May 25, 2011

Vietnam's Hung Vuong Corp to invest US$12.1 million in shrimp breeding

Hung Vuong Corp (HVG) will work with other partners to invest VND250 billion (US$12.1 million) in developing shrimp cultivation area of Bentre Forestry and Aquaproduct Import Export JSC (FBT).

           
               
The plan has been given after HVG completed an acquisition of 2.8 million shares equal to an 18.67% stake of FBT earlier this month.

HVG's Chairman cum General Director, Duong Ngoc Minh, expected the project would bring in double return in three months.

In 2011, the seafood producer targets a pretax profit of VND450 billion (US$21.8 million), rising 80% on year, on revenues of VND6 trillion (US$2.9 billion), and a dividend payout equivalent to VND3,000 (US$0.15) per share at least.

The company plans to boost seafood exports to the U.S., Mexico, the EU and new markets such as Brazil, aiming to have turnover of US$200 million in 2011, surging 669% on year, thanks to rising export prices of tra fish in the global market.

This year HVG will not invest more into real estate projects, given unfavourable conditions of the property market.

In the first quarter of 2011, it made a net profit of VND115 billion (US$5.61 million) on revenues of VND1.77 trillion (US$85 million).