Many seafood enterprises focus on developing the domestic market

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Navico and Bach Hoa Xanh cooperate to sell pangasius products. Photo: V.N

Export orders are positive

As one of the large-scale pangasius export enterprises in the Mekong Delta, Vinh Hoan Joint Stock Company focuses on both export development and increasing domestic market share. Regarding the export sector, this company has just announced business results for May 2024 with net revenue reaching 1,131 billion VND, an increase of 19% over the same period last year. In particular, revenue in most markets recorded positive growth compared to the same period in 2023, such as: European market increased by 21%, reaching 172 billion VND; The Chinese market increased by 12%, reaching 104 billion VND; Other markets increased by 26%, reaching 154 billion VND.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), in the two main export markets, the US and Europe, Vietnamese pangasius is an advantageous product when the US has implemented a ban on importing seafood originating from Russia and reducing anti-dumping taxes on Vietnamese pangasius products; Europe increased the tax applied to fille pollock (a substitute for fillet pangasius) from 0% to 13.7%. Thereby, creating advantages for Vietnamese pangasius when exporting to these markets.

According to Nam Viet Joint Stock Company (Navico), the order outlook for the second half of this year is more positive than the first half of the year when purchasing power in China - the company's main export market gradually recovers. Currently, this company is a pangasius production and export enterprise with the second largest closed production chain in the world, including 250 hectares of traditional farming areas, helping to provide up to 120,000 tons of raw fish/year, and 600 hectares of The high-tech farming area has been invested in since 2018, helping to provide up to 250,000 tons of raw fish/year.

To increase exports, the company will diversify products, promote value-added product research and launch new products to the market; Deploying phase 2 of the collagen factory, promoting the operation of finished collagen distribution channels. At the same time, increase market share in Navico's key export markets, expand the Asia-Pacific market, affirm brand position and reputation, create competitive advantages and deeply integrate into the world. global economy.

As for the shrimp industry, according to Mr. Ho Quoc Luc, Chairman of the Board of Directors of Sao Ta Food Joint Stock Company, the company's sales in the first 6 months of the year increased by double digits. However, the foundation for the rest of the year is quite solid due to good orders.

Develop domestic market

In addition to promoting exports, many seafood businesses are expanding their market share in the domestic market to complete their plans. For example, with many solutions to bring goods into domestic restaurants and supermarkets, revenue in the Vietnamese market of Vinh Hoan Joint Stock Company in the first 6 months of 2024 increased by 47%, reaching 329 billion VND.

In the domestic market, after the cooperation deal with Bach Hoa Xanh from March 2023, Navico's product lines are considered to have higher recognition and are easily accessible to domestic consumers. Mr. Doan Toi, General Director of Navico said: "Navico's pangasius and basa fish products are present in more than 100 countries around the world. We are actually wholesalers, and we have a good relationship with Bach Hoa." Green this time is an opportunity to cooperate to supplement the retail industry to bring international products to domestic consumers." According to forecasts, Navico's revenue from the domestic market this year could increase by up to 63% compared to 2023.

As a large-scale seafood production enterprise, currently, the domestic market revenue of Minh Phu Seafood Group Joint Stock Company is only less than 1% of total revenue. Like Navico, to increase market share in the domestic market, at the end of March 2024, Bach Hoa Xanh signed a strategic cooperation agreement with Minh Phu to sell export standard shrimp products in a chain of their nearly 1,700 retail stores. Thereby, Minh Phu aims to sell 3,000 tons of shrimp/year with a revenue of 500 billion VND in the domestic market.

For Vinh Hoan Seafood Joint Stock Company, in the first 5 months of 2024, Vinh Hoan's revenue in the Vietnamese market continuously recorded a positive growth rate. Notably, sales in the domestic market increased by 47%, to 329 billion VND. In terms of the proportion of the domestic market in the revenue structure, in 2022 it will contribute 22.4%, in 2023 it will contribute 20.6%, in the first 5 months of 2024 it will increase to 28.2% of total revenue. This shows that the domestic market is significantly increasing its influence on Vinh Hoan.

According to VASEP, in addition to expanding exports, many seafood businesses consider the domestic market as one of the important market segments and brings positive revenue to the business.