took effect from 1 August.
In August, sales of the company’s pangasius products fell 8.9 percent to VND 410 billion (USD 17.6 million, EUR 15 million). Sales of its byproducts rose to VND 113 billion (USD 4.9 million, EUR 4 million), 16.5 percent higher than August 2019, while sales of its wellness products dropped 86.2 percent year-on-year to VND 54 billion (USD 2.3 million, EUR 2 million).
In comparison to July, Vinh Hoan’s total exports fell 1.9 percent in value in August, due mainly to a downturn in sales to the U.S. Its pangasius sales to the U.S. in the month dropped 17.1 percent month-on-month as “trading condition remained unstable due to market dynamics.” Compared to its July figures, Vinh Hoan reported its sales in Europe and China in August rose 4.5 percent and 10.7 percent in value, respectively, as “modern retail and foodservice recover from disruptions” caused by the COVID-19 pandemic.
Photo courtesy of Vinh Hoan