Seafood companies face a difficult third quarter

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Seafood companies face a difficult third quarter
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Due to the rising pressure of production and transportation costs.

In the first seven months of 2022, seafood exports earned nearly US$6.7bil , a gain of 35% year-on-year.

However, Nguyen Hoai Nam, deputy general-secretary of VASEP, said that businesses are still suffering from the impact and consequences of the pandemic, while high inflation weighs on purchasing power in the country’s seafood consumer markets and higher aqua feed prices. The cost of a container going to the US West Coast is currently about 400 million dong and going to Europe is US$10,000 to US$12,000 . Other costs such as packaging and chemicals also increased.Nam said that some major markets of Vietnamese seafood, such as the United States and the European Union, record high inflation, meaning consumers have to limit spending, and the purchasing power of seafood was at risk of decline.

And without paying old debts, they will not be able to borrow new loans, affecting purchasing activities of shrimp and fish.In July, Vinh Hoan Corp’s revenue reached nearly 1.2 trillion dong , up nearly 13% month-on-month and 48% year-on-year. Many other seafood enterprises recorded big profits in the first six months of 2022.

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