Vietnam seafood export remains red
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Agifish, a major seafood company, reported a second straight year of losses in 2018 as both exports and domestic sales fell. The recently released 2018 audited financial report of one of Vietnam’s 10 largest seafood export companies puts its loss at VND178 billion ($7.66 million). The An Giang Fisheries Import Export Joint Stock Company, to give its formal name, had lost VND190 billion ($8.2 million) a year earlier.
The company said the loss came as sales downed 43 percent to VND1.29 trillion ($55.27 million) in 2018, due to lower fish exports and domestic sales as well as lower revenues from by-products.
The poor performance last year caused auditors to raise doubts about the company’s ability to remain a going concern, but the management rejected this, saying it would increase domestic and export sales, adjust prices and reduce costs to return to the black in 2019.
Agifish has total assets of VND1.23 trillion ($52.92 million) and debts of VND800 billion ($34.42 million).
The Vietnamese seafood industry faced some challenges last year such as being subject to a “yellow card” warning by the European Commission for failing to demonstrate sufficient progress in the fight against illegal, unreported and unregulated (IUU) fishing. There were also technical barriers and anti-dumping duties in several markets.
Seafood export value rose 5.8 percent year-on-year in 2018 to reach $8.8 billion, according to the Vietnam Customs.
Questions & Answers
Q.What were the main reasons for Agifish's decline in sales during 2018?
What were the main reasons for Agifish's decline in sales during 2018?
Sales fell due to lower fish exports and domestic sales, alongside reduced revenues from by-products. This resulted in a 43 percent drop in sales for the year.
Q.What measures does Agifish's management plan to take to recover financially in 2019?
What measures does Agifish's management plan to take to recover financially in 2019?
Management intends to increase both domestic and export sales, adjust prices, and reduce operating costs. Their goal is to return the company to profitability.
Q.What wider challenges did the Vietnamese seafood industry face in 2018?
What wider challenges did the Vietnamese seafood industry face in 2018?
The industry was issued a 'yellow card' warning by the European Commission over illegal fishing practices. It also encountered technical barriers and anti-dumping duties in various markets.
Q.What was the total value of Vietnam's seafood exports in 2018?
What was the total value of Vietnam's seafood exports in 2018?
According to Vietnam Customs, the total seafood export value for 2018 reached $8.8 billion. This represented a 5.8 percent increase compared to the previous year.
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