Tra fish processed for exports (Photo: VNA)Hanoi (VNA) – Seafood shares advanced in the first half of the year asthe freshly signed EU-Vietnam Free Trade Agreement (EVFTA) and theComprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)have positive impacts on the business results of seafood exporters, accordingto insiders.
High expectations for benefits from the trade deals helped seafood stocks shootup during the January-June period.
The strongest surge was recorded in the value of Camimex Group Joint StockCompany’s shares coded CMX. They were sold at 25,900 VND (1.12 USD) per shareat the end of the trading session on July 24, up 75 percent as compared to thebeginning of the year.
Many other shares in the industry like SJ1, SEA, AAM and ACL had their pricesincrease from 21-50 percent.
Particularly, Mekong Fisheries Joint Stock Company recently announced itachieved 103.7 billion VND in revenue, and 8.5 billion VND in pre-tax profits,accounting for 47 percent and 106.3 percent of the yearly plan, respectively. Theprice of its shares, coded AAM, also surged 12 percent since the year-beginning.
Meanwhile, SJ1 of Hung Hau Agricultural Corporation rose 46 percent to 18,300VND at the closing session on July 24.
According to the Vietnam Association of Seafood Exporters and Producers(VASEP), the EVFTA and CPTPP will serve as a boon for the seafood sector tothrive in the coming time.
With 11 members, the CPTPP will help Vietnamese seafood further reach out tothe markets of Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, NewZealand, Peru and Singapore as taxes levied on the products are reduced tozero.
The sector is expected to win big from the EVFTA when nearly 50 percent of thetax lines currently imposed on Vietnamese goods at up to 22 percent will be cutto zero percent.
Securities analysts said besides benefits in taxes and competitive capacity,the pacts will help Vietnamese exporters expand their markets as well as betterproduction technologies and product quality. The moves are hoped to createimpetus for seafood shares in the coming time.
However, local firms must get ready for playground of large fish or they willlose the game. Experts suggest they channel focus on improving products’ origintraceability, as well as ensuring labour and environment standards, and foodsafety and hygiene to meet stern requirements of the foreign markets.-VNA
VNA
