Fashion
Rising global inflation caused sales of two major seafood exporters Vinh Hoan and Sao Ta to plunge as consumers in their main markets tighten spending.
Vinh Hoan, a pangasius export giant, saw September revenue plunging 28% from August to VND917 billion ($37.96 million), its biggest decline in eight months. Exports to the U.S. dropped 37% year-on-year and to China, 52%.
Sao Ta, a shrimp exporter, saw sales falling 10% from August to $19.8 million, its second monthly decline in a row. The financial figures of the two companies reflect the difficulties Vietnam’s seafood industry are facing.
Seafood exports fell to a seven-month low of $850 million in September, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). This is because of declining consumption in the U.S., EU, China and the U.K., which have been recorded since July.
Shrimp exports reached $350 million, up 13% year-on-year, the slowest growth rate among major seafood products.
Analysts of ACB Securities said shrimp is considered a high-end product and during difficult times consumers tend to switch to cheaper protein.
Sao Ta leaders forecast that there would not be any major breakthrough in sales for the remaining months due to rising global inflation. They, however, are confident that the company’s earnings targets will be achieved.
Thanks to strong recovery in the first half year, VASEP forecasts that Vietnam’s seafood exports would reach this year’s target of $11 billion by the end of November.
