Many pangasius businesses set huge growth targets

DNHN - Due to pangasius prices rising through the end of 2022. A company called Cuu Long An Giang Seafood Import-Export Joint Stock Company recently filed a plan with its shareholders.

It said that net sales rose 20% and pre-tax profits rose four times. This year, Vinh Hoan Joint Stock Company, which is the industry leader, wants to make 13,000 billion VND in net sales and make 1500 billion VND in profit after taxes. That's an increase of 43.5 per cent and 35.6 per cent. This would be the company's biggest profit since its creation.

Vi Tam, General Director of Vinh Hoan Company, claimed factory capacity had reverted to pre-Covid-19 levels. Due to high vaccination rates at work, there is no chance that production will stop.

According to Mr Le Thanh Thuan, Chairman of Multinational Development and Investment Joint Stock Company (IDI), the company's projected net revenue of VND 8,300 billion is up 45 per cent from last year's and profit after tax of 900 billion is up 6.3 times.

IDI has now signed all export orders till the conclusion of the second quarter.

A lot of cheap pangasia (17,000–18,000 VND/kg) have also been planned for the market to come back, especially in Mexico and Brazil. IDI established a third processing unit with a capacity of 500 tons per day to satisfy demand.

Previously, IDI's two other factories, totalling 450 tons per day, were running at full capacity. While there are many good signs, most pangasius enterprises are concerned about future input material shortages.

The first factor is the rising cost of animal feed, which has pushed up the cost of growing fish. This year's crop plan has not been met by many pangasius farming families.

Due to the COVID-19 pandemic last year, most ponds are filled at a maintenance level with restricted feeding and few new farms. Drought and saltwater intrusion in the Mekong Delta damage pangasius production, and import and export activity.

Food, shipping, and gasoline costs have all soared recently.

In 2020, the price of oil alone increased by 30%. Raw pangasius will be scarce in Q2 2022, according to the Association of Seafood Exporters and Producers (VASEP). Lack of availability and increased demand pushes up the price of raw pangasius.

Raw pangasius has climbed 25% since the end of 2021, to about 32,000 VND/kg. Business flourished after 3 years of doom. With a 88 per cent rise over the same time in 2021, pangasius exports are predicted to reach 646 million USD by the first quarter of 2022, approximately 27 per cent of overall seafood export value.

Exports of pangasius to several key markets increased by triple digits.

Consider the US market. Pangasius exports totalled $94.6 million in the first two months of the year, rising 120% over the previous year.

China-Hong Kong Pangasius shipments climbed 240% in the first two months of the year to $86 million. The European pangasius exports are showing signs of resurgence. Pangasius exports are expected to double in the second quarter of 2022 over the same time in 2021.

 Hoài An