Processing tra fish for exports (Photo: VNA)Hanoi (VNS/VNA) - Multiple tra fish companies suffered losses due tofalling export prices and lower orders, focusing instead on the domestic marketamid the COVID-19 pandemic.
According to the Vietnam Association of Seafood Exporters and Producers (VASEP),the COVID-19 pandemic has strongly affected the world seafood industry, leadingto a reduction in consumption and causing orders to decrease by 35-50 percent.
Social distancing measures in April caused interruptions in internationaltrade. Enterprises lacked raw materials for processing, facing difficulties intransportation, payment and lacking capital to maintain operations.
VASEP said tra fish was among Vietnam’s most affected seafood products in thepandemic with export turnover dropping by over 31 percent in the first half.Declining new orders, high inventories and low export prices have made profitsof businesses plummet.
The Dong Thap province-based Vinh Hoan Company (VHC) announced thatsecond-quarter profit halved to 215 billion VND (9.2 million USD) compared tolast year.
Six-month profit also halved to nearly 368 billion VND, thus fulfilling 35 percentof the yearly target.
Vinh Hoan is researching investment strategies for raising profit via valuechains. Besides traditional tra fish export activities, the company aims toincrease sales of fish fat and fish meal by 20 percent this year, sales ofcollagen and gelatin products by 60 percent thanks to the new factory being putinto operation.
Nam Viet Corporation (ANV) saw second-quarter profit decrease by 79 percentyear-on-year to reach 32 billion VND, the lowest level since the beginning of2017.
In the first six months of this year, net revenue dropped by 14 percent whilepost-tax profit fell by nearly 79 percent to 75.5 billion VND.
Although the company forecasts profit this year to fall by 72 percent to 200billion VND, it only achieved 38 percent of the plan in the first half.
Export turnover fell by 52 percent to 399 billion VND in the second quarter.However, thanks to a focus on the domestic market, the company achieveddomestic net sales of 485 billion VND, up 113 percent compared to the sameperiod of 2019 and for the first time, domestic sales surpassed exports.
ANV is stepping up to exploit domestic demand by cooperating in consumingproducts in the distribution chain of VinEco under Masan Group.
I.D.I International Development & Investment Corporation (IDI) saw a dropof 61 percent in Q2 profit to 26 billion VND.
The company said that the COVID-19 pandemic had a heavy impact on theproduction and export of frozen fillets of tra fish as the market wasinterrupted and export prices plummeted.
Six-month profit dropped by 82 percent year-on-year to over 40 billion VND.
In 2020, the company wishes to expand export markets, at the same timepartnering with farming households to be able to self-supply 95 percent of rawmaterials.
The Cuu Long An Giang Seafood Import-Export Company (ACL) earned profit of only4 billion VND in the second quarter, down 93 percent compared to the sameperiod of 2019.
In six months, the company recorded a profit of over 5 billion VND, a decreaseof 95 percent and only achieved 7 percent of the yearly plan.
The Mekong Fisheries Joint Stock Company (AAM) suffered a loss of nearly 600million VND in the second quarter because export turnover decreased by halfcompared to the same period last year.
Six-month profit reached only 71 million VND and fell far short of the targetof 8 billion VND in profit set out for this year./.
VNA
