July 31, 2012

Vietnamese seafood firms post profits loss in Q2

Vietnam's majority listed seafood companies seen profits down or incurred losses in the second quarter of 2012.

Vinh Hoan Corporation (VHC), among Vietnam's leading exporters, earned a net profit of VND55.25 billion (US$2.63 million) in second quarter, excluding those of its affiliates, down 55.65% on year, though its revenues rose slightly 3.63% to VND849.43 billion (US$41 million).

Hung Vuong Corporation (HVG), the country's leading pangasius exporter, made a consolidated net profit of VND60.74 billion (US$2.9 million) in the period, dropping 52.9% on year, while its revenues slid 9.05% to VND1.87 trillion (US$90 million).

Small-sized firmed did not escape from the gloomy situation. Angiang Fisheries Import Export JSC (AGF) and Cuu Long Fish JSC (ACL) saw profits fall 51.01% and 72.21% on year to VND10.87 billion (US$522,000) and VND14.22 billion (US$682,000), respectively. Bentre Aqua-product Import and Export JSC (ABT) earned a profit of VND26.67 billion (US$1.3 million), down 1.62%.

Sao Ta Foods JSC (FMC) even incurred a loss of VND5.01 billion (US$240,000) in second quarter, marking the second consecutive loss-ridden quarter, leading to a six-month loss of VND15.47 billion (US$742,000).

Falling demand from traditional markets, rejection from importing markets due to high residue of antibiotics, and high production costs are among the outstanding factors attributable to the poor performance of local listed seafood firms. Rising sale costs and unfavourable foreign exchange rates were also blamed for their profit fall.

Vietnam Directorate of Fisheries has set out a plan under which the country targets to earn US$11 billion from seafood export by 2020, contributing 2.8-3% to the national GDP.