Pangasius businesses aim to achieve high revenue and profit in 2022

Many pangasius enterprises announced the plan to sharply increase revenue and profit this year at the general meeting of shareholders.

In particular, at the 2022 Annual General Meeting of Shareholders of the Multinational Development and Investment Joint Stock Company ('IDI'), the company expects this year's revenue to reach VND 8,300 billion and the following profit after tax of VND 900 billion, an increase of 45% in revenue and profit, 6.3 times higher than in 2021.

Specifically, it is expected that revenue from pangasius fillets will reach nearly VND 4,100 billion, a profit of VND 666 billion... If this profit target is achieved, IDI will record the highest business results in the company's history.

IDI set the above ambitious target mainly thanks to the optimistic signals from the pangasius market. Le Thanh Thuan, Chairman of the Board of Directors of IDI, said that the enterprise had signed export orders until the end of 2022.

Vinh Hoan Joint Stock Company, the largest pangasius exporter in Vietnam, has also set a target of reaching VND 13,000 billion in revenue and VND 1,500 billion in after-tax profit this year, up 43.6% in revenue and 36.5% in profit compared to 2021. In the first quarter of this year, Vinh Hoan's revenue increased by 80% and reached VND 3,225 billion, four times higher profit than last year.

Cuu Long Seafood Import-Export Joint Stock Company, in the document of the 2022 Annual General Meeting of Shareholders, submitted a business plan to achieve a revenue of VND 1,450 billion, up 20%; profit before tax reaching VND 200 billion, four times higher than the previous year.

Nam Viet Joint Stock Company (Navico) has also just announced its annual report for 2021 and business plan for 2022. Accordingly, this year, Navico sets a target of the revenue of VND 4,900 billion, up 40%; and VND 720 billion of the profit before tax, 4.8 times higher than 2021. Regarding pangasius exports and the company's existing markets, from August 2022, Nam Viet will export pangasius products to the US market.

The demand for pangasius is recovering in leading markets such as the US, China, and the EU and growing positively in potential markets in Latin America, Asia, etc. That is the reason for pangasius businesses' sharply increases in revenue and profit targets this year.

The Import and Export Department (Ministry of Industry and Trade) forecasts that Vietnam's pangasius exports in 2022 will continue to increase with the main markets including the US, China, and the EU. In particular, pangasius exports to the US market will continue to grow due to high market demand.

Pangasius exports to the EU market also have a positive signal when increasing enormously in the first months of 2022, after facing difficulties the last time. It is expected that the growth momentum will be maintained soon.

The Vietnam Agro-Forestry-Fisheries Quality Assurance Department ('Nafiqad') has now completed a dossier to request the US Food Safety and Inspection Service (FSIS) to recognize six more Vietnamese pangasius enterprises as eligible for export to this country.

Nafiqad is also applying for registration with FSIS to be allowed to export pangasius in processed form, a value-added product to the US because pangasius products to the US market are currently mainly in preliminary form. The above suggestions, if successful, will create more favorable conditions for the pangasius industry to export to the US in the upcoming time.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), from the beginning of the year to mid-February, the total value of pangasius exports to the EU reached US$ 20.2 million, up 40.2% over the same period of last year.

It is the most optimistic growth after a long stagnation or deep decline.

The Netherlands, Belgium, Germany, and Spain are the four largest single pangasius export markets in the EU for Vietnamese seafood enterprises. The Netherlands is the largest market, accounting for 36.6% of the total export value to this market.

The EU was Vietnam's largest pangasius export market more than ten years ago. However, after peaking in 2016-2018, pangasius exports to the EU started to level off gradually.

VASEP said that the value of pangasius exports to the EU increased earlier this year again, showing that many businesses still want to return to this market. The EU is still considered a large and important market for Vietnamese pangasius enterprises.