Vietnamese seafood industry sails over coronavirus outbreak
Vietnamese seafood industry sails over coronavirus outbreak
Local seafood firms managed to avoid the impacts of the coronavirus crisis by diversifying their export markets.
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The significant impacts of the epidemic have put a damper on Vietnam's export activities. Especially seafood companies that previously depended on exporting to China were hit particularly hard. However, by shifting business to the other markets, most of them have managed to mitigate the consequences of the epidemic.
Ho Quoc Luc, chairman of shrimp company Sao Ta Food JSC or Fimex Vietnam (HSX: FMC), said that China currently occupies about 0.5 per cent of their total exports as they mostly ship to Japanese restaurants – a niche market with high-profit margin.
Luc also said that the seafood demand of the Chinese market could rise slightly because China has been stockpiling food in great amounts. In addition to the plentiful stocks of pork and beef, seafood is also major export product of China. Specifically, the country has been a leading exporter of tilapia, however, the supply has been pulled down by the prolonged US-China tensions.
Regarding catfish, general director of Vinh Hoan Corporation (HSX: VHC) Ngo Thi Vi Tam said that the company mainly exports to China through sea routes. Therefore, its goods have been delivered before imports were restricted.
On the other hand, Nam Viet Corporation (HSX: ANV) stated that catfish exports to China may slow down in early 2020 because of the health crisis. Nevertheless, the issue will not last long due to the prolonged effects of the African swine fever and the return of the H5N1 epidemic. Thus, catfish and other seafood products will benefit from a foreseen shortage in pork and poultry.
