Businesses announced their much higher profit in the first six months, implying to achieve the plan of the year. In the first half of 2022, pangasius exports, the billions USD worth sector, are making breakthrough after two years of slowing down due to the Covid-19 pandemic.
According to VASEP, pangasius exports reached USD 1.4 billion in the first six months of the year, up 82% from the same period last year. The first half year result reached USD 1.6 billion, achieving 87% of the plan agreed by the Directorate of Fisheries. With such a growth rate, VASEP believes that pangasius exports can reach USD 2.5-2.6 billion, up 56-65% from 2021.
According to the Deputy General Secretary of VASEP Nguyễn Hoài Nam, the global demand is blooming after the Covid-19 pandemic and pangasius enterprises have had abundant stockpiles since 2021. Moreover, the inflation and strike between Russia and Ukraine are boosting the increase in sales of Vietnamese pangasius to the EU, the US and UK that are in an enormous demand for white meat fish after the sanction imposed on Russia.
The farming area stays at 3,105 ha and the output of Vietnamese pangasius is 771,430 tons. The sharp increase in sales of pangasius in the first half of the year was attributed to stockpiles in advance, according to Vice Chairman of Vietnam Pangasius Association (VINAPA) Võ Hùng Dũng.
Some pangasius businesses such as Vinh Hoan, IDI Corp, and Nam Viet have remained abundant stockpiles for exportation this year.
As of June 30, Vinh Hoan Corporation’s stockpiles have been valued at VND 2,905 billion, up 62% from earlier this year. Nam Viet’s stockpiles have been valued at VND 1,962 billion, up 10% from earlier this year.
Chairman of the Board of Directors of IDI Lê Thanh Thuấn shared that IDI stored 24,000 tons of finished pangasius products in 2021 with raw material being bought at 17,000-18,000 dong/kg, satisfying the market demand after the pandemic.
In late April, IDI was full of orders for 2022. When the price of raw material is pushed up to 32,000 dong/kg, the corporation can earn hundreds of billion dong profit from the difference.
This is also a basis for IDI to set a target of net revenue of VND 8,300 billion, up 45% from 2021 and profit after tax of VND 900 billion, up 6.3 times as much as the same period last year.
Raking the first position among pangasius businesses, Vinh Hoan Corp reports their net revenue of VND 7,494 billion, up 81% from the same period of 2021, profit after tax of VND 1,341 billion, up 241% in the first six months of 2022. Thus, Vinh Hoan achieved 58% of the plan’s revenue and 84% of the plan’s profit after tax just within six months.
Nam Viet has just reported their first half-year revenue of VND 2,513 billion, up 41% from the same period last year and profit after tax of USD 447 billion, fivefold increase as compared to the same period last year. Nam Viet has fulfilled 49% of the plan’s revenue and 51% of the plan’s profit of the year.
According to experts, raw materials are enough and orders are bulk for businesses to fulfill in the last six months of the year. However, pangasius businesses are bearing such huge production costs that profit can be affected. Freight charge is an example. Shipping charges of international routes have increased fourfold or five fold since 2020. The container shipping cost reduced lightly in June 2022, but stays high in general. A 40 feet container going from the East Coast of the US (Florida) is charged 16,400 USD, loading from factory to harbor excluded.