Tra fish exporters earn big thanks to high price rise

Illustrative image (Source: VNA)

The majority of tra fish exporters enjoyed high profits in the April-June period of this year thanks to a price increase cycle in the period, according to the sector’s financial report for the second quarter of 2022.

On top of the list in the period was Vinh Hoan Corporation which earned a revenue of over 4.22 trillion VND (180.38 million USD), a rise of 80% year on year, and over 1 trillion VND in profit, a surge of 154%. The firm’s after-tax profit hit 788 billion VND, tripling that in the same period last year.

Meanwhile, Nam Viet JSC reported a net revenue of 1.29 trillion VND, a rise of 20% year on year. Its net profit reached nearly 241 billion VND, while after-tax profit amounted 447 billion VND.

At the same time, the International Development and Investment Corporation also enjoyed an after-tax profit of 390 billion VND, 18.5 times that in the same period last year.

According to the Vietnam Association of Seafood Exporters and Producer (VASEP), many other firms saw a high rise in the first six months of this year.

It attributed this to a strong increase in both prices and production.

In the first six months of this year, the export value of tra fish reached over 1.4 billion USD, up 83% year on year, with rises seen in all markets, especially the US and China.

According to SSI Securities Corporation, the average price of tra fish in the US market was 4.5-5 USD per kilo, 60% rise year on year, while that in the Chinese market was 3.1 USD per kilo, up 20%.

The SSI reported that the along with the strong recovery from the major markets, tra fish demands rose due to a high number of orders after social restriction measures in the second half of 2021 as part of efforts to prevent COVID-19 spreading.

However, the firm underlined that standstill signs in tra fish demands have been seen since May due to high a inventory in export markets. VASEP also predicted that along with the inflation pressure, the growth trend of tra fish exports will slow down in the third quarter.

It forecast that tra fish export revenue this year may reach 2.5-2.6 billion USD, a rise of 56-65% over 2021. So far, with 1.6 billion USD in revenue, the sector has completed 87% of its yearly target./.