POR14 result causes difficulties to Hung Vuong Corporation

POR14 result causes difficult to Hung Vuong Corporation

According to the latest news from the Vietnam Association of Seafood Exporters and Producers (Vasep), the US DOC has announced the final anti-dumping duties of POR14 for HVG at $3.87 per kilogramme.

Previously, under the DOC’s preliminary results published on September 10, 2018, HVG was to be applied 0 per cent anti-dumping tariff.

The bad news pushed HVG’s stock down to only VND5,570 ($0.24), and liquidity on the stock market was about 830,000 units. HVG fell for four consecutive sessions, decreasing 31 per cent compared to the peak in the last three months (VND8,150 – $0.35 per share).

Beside HVG, Nha Trang Seafood will still have to pay $1.37 per kilogramme in antidumping tax. The other four tra fish exporters are C.P Vietnam, Cuu Long Fish, Green Farms Seafood, and Vinh Quang Corp., with a tax rate of $1.37 per kilogramme, an increase of 0.96 cents compared to the preliminary tax rate.

The national export tax of $2.39 per kilogramme still applies.

According to VASEP, in February and March 2019, the value of Vietnam's tra fish exports to the US decreased by 22.8 and 44.4 per cent, respectively. Vietnam has dropped to the third position (after the EU) as the US' tra fish import markets with $71.16 million of export turnover, down 5 per cent compared to the same period in 2018, accounting for 15.1 per cent of the total tra fish export value in the first quarter of 2019.

Tra fish exports to the US may continue to decrease in the second quarter.

Speaking at the 2019 annual general shareholders’ meeting (AGM), chairman Duong Ngoc Minhwas confident when talking about the company preparing for a long journey to “take the crown back.”

Minh plans to retire from HVG in 2021, giving way for the new generation. HVG’s chairman also predicted that the corporation would reach the revenue of VND20 trillion ($869.57 million) in 2020.

The unexpected blow from POR14 may be a throwback to HVG's ambitions and could cause further difficulties in repaying the looming debts that VIR previously reported HVG has accumulated.