Hanoi (VNS/VNA) - Large seafood enterprises have set higher revenue andprofit targets this year thanks to positive growth prospects of the seafoodexport market, especially the US and EU.

Risingdemand 

Accordingto the Vietnam Association of Seafood Exporters and Producers (VASEP), seafoodexports have rebounded with the figure for the first five months of 2021reaching 3.27 billion USD, up 14 percent over the same period last year.

Shrimpexports in May totalled 375 million USD, up 25 percent year-on-year, while thatin the first five months reached 1.34 billion USD, up 14 percent. Similarly,pangasius brought in 134 million USD in May, up 26 percent and that for fivemonths reached 623 million USD, up 12 percent. Other seafood products such astuna, squid and octopus also witnessed growth.

Vietnameseseafood has the opportunity to increase its market share in the US market asIndia is heavily affected by the COVID-19 pandemic and Chinese enterprisesreduce exports due to the US-China trade war.

Vietnameseshrimp is currently in the most consumed among Vietnam’s seafood exportproducts to the US market, accounting for 21 percent of seafood exports. The USopened 50 states from May 20 after a long lockdown due to COVID-19, which was afactor promoting imports.

Pangasiusexports to the US are also on the rise in the first five months of 2021,reaching 135 million USD, an increase of 57 percent compared to the same periodlast year.

Asfor tuna, the US is now the largest import markets of Vietnam's tuna,accounting for 42 percent of the proportion.

Besidesthe US market, businesses expect the EU to be the growth engine this year asthe demand for shrimp and seafood products increases in the context of theCOVID-19 pandemic being gradually controlled.

EUimporters are now more interested in Vietnamese seafood suppliers thanks totariff cuts from the EU-Vietnam Free Trade Agreement and stable source of rawmaterials.

Bythe end of May 2021, Vietnam's seafood exports to the EU reached 380 million USD,up 15 percent, in which shrimp accounted for nearly 199 million USD, an increaseof 22 percent over the same period last year.

Higherrevenue

MinhPhu Seafood Joint Stock Company (MPC), Vietnam's biggest shrimp company,targets revenue and post-tax profit of 15.77 trillion VND (683.4 million USD)and 1.1 trillion VND this year, up 10 percent and 62 percent, respectivelycompared to last year.

LeVan Quang, Chairman of the MPC's Board of Directors, said that in 2021, thecompany will maintain export markets of the US, the EU, Japan and expand to newmarkets, developing a high-tech industrial shrimp farming complex. The MPC'sgoal by 2045 is to capture 25 percent of the world shrimp market.

NamViet Seafood Joint Stock Company (ANV) plans to earn 4.5 trillion VND inrevenue and 360 billion VND in profit after tax this year, up 30.8 percent and80 percent, respectively compared to 2020. The company will boost exports toChina, the EU, the US and Russia.

VinhHoan Joint Stock Company (VHC) targets to achieve revenue of 8.6 trillion VNDthis year, up 22 percent, but the profit target is forecast at 700 billion VND,down 3 percent compared to 2020. The company's total revenue in the first fourmonths of 2021 increased by 61 percent over the same period last year.

VHC’spangasius products increased by 54 percent. The company's export value grew inmost markets, China by 246 percent, the US 130 percent, Europe 3 percent, otherregions 12 percent.

Thisyear, VHC plans to invest 1.3 trillion VND, of which 700 billion VND will be tobuild an animal feed factory, a hatchery and a new farming area, 200 billion VNDto renovate factories and 400 billion VND for other investments.

Overcomechallenges

Accordingto the MPC, in the first quarter of 2021, due to the impact of the COVID-19pandemic, the prices of some raw materials, inputs and essential services forproduction and business all increased, especially cargo ship fees rising over30 percent over the same period in 2020, affecting the company's profit, down56 percent.

Thefirst quarter has not yet entered the shrimp harvest season, thus the supply isscarce, causing the price of raw shrimp to increase, leading to the rise ofcosts.

AtVHC, increased costs caused the profit in the first quarter of 2021 to decreaseby more than 13 percent compared to the same period last year, to 131billion VND. Selling expenses rose mainly due to increased freight costs.

ACBSecurities Company said that the inventory of raw pangasius in Vietnam isdecreasing, while the demand for fish in the world recovers, so the price ofraw pangasius may increase.

Accordingto CSI Securities, seafood exporters are still facing challenges from high seatransportation costs due to a shortage of containers, which hinders exports tothe US and EU. Meanwhile, some markets have adopted non-tariff barriers tolimit and tighten controls on imported goods./.