Data on revenue and consumption in May of some seafood enterprises such as Vinh Hoan Joint Stock Company and Sao Ta Food Joint Stock Company shows the difficulties that this industry is facing.
In May 2023, Vinh Hoan Joint Stock Company recorded a revenue of 954 billion VND, down 37% compared to the same period in 2022. Accumulated in the first 05 months of this year, the company achieved 4,074 billion VND in revenue, down 36.7% over the same period last year. In particular, the largest contributor to the company’s revenue is catfish with 2,411 billion VND, equal to 55% compared to 4,347 billion VND in the same period last year.
In terms of market, the US continues to be the largest export market, helping Vinh Hoan Company earn 1,388 billion VND in total revenue, down 59.2% over the same period in 2022. While revenue from the Chinese market decreased by 18.75% (reaching 429 billion VND), revenue from Europe increased by 2.6% (reaching 785 billion VND). In the domestic market, revenue was 988 billion VND, down 17.5%.
In the first 05 months of this year, Vietnam’s seafood exports reached about 3.5 billion USD, down nearly 30% compared to the same period last year.
The production and business data in May 2023 of Sao Ta Food Joint Stock Company also showed difficulties in shrimp exports. Specifically, this business recorded 10.9 million USD in revenue in May 2023, down 44% compared to May 2022 and 22% compared to April 2023. In particular, the output of finished shrimp reached 2,761 tons, up 38% over the same period last year. However, consumption only reached 948 tons, down 61%. The output of finished agricultural products reached 123 tons, down 61% compared to May 2022 and consumption reached 115 tons, down 19%.
According to data in the first 05 months of this year, Sao Ta Food Company reached 68.1 million USD in revenue, down 29.8% over the same period last year; shrimp consumption reached 5,507 tons, down 30%.
Some other enterprises in the industry announced negative results in the first quarter of 2023. For example, Minh Phu Seafood Joint Stock Company reported a loss of nearly 100 billion VND. This is the first loss of this business since 2017.
According to statistics from the Vietnam Association of Seafood Exporters and Producers (VASEP), in the first 05 months of this year, Vietnam’s seafood exports reached about 3.5 billion USD. The figure is down nearly 30% compared to the same period last year. All seafood export products decreased by about 13 – 34%. In particular, shrimp products decreased the most (down 34%), reaching 1.2 billion USD and catfish decreased by 30%, reaching 0.841 billion USD. Major export markets such as the US and China both recorded record declines of 50% and 26%, respectively.
Seafood exports are facing difficulties.
VASEP believed that the difficulties of the seafood industry come from the economic downturn, global inflation, domestic difficulties, and great competitive pressure from Ecuador, India, Indonesia, etc.
Regarding the prospects of the seafood industry, VNDirect Securities Company forecasts that Vietnam’s seafood exports to the US will increase by 40-50% in the second half of the year compared to the first half of this year. It is likely thanks to “cooling” inflation, declining inventory, and year-end demand. In the EU market, it is expected that demand for Vietnam’s catfish will be stable in the second half of the year compared to the first half. The reason is that inflation in the EU remains high while the supply of other white-meat fish such as pollock is affected by tensions between Russia and Ukraine.
Due to the unpredictable macroeconomic picture of China and fierce competition from other countries, VNDirect forecasts that Vietnam’s seafood exports to China in the second half of 2023 will not grow strongly compared to the first half of the year./.