Tra fish firms expect rosier future

The latest figures from the General Department of Customs show that Vietnam counted nearly $173 million in export value from tra fish in October, down 4 per cent on-year, and more than $1.5 billion in total export value in the first 10 months of this year, taking a 29 per cent plunge compared to the same period last year.

The tra fish export value to the United States took a dip of 54 per cent on-year, falling to just $228 million, with Mexico down 37 per cent to $58 million, and Hong Kong and mainland China down 23 per cent to $490 million, among others.

The sliding exports reflect the general business performance of tra fish firms.

In October Vinh Hoan Corporation (VHC), deemed as the tra fish queen, generated only $18.7 million in total revenue, down 26 per cent on-year.

A company source revealed that this diminishing revenue in October was driven by a sharp fall in the export value to major markets compared to one year ago.

For instance, its exports to the US market shed 59 per cent on-year, with consumption in the domestic market also declining by 14 per cent compared to September.

Previously, in September VHC witnessed a similar picture, with the export value to the US falling by 18 per cent on-year and down 6 per cent compared to the previous month, slumping to just $11 million.

In the first 10 months of this year, VHC counted $341.2 million, equal to 70 per cent of its full-year target.

As the company has yet to announce its profit figures for October, in the first nine months of this year, it had achieved over 88 per cent of the full-year profit target, which was set at more than $42 million.

Meanwhile, Nam Viet JSC, one of the top tra fish performers in Vietnam, also faces turbulent times.

In the second quarter of this year, Nam Viet saw $2.15 million in losses, the first time it had seen contracting profits for many years. The company posted over $10 million in net profit over the same period one year ago.

In Q3 of this year, the situation was more upbeat with the company posting $42,000 in post-tax profit, yet this still slid by 99 per cent on-year.

In the first three quarters of this year, Nam Viet experienced an 11.3 per cent on-year fall in its revenue, dropping to $140.4 million, while its post-tax profit decreased by 92.5 per cent to approximately $24 million.

At International Development JSC (IDI), the company’s Q3 profit fell by more than 75 per cent on-year to around $1 million.

In the first three quarters of this year, IDI’s revenue and post-tax profit figures continued to decrease by 14 per cent and 87 per cent on-year, respectively, with figures of $225.2 million and $2.86 million.

With these results, the company has just fulfilled 66 per cent of its full-year revenue and 30 per cent of full-year profit targets in the first three quarters of this year.

Ben Tre Aquaproduct Import and Export JSC (Aquatex Ben Tre) was a rare case that witnessed positive profit growth in Q3. During the period, the company counted $58,600 in profit, up 14 per cent on-year.

In the first nine months of this year, Aquatex Ben Tre’s revenue fell by 17 per cent on-year to $16.5 million and its post-tax profit remained relatively stable at $2.1 million.

The Hanoi-based DSC Securities has forecast that tra fish exports will rebound from the fourth quarter of this year thanks to rising demands during the year-end festive occasions. It also feels that prices show signs of bottoming out.

The export price to China currently averages $2.2 per kg, down 13 per cent on-year, and the US market hovers around $2.97-$3.45 per kg, down 21 per cent.

The Vietnam Association of Seafood Exporters and Producers has revealed that US and EU markets are showing signs of improvement, with the inventory rate reaching an average level and an improved consumer confidence index.

The ear-end festive season should fuel demand, and firms are scaling up their inventories, ushering in opportunities for the tra fish sector to rebound.

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