Vietnam's aquaculture industry occupies an important position in the international market, and many listed companies play a key role in aquaculture, processing and export.
This article will take a deep look at five representative Vietnamese aquaculture listed companies, including Vinh Hoan Corporation, International Development and Investment Corporation (I.D.I), Sao Ta Food, South Vietnam Corporation and Travel Investment and Marine Food Development Corporation, analyze their business models, market performance, opportunities and challenges, and show the prosperity and development potential of Vietnam's aquaculture industry.
Vinh Hoan Corporation
Company Profile
Vinh Hoan Corporation (Công ty Cổ phần Vĩnh Hoàn) is a leading aquaculture company in Vietnam. Headquartered in the Mekong Delta, Vietnam, it is currently listed on the Ho Chi Minh City Stock Exchange with the stock code VHC. The company's main business is the breeding and processing of pangasius. In 2023, its revenue totaled US$421 million and its net profit was approximately US$40.86 million, an increase of 20% compared to 2022.
Main products and markets
Vinh Hoan's main products include:
Basa fish fillets
Cod products
Processed products such as fish collagen and gelatin
Major markets include:
The United States: 40-50% of export revenue
Europe: about 20%
China: has grown significantly in recent years and has become an important market
In January 2024, the company's revenue in major markets was:
The United States: VND 185 billion
Europe: VND 154 billion
China: VND 117 billion
Recent major events
Vinh Hoan has made significant progress in investment and expansion recently, including:
A new 5,000-ton basa fish product production line in 2023 to enhance its competitiveness in the global market.
A planned investment of VND 93 billion will be used to expand production facilities and update technology.
Partnering with Entobel to promote sustainable aquaculture and use insect protein as feed.
Opportunities and Challenges
Vinh Hoan faces many opportunities and challenges in Vietnam's seafood industry:
Opportunities:
Vietnam is rich in aquatic resources, especially in the Mekong Delta, which provides a good breeding environment for the company.
The increasing demand for sustainable and high-quality aquatic products in the international market provides opportunities for the company to export.
Challenges:
Global market fluctuations may affect export demand, especially in times of economic uncertainty.
It is necessary to deal with changes in international trade policies and technical trade barriers, which may increase operating costs and affect market access.
International Development and Investment Joint Stock Company I.D.I
Company Overview
International Development and Investment Corporation (CÔNG TY CỔ PHẦN ĐẦU TƯ VÀ PHÁT TRIỂN ĐA QUỐC GIA I.D.I) is an enterprise that occupies an important position in Vietnam's seafood industry. Headquartered in Ho Chi Minh City (Thành phố Hồ Chí Minh), it is currently listed on the Ho Chi Minh City Stock Exchange with the stock code IDI. The company's main business includes the breeding, processing and export of catfish (i.e. whitefin dolphin). In 2023, the operating income was approximately US$303 million and the net profit was approximately US$3.08 million. Compared with 2022, both the operating income and net profit in 2023 declined.
Main Products and Markets
The main products of International Development and Investment Company include:
Catfish fillets: fresh and frozen catfish fillets, widely exported to the world.
Fishmeal and fish oil: as an important component of aquatic feed.
Aquatic feed products: feed customized for fish at different growth stages.
The company's current market covers more than 50 countries, including the United States, China, Southeast Asia and the Middle East. In 2023, the company's revenue in the Vietnamese market was approximately US$197 million (4.606 trillion VND), and the overseas market revenue was approximately US$112 million (2.615 trillion VND).
Recent Major Events
IDI's recent activities in M&A and investment include:
The company is one of six Vietnamese catfish exporters to receive low anti-dumping duty rates from the US Department of Commerce (under POR19) in 2024. This preferential policy opens up a larger market for IDI's seafood exports.
IDI signed a strategic cooperation agreement with Patagonia Cuisine LLC to expand its presence in the US and South American markets. The agreement aims to strengthen the "IDI" brand and enhance sustainable growth potential.
Industry Opportunities and Challenges
In Vietnam, the aquaculture industry in which IDI operates faces many opportunities and challenges:
Opportunities
Growing market demand: With the increase in demand for catfish in major markets such as the United States, China and Southeast Asia, it provides IDI with opportunities to expand its market share.
Policy support: The US Department of Commerce has reduced anti-dumping duty rates, creating favorable conditions for Vietnamese seafood products to enter the US market.
Challenges
Global economic uncertainty: Global economic fluctuations may affect seafood export prices and sales.
Rising costs: Due to factors such as inflation, operating costs are rising, putting pressure on the company's profits.
Intensified competition: Competition from seafood exporters from other countries is growing, especially in terms of price and quality.
Sao Ta Foods Joint Stock Company
Company Overview
Sao Ta Foods Joint Stock Company (Công Ty Cổ Phần Thực Phẩm Sao Ta) is a major player in Vietnam's seafood processing industry. Founded in 1996 and headquartered in Soc Trang, Vietnam, the company is currently listed on the Ho Chi Minh City Stock Exchange (HoSE) with the stock code FMC. The company's main business includes processing, trading and exporting of seafood products, with a particular focus on the production of shrimp and pangasius. At the same time, Sao Ta Foods also operates aquaculture farms to ensure the supply of raw materials in its production process. In 2023, the company's operating income was approximately US$213 million and its net profit was US$12.69 million. In 2022, the operating income was US$192 million and the net profit was US$78 million.
Main Products and Markets
Main Products
Processed shrimp products: including various forms of frozen shrimp, such as breaded shrimp and pre-fried shrimp.
Basa fish products: for domestic and foreign markets.
Major markets
Japan: the largest market, mainly deep-processed shrimp products.
United States: ranked fifth.
South Korea: ranked ninth among export destinations.
Recent major events
Sao Ta Food has recently made important investments and acquisitions, including:
Expanding shrimp farming area and processing facilities to increase production capacity.
C.P. Vietnam purchased 6.5 million shares of Sao Ta Food in 2023, increasing its shareholding from 16.56% to 24.9%, with a transaction amount of more than VND300 million (approximately US$128,000).
In addition, the company is committed to expanding shrimp farming area by at least 500 hectares in the next few years.
Industry opportunities and challenges
In Vietnam, the seafood industry in which Sao Ta Food operates faces multiple opportunities and challenges.
Opportunities
Global demand growth: As the international market demand for high-quality seafood products rises, Sao Ta Food has the opportunity to further expand its market share.
Technological progress: The introduction of new technologies can improve production efficiency and product quality, allowing the company to maintain its advantage over the competition.
Challenges
Market volatility: Shrimp price fluctuations may affect profit margins.
Supply chain disruptions: Global supply chain issues continue to affect production and export activities.
Environmental regulatory pressure: Sustainable development goals require companies to adopt more environmentally friendly practices in the production process, which may increase operating costs.
Nam Viet Corporation
Company Overview
Nam Viet Corporation (Công Ty Cổ Phần Nam Việt) is an important player in Vietnam's aquaculture industry. It is headquartered in Việt Nam and is currently listed on the Ho Chi Minh City Stock Exchange with the stock code NAV. The company's main businesses include aquaculture, seafood processing and export. In 2023, the operating income was approximately US$186 million, an increase of approximately 4.44% from US$180 million in 2022; the net profit in 2023 was approximately US$1.64 million, an increase of approximately 7.14% from the net profit of US$1.4 million in 2022.
Main Products and Markets
Main Products
Posa fish: including fresh and frozen products.
Fish oil: used in food and industry.
Fishmeal: used for feed and other industrial purposes.
Processed seafood products: such as breaded or seasoned fish fillets.
Major markets
The main markets for Nam Viet include:
United States
China
Japan
South Korea
These markets are critical to the company's export strategy, especially for pangasius products.
Recent major events
Nam Viet has recently made significant investments in mergers and acquisitions, including a partnership with Amicogen Nam Viet Co., Ltd., focusing on extracting collagen from fish skin, with a total investment of nearly $1.68 million. In addition, the company has also upgraded its technology to improve production efficiency and meet international standards.
Industry Opportunities and Challenges
Opportunities
Global demand growth: With the rise of healthy eating trends, the demand for seafood products continues to grow, providing Nam Viet with opportunities to expand its market.
Technological innovation: By introducing advanced technologies, the company is able to improve production efficiency and product quality, thereby enhancing market competitiveness.
International market expansion: The company is actively exploring new international markets to reduce its dependence on a single market.
Challenges
Global economic fluctuations: Economic uncertainty may affect consumer demand, thereby affecting the company's sales performance.
Sustainability issues: Overfishing and increasingly stringent environmental regulations pose challenges to the company's operations, requiring sustainable development measures.
Increased competition: Competition from other seafood exporters, such as Thailand and Indonesia, is growing, and the company needs to continue to innovate to remain competitive.
Travel Investment and Seafood Development Corporation
Company Overview
Travel Investment and Seafood Development Corporation (Công ty Cổ phần Đầu tư Du lịch và Phát triển Thủy sản), headquartered in An Giang Province, Vietnam, is currently listed on the Ho Chi Minh City Stock Exchange with the stock code TSM. The company's main business is the processing and trading of seafood products, with a particular focus on the production of fishmeal and crude fish oil. In 2023, operating revenue was approximately US$123 million and net profit was approximately US$3.14 million.
Main Products and Markets
The main products of Travel Investment and Seafood Development Corporation include:
Fishmeal: a high-protein ingredient for animal feed.
Crude fish oil: used in edible oil production and other uses.
The company's main markets include Vietnam and several key regions, including China, Taiwan, South Korea, Japan and Thailand. In recent years, domestic sales have accounted for a significant proportion of revenue, and export revenue has been approximately US$16 million (approximately ₫38.3 billion).
Opportunities and Challenges
Opportunities
Growing demand in the domestic market: As consumers pay more attention to healthy food, the demand for high-quality seafood products has also risen.
International market expansion potential: By exporting to more countries, the company has the opportunity to increase market share and increase revenue.
Challenges
Fluctuations in raw material prices: Instability in the global supply chain may lead to higher raw material costs.
Increased competitive pressure: Competition between domestic and foreign seafood producers is becoming increasingly fierce.
Regulatory changes affecting exports: Changes in international trade policies and regulations may affect the company's export business.
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