Vietnam: Seafood exports are facing difficulties

Published 2024년 6월 27일

Tridge summary

The Minh Phu Seafood Group and other Vietnamese seafood companies are experiencing challenges in 2024, including poor export performance due to factors like a lack of container availability, increased shipping rates, and competition from cheap shrimp. The US market is shifting towards Vietnamese competitors, while China is an increasingly significant market for these companies. However, the industry also faces challenges such as raw material sourcing, especially for products with exploited raw materials, and regulatory issues like the size regulations for seafood which are not in line with international standards. These issues, along with high production input costs and raw material shortages, are expected to continue impacting Vietnam's seafood exports in 2024.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

As a large enterprise in the shrimp and seafood industry, recently, Mr. Le Van Quang, General Director of Minh Phu Seafood Group Joint Stock Company, shared with shareholders about the business situation in the first 6 months of the year. less positive, revenue and profit are still far from plan. The main reason is that exports are poor, affected by a lack of empty containers and increased shipping rates. Another factor causing business results to not meet expectations is the difficulty in recruiting workers for the factory. Gloomy market According to Mr. Quang, the US used to be Minh Phu's main market but is having to compete strongly with cheap shrimp from Ecuador and India. Therefore, Minh Phu has agreed on a policy of reducing output in this market to 20% from 22.34% in 2023 and shifting to the Chinese market. Because this market has a huge consumption power and is close to Vietnam, it helps avoid risks of long-distance shipping at sea. Minh Phu plans to increase sales volume ...

Source: Vietstock