Welcome   Sponsored By
Subscribe | Register | Advertise | Newsletter | About us | Contact us
If you would like to send us an article, contact Margaret Stacey
   


Image: Suning / FIS

China's opening will benefit Vietnamese pangasius exporters

  (VIET NAM, 2/2/2023)

According to SSI Securities Corporation (SSI), inflation in 2023 continues to be a challenge for Vietnam's seafood industry. In that context, the pangasius industry is expected to prosper when the largest export market, China, has reopened.

Photo: Vasep

Profits of seafood enterprises will decelerate in the fourth quarter of 2022

According to SSI's report, despite many fluctuations between the first and second half of the year, Vietnam's seafood industry had a remarkable year. Vietnam's seafood export turnover in the first 11 months of 2022  reached 10.2 billion USD (up 28% over the same period).

In which, shrimp and pangasius exports reached 4 billion USD (up 14% over the same period) and 2.3 billion USD (up 64%), mainly thanks to the impressive growth of 38% in the first 9 months of 2022. This is a record high result, compared to the CAGR (compound annual growth rate) of seafood exports of 4% during 2011-2021.

Vasep report on potential markets for panga exports in 2023. In its original language with English subtitles.

In the first half of the year, both shrimp and pangasius exports grew thanks to high demand and rising prices. In the second half of the year, high inflation in major economies affected consumer sentiment, while inventories remained high. As a result, export volumes rapidly decelerated in the second half of 2022.

Image: Vasep -->

Listed companies have posted positive business results throughout the first 9 months of 2022, although the quarterly growth rate is slowing down. Most companies benefit from the depreciation of VND against USD with revenue recorded in USD.

Only companies with dollar-denominated debt have recorded unrealized exchange rate losses, but their dollar balances are relatively low. With demand falling, average selling price and unadjusted aqua feed costs (up 33% y/y), SSI experts forecast companies will record a drop in profit in the fourth quarter of 2022. 

2023 Outlook

According to the report, in 2023 inflation will continue to be a challenge for the seafood industry in the context of slow turnover of remaining inventories. Even coming events like the Super Bowl and Easter in the US can't reduce inventories that are already running high. The inventory forecast will be fully processed in the third quarter of 2023, with orders beginning to be received at this point.

Photo: Vasep

The average selling price is likely to decrease by 20-30% year-on-year in 2023 and the cost of aqua feed will also decrease. With a slow increase in orders, there will be no shortage of both raw shrimp and pangasius. Thereby, it is forecast that the price of raw materials for shrimp and pangasius will decrease slightly until the end of the first half of 2023.

The fishery's gross margin will decline in 2023. With interest rates expected to remain high for the full year, rising financing costs will continue to weigh on net margins, especially for companies with high leverage, such as IDI Corporation. Overall, SSI experts forecast companies to post negative profit growth in 2023.

Image: m.yunizaiqi.com

In the context of consumer reduction in consumption, the report suggests that pangasius sales will be less affected than shrimp sales. The reopening of China is believed to be the “catalyst” for the seafood industry in 2023. Although more time is needed to assess the quantitative impact of China's reopening on pangasius exports, the SSI experts believe that it will benefit the sector's revenue as China is Vietnam's largest pangasius export market.

However, China is a price sensitive market. The average selling price to this market is always about 40% lower than the average selling price to the US market. The report suggested that sales from China would partially offset the decline in pangasius sales from the US and EU markets, but not enough to boost companies to recover profits in the first half of 2023. This is likely due to the high comparative returns in 2022.

Experts remain concerned about the level of uncertainty surrounding China's reopening policies. The profits of pangasius enterprises are expected to decrease in 2023.

By Thuy Linh / Vasep 

editorial@seafood.media
www.seafood.media


Information of the company:
Address: 218 Road No.6, Zone A, An Phu An Khanh New Urban Area, District 2
City: Ho Chi Minh
State/ZIP: ( )
Country: Viet Nam
Phone: +84 28 6281 0430
Fax: +84 28 6281 0437
E-Mail: vasephcmcity@vasep.com.vn
More about:


Location:

View Larger Map



 Print


Click to know how to advertise in FIS
MORE ARTICLES
Natural Shrimp, Inc. Completes Successful Trial in Japan
Seafood Expo Global/Seafood Processing Global will break records in April with its largest edition
J-HOTATE Association Will be Exhibiting at Seafood Expo Global Presenting Premium and Fresh Japanese Scallops
BioVaxys and Spayvac-for-Wildlife Launch Field Trial for Immunocontraception in the Commercial Aquaculture Industry
BLUU Seafood Opens New Headquarters in Hamburg with Europe's First Pilot Plant for Cultivated Fish
Holland America Line Becomes First Global Cruise Line to Receive International Seafood Certifications
Trout Fed with Algae and Insects
Bumble Bee Seafoods Announces New CEO
Wild Tide Seafoods Delivers from the Harbor to Your Home
Blue Star Foods Starts its Soft-Shell Crab Season
New, Innovative Heat-and-Eat Offerings from Aquamar
Latest Tech Installed at Mowi’s Scottish Salmon Processing Plant
Thai Union Launches New Initiative to Decarbonize Thai Shrimp Supply Chain
Kroger Debuts New Our Brands Seafood Items
Aruna Indonesia Announces Partnership with North Coast Seafoods to Vertically Integrate Blue Swimming Crabmeat from “Trap to Table”
DS Smith Unveils DryPack Solution in U.S. Market to Help Seafood Processors Phase out Plastic Container
Pacific Seafood Releases Seventh Annual Corporate Social Responsibility Report “Beneath the Surface”
Sustainable Thermal Packaging Solutions that Saves you Money
Duravant Acquires German Equipment Manufacturer Henneken
Antarctica Advisors Acts as Exclusive Investment Banking Advisor to CentSea in the Sale to Captain Fresh
More Articles...

Lenguaje
FEATURED EVENTS
  
TOP STORIES
Under the nose of the Minister of Production: irregular entry of a Chinese squid jigger occurs with serious questions
Peru Last night, April 18, a hundred artisanal fishermen from the Port of Chimbote, in the Ancash Region, had to stop their fishing tasks because an immense Chinese fishing boat appeared in front of them t...
Indian Ocean squid price index: Flying squid (Ommastrephes bartramii)
China In order to continuously enhance the ability to control squid resources and price influence, and conduct more accurate resource assessment and forecasting, the China Ocean Fisheries Association&n...
MSC certification of Dutch trawl fleet partly suspended
Netherlands The Marine Stewardship Council (MSC) announces that the certificates for sole, beam trawling and flyshoot and otter trawl fishing in the North Sea will be suspended with effect from April 25, 2024. In...
Statistics │ Exports │ Mackerel │ Japan, China, Netherlands, Vietnam │ 2022-24
Norway Source: FIS by SeafoodMediaGroup  | Click to enlarge it    editorial@seafood.media www.seafood.media...
 

Maruha Nichiro Corporation
Nichirei Corporation - Headquarters
Pesquera El Golfo S.A.
Ventisqueros - Productos del Mar Ventisqueros S.A
Wärtsilä Corporation - Wartsila Group Headquarters
ITOCHU Corporation - Headquarters
BAADER - Nordischer Maschinenbau Rud. Baader GmbH+Co.KG (Head Office)
Inmarsat plc - Global Headquarters
Marks & Spencer
Tesco PLC (Supermarket) - Headquarters
Sea Harvest Corporation (PTY) Ltd. - Group Headquarters
I&J - Irvin & Johnson Holding Company (Pty) Ltd.
AquaChile S.A. - Group Headquarters
Pesquera San Jose S.A.
Nutreco N.V. - Head Office
CNFC China National Fisheries Corporation - Group Headquarters
W. van der Zwan & Zn. B.V.
SMMI - Sunderland Marine Mutual Insurance Co., Ltd. - Headquarters
Icicle Seafoods, Inc
Starkist Seafood Co. - Headquearters
Trident Seafoods Corp.
American Seafoods Group LLC - Head Office
Marel - Group Headquarters
SalMar ASA - Group Headquarters
Sajo Industries Co., Ltd
Hansung Enterprise Co.,Ltd.
BIM - Irish Sea Fisheries Board (An Bord Iascaigh Mhara)
CEFAS - Centre for Environment, Fisheries & Aquaculture Science
COPEINCA ASA - Corporacion Pesquera Inca S.A.C.
Chun Cheng Fishery Enterprise Pte Ltd.
VASEP - Vietnam Association of Seafood Exporters & Producers
Gomes da Costa
Furuno Electric Co., Ltd. (Headquarters)
NISSUI - Nippon Suisan Kaisha, Ltd. - Group Headquarters
FAO - Food and Agriculture Organization - Fisheries and Aquaculture Department (Headquarter)
Hagoromo Foods Co., Ltd.
Koden Electronics Co., Ltd. (Headquarters)
A.P. Møller - Maersk A/S - Headquarters
BVQI - Bureau Veritas Quality International (Head Office)
UPS - United Parcel Service, Inc. - Headquarters
Brim ehf (formerly HB Grandi Ltd) - Headquarters
Hamburg Süd Group - (Headquearters)
Armadora Pereira S.A. - Grupo Pereira Headquarters
Costa Meeresspezialitäten GmbH & Co. KG
NOAA - National Oceanic and Atmospheric Administration (Headquarters)
Mowi ASA (formerly Marine Harvest ASA) - Headquarters
Marubeni Europe Plc -UK-
Findus Ltd
Icom Inc. (Headquarter)
WWF Centroamerica
Oceana Group Limited
The David and Lucile Packard Foundation
Ajinomoto Co., Inc. - Headquarters
Friosur S.A. - Headquarters
Cargill, Incorporated - Global Headquarters
Benihana Inc.
Leardini Pescados Ltda
CJ Corporation  - Group Headquarters
Greenpeace International - The Netherlands | Headquarters
David Suzuki Foundation
Fisheries and Oceans Canada -Communications Branch-
Mitsui & Co.,Ltd - Headquarters
NOREBO Group (former Ocean Trawlers Group)
Natori Co., Ltd.
Carrefour Supermarket - Headquarters
FedEx Corporation - Headquarters
Cooke Inc. - Group Headquarters
AKBM - Aker BioMarine ASA
Seafood Choices Alliance -Headquarter-
Austevoll Seafood ASA
Walmart | Wal-Mart Stores, Inc. (Supermarket) - Headquarters
New Japan Radio Co.Ltd (JRC) -Head Office-
Gulfstream JSC
Marine Stewardship Council - MSC Worldwide Headquarters
Royal Dutch Shell plc (Headquarter)
Genki Sushi Co.,Ltd -Headquarter-
Iceland Pelagic ehf
AXA Assistance Argentina S.A.
Caterpillar Inc. - Headquarters
Tiger Brands Limited
SeaChoice
National Geographic Society
AmazonFresh, LLC - AmazonFresh

Copyright 1995 - 2024 Seafood Media Group Ltd.| All Rights Reserved.   DISCLAIMER