November 7, 2011

Vietnamese seafood industry seen bullish this year

Vietnam's seafood sector expects a robust performance this year as most seafood processors reported hefty profits in January-September while export prices are set to stay high towards year-end.

Numerous listed companies have released their third quarter reports with both sales and profits sharply surging compared to the same period last year, sources said.

Mekong Fisheries Joint Stock Co reported an accumulated net profit of VND51 billion (US$2.4 million), up 43% on-year while Vinh Hoan Holding Joint Stock Co said it obtained net profit of over VND77 billion (US$3.7 million) in the third quarter, increasing 33% on-year.

Sao Ta Food Joint Stock Co, a shrimp export specialist, collected a net profit of VND9.2 billion (US$0.4 million) in the first nine months of the year, up 54% from the same period last year.

Customs figures show that Vietnam earned revenues from seafood exports increased 25% on-year, thanks to rising export prices and stable material supply at home.

Luong Hoang Manh, chairman of Mekong Fisheries, affirmed it was impossible for export prices to drop for the rest of the year due to material shortages. He suggested enterprises should sign short-term contracts with a moderate volume to ensure delivery time as well as profits.

The Vietnam Association of Seafood Exporters and Producers (VASEP) forecast that larger orders of pangasius fish and shrimp of high value would arrive in the next three months.

Truong Dinh Hoe, general secretary of VASEP said that pangasius fish exports will likely reach US$1.6 billion in value, exceeding US$1.5 billion targeted earlier.

In the January-September period, Vietnam's firms earned US$1.7 billion from shrimp exports, up 18.5% on-year.

It is likely that Vietnam's shrimp export will surpass the $2.1 billion of 2010, Hoe added.