2023 expected to be tough year for fisheries businesses

Domestic fisheries firms are forecast to face many difficulties this year, and this requires them to seek measures to complete the target set in export revenue for 2023 due to a sharp fall in demand in many major markets.

Minh Phu Seafood Group, a leading shrimp producer, suffered a loss for the first time in nearly seven years, as it reported a net loss of 97 billion VND (4.13 million USD) in the first quarter of this year. The firm recorded a net profit of 90 billion in the same period last year.

Meanwhile, Vinh Hoan JSC, one of the largest firms in the tra fish sector, saw a drop of 32 per cent in revenue in the first quarter of this year and a 60 per cent fall in after-tax profit.

This year, the firm aims for 11.5 trillion VND in revenue and 1 trillion VND of after-tax profit.

At the same time, Nam Viet JSC also reported a year-on-year decrease of 5 per cent in revenue and a 55 per cent drop in profit in the first quarter of this year to 92.4 billion VND, which means there is a long way for the firm to go to complete its target of 500 billion VND in profit in 2023.

According to the Ministry of Agriculture and Rural Development, in the first five months of this year, a downturn was seen in the export of many products, including fisheries at 28 per cent. Many fisheries products suffer a sharp fall, including tra fish at 40.7 per cent to 690 million USD, and shrimp at 34.4 per cent to 1.22 billion USD.

Nguyen Thi Thanh Hang, an analyst from VNDIRECT Securities JSC, said high inflation coupled with economic recessions in major markets has led to a fall in demand, causing a drop in both export volume and prices of products.

Fisheries businesses face tough year in 2023
Fisheries businesses face a tough year in 2023. (Photo: VNA)

After a successful year in 2022 when the majority of fisheries firms enjoyed a rise between 29-86 per cent in revenue and profit thanks to the rebound of the US market, domestic firms this year are facing a tough year with a gloomy business situation in the first quarter. Some businesses even reported a 74 per cent drop in profit.

MARD Deputy Minister Phung Duc Tien said that in order to complete fisheries export targets for this year, the ministry will continue to direct aquatic farming activities in the face of weather developments and markets’ demands while coordinating with coastal localities to combat illegal fishing and applying measures to increase the quality and competitiveness of Vietnamese farm produce.

Earlier in April, Prime Minister Pham Minh Chinh also chaired a working session with the Vietnam Timber and Forest Product Association and the Vietnam Association of Seafood Exporters and Producers to seek solutions to remove difficulties facing domestic firms and promote export of forestry and fisheries products.

At the working sessions, the PM asked authorized agencies to focus on removing difficulties facing businesses in value-added tax (VAT) refund policies, while strengthening trade promotion activities, especially in large and emerging markets, increasing inspections to ensure the origin of fisheries products, and support producers in wastewater treatment.

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(Source: VNA)