VIETNAM FISHERY INDUSTRY REPORT Q1/2020 · Contents Executive summary 4 3.1 Characteristics of the...

VIETNAM FISHERY INDUSTRY REPORT Q1/2020

1

Contents

Executive summary 4 3.1 Characteristics of the Vietnamese fishery industry 51

1. Business environment 6 3.2 Situation of aquaculture and exploitation 56

1.1 Macroeconomic situation 7 3.2.1 Overview of aquaculture and exploitation 56

1.2 Legal framework 10 3.2.2 Current status of seafood exploitation 59

1.3 Free trade agreements 17 3.2.3 Current status of aquaculture 60

2. World seafood market 24 3.3 Production 61

2.1 World seafood market 25 3.4 Consumption 66

2.1.1 Production 25 3.5 Export 67

2.1.2 Consumption 30 3.6 Risks and challenges 91

2.1.3 Global seafood trade 32 3.7 Driving forces 96

2.1.4 Price movement of some aqua products 34 3.8 Industry development planning and forecast 97

2.2 Seafood market in some countries in the region 38 4. Enterprise analysis 106

3. Vietnam seafood market 50 5. Appendix 127

2

MARD Ministry of Agriculture and Rural Development GDVC General Department of Vietnam Customs

FAO Food and Agriculture Organization of the United Nations GSO General Statistics Office

FTA Free Trade Agreement TBT Technical Barriers to Trade

ILO International Labor Organization VASEP Vietnam Association of Seafood Exporters and Producers

SPS Sanitary and Phytosanitary Measures VIRACVietnam Industry Research And Consultancy Joint Stock

Company

Abbreviation

3

Executive Summary

4

WORLD

• The global output of aquaculture and fishing increases with a CAGR

of x%/year in the period of 2013-2020f.

• In the period of 2013 - 2019e, the annual dual growth rate of fisheries

reaches x% while the annual compound population growth rate is x%.

• Shrimp:

• Tuna:

Executive Summary

VIETNAM

❖ Supply:

❖ Consumption

❖ Regarding import and export

ENTERPRISE

In 2018, the fishery industry in general has much better compared to

2017 due to favorable weather.

5

6

1. BUSINESS ENVIRONMENT

Part I. Business environment

1. Macroeconomic situation

Source: VIRAC, GDVC

Output value of agriculture, forestry and fishery (at

constant prices in 2010), 2016 - 2019

7

GDP growth rate by quarter, 2016 - 2019

Source: VIRAC, GSO

%

Gross domestic product (GDP) for the whole year of 2019 is estimated to

increase x%, although lower than the increase of x% of 2018 but higher than

the increase of the years 2011-2017.

Billion dong



Source: VIRAC, SBV

By 2020, the VND/USD exchange rate will continue to be supported by

a stable business environment, low inflation control, a high import-

export surplus, attracting and disbursing capital for domestic

investment. in addition to always growing.

Source: VIRAC, SBV

8

VND/USD exchange rate, 1/2013 - 2019

The proportion of the value of the fishery sector contributes to exports

Việt Nam, 2013 – 2019



The young population structure creates a potential market for

fisheries development.

Source: VIRAC, GSO

Million

people

Source: VIRAC, GSO

Agriculture, forestry and fishery labor force, 2011 – 2018e

Million people

9

Total population and population structure in working age, 2014 - 2018e


1.2 Legal framework

Fisheries Law

10


1.2 Legal framework

11

No Sector Tax rate on sales

1

2

3

4

5

6

7

8

10

11

12

Tax laws and decrees on aquaculture, fishing and processing aquatic products

Circular 22-TC/CTN on collection of tax for fishing activities:


1.2 Legal framework

12

No Sector Tax rate on sales

1

2

3

4

5

6

7

8

10

11

12

Tax laws and decrees on aquaculture, fishing and processing aquatic products

Circular 22-TC/CTN on collection of tax for fishing activities:


1.2 Legal framework

13

Decree 89/2015/ND-CP amends and supplements a number of articles of Decree 67/2014/ND-CP, according to which:

Circular 04/2015/TT-BNNPTNNT guiding the implementation of a number of contents of Decree No. 187/2013/ND-CP detailing the implementation of the

Commercial Law regarding international goods trading and activities. agency, trading, processing and transit of international goods and activities of international

goods trading and activities of agency, trading, processing and transit of goods with foreign countries in the field of agriculture , forestry and fisheries.

Official Letter No. 5181/BTC-TCT dated April 15, 2016


1.2 Legal framework

14

Circular No. 02/2017/TT-BNNPTNT was issued on February 13, 2017 by the Ministry of Agriculture and Rural Development to amend and supplement a

number of articles of Circular 48/2013/TT-BNNPTNT and take effect. from 3/30/2017. This Circular amends 10 articles and replaces Appendix IV with

Appendix IA; Appendix X equals Appendix IIA issued with the Circular.

On September 14, 2018, the Ministry of Industry and Trade issued Circular 26/2018/TT-BCT amending and supplementing Appendix IV of Circular

20/2014/TT-BCT on the implementation of rules of origin in the trade agreement. ASEAN - Korea Free Trade (AKFTA).

Policies to encourage investment in the agricultural sector


1.2 Legal framework

15

Circular amending charge for evaluating the origin of aquatic raw materials:

Circular 118/2018/TT-BTC concurrently regulates the rates of fees for granting fishing licenses and fishing licenses as follows:


1.2 Legal framework

16

Agricultural insurance policy

The Organic Agriculture Decree 109/2018/ND-CP issued on August 29, 2018

17

Integration process of Vietnam from 1995 up to now

By the end of 2019, Vietnam has signed, implemented, and is negotiating a total of 17 free trade agreements (FTAs). Joining international trade

agreements presents opportunities and challenges for domestic businesses.


1.3 Free trade agreements



Vietnam - Korea Agreement (VKFTA)

Vietnam - Eurasian Economic Union Agreement (Russia, Kazakhstan,

Belarus, Armenia and Kyrgyzstan):

18

Item MFN tax of Korea Commitments on import duties

Item MFN tax of EAEU Commitments on import duties



EU – Vietnam Free Trade Agreement (EVFTA)

ItemMFN tax of the

EUGSP tax

Commitments on import

duties

(*) EIF: The tax rate is 0% as soon as the agreement takes effect.

19



ASEAN Economic Community (AEC)

20

Comprehensive and Progressive Agreement for Trans-Pacific Partnership CPTPP:



Challenges of fisheries sector in integration:

• Unstable material source, high production cost

• Trademark issue:

21



22

There are about 12 international certifications for aquaculture

(1) MSC:

(2) IFFO RS:

(3) ASC:

Stand

ard

Certificati

ng unit

Ecological

labels

Required

permission

Devel

op

indep

enden

t

stand

ards

Indepe

ndent

certific

ation

Be

recognize

d in the

ASC

standard

Be

recogniz

ed in the

BAP

standard

MSC

IFFORS

ASC

BAP

FOS

Global

GAP

(4) BAP:

(5) FOS:

(6) Global GAP:



23

Stand

ard

Certificati

ng unit

Ecological

labels

Required

permission

Devel

op

indep

enden

t

stand

ards

Indepe

ndent

certific

ation

Be

recognize

d in the

ASC

standard

Be

recogniz

ed in the

BAP

standard

7) VietGAP

8) Naturland:

9) Organic standard EU

10) Organic standard Mỹ - USDANOP

2. WORLD FISHERY MARKET

2. World seafood market

2.1 World seafood market – 2.1.1 Production

Million

tones

Global aquaculture and fishing production, 2009 – 2025f

Source: VIRAC, FAO

According to FAO and OECD forecasts, global aquaculture and fishing

production have grown at a CAGR of x.xx%/ year for the period 2009 –

2025f.

Source: VIRAC, FAO

Structure of fishing and aquaculture areas in 2016e

25



Structure of fishing fleets by area, 2016e

Source: VIRAC, ILO

Source: VIRAC, FAO

Global fishermen

Global fishing fleets

Structure of global fishermen, 2016e

Million people

26



Source: VIRAC, FAO

Asia is the region with the largest fishing and aquaculture production

volume in the world

27

Source: VIRAC, FAOSource: VIRAC, FAO

Structure of world aquaculture production by region,

2016

Structure of world fishing production by region,

2016

Structure of world fishing and aquaculture production by

region, 2016


2.1 World seafood market – 2.1.1 Thực trạng sản xuất

Source: VIRAC, FAO

With its long coastline, dense river systems, and the encouraging

development, aquaculture in East Asia, South Asia and Southeast Asia

have developed very fast.

Top largest aquaculture countries

28

Million tons/year



Top countries in terms of fishing, 2016

Source: VIRAC, FAO

Top 10 most caught fishes 2016

Source: VIRAC, FAO

Million tons

29

In 2016, global fishing production reached x million tons, China still leads the

world in terms of output with x million tons, down x% compared to 2015,


2.1 World seafood market – 2.1.2 Consumption

Source: VIRAC, FAO

Million

tonnes

Source: VIRAC, FAO

Seafood consumption per capita, 2009 - 2019e

kg

30

Global seafood consumption, 2009 - 2019e• In the period of 2013 - 2019e, the annual dual growth rate of fisheries

reaches x% while the annual compound population growth rate is x%.


2.1 World seafood market – 2.1.2 Consumption

31

In 2020, there are 6 basic food trends affecting seafood consumption:

• Demand for a protein-rich, low-carb (low-carb) diet shows no signs of slowing down:

• Increased demand for processed foods and full-meal meal menus is driving the consumption of all protein-containing products, including seafood.


2.1 World seafood market – 2.1.3 Global seafood trade

Billion USDGlobal seafood trade, 2008 - 2019e

Source: VIRAC, FAO

32

Global seafood export structure, 2018

Source: VIRAC, Trademap

• In the period of 2016-2019, the world fishery industry grew stably.

• In 2019, seafood export value is estimated to increase only slightly

by x% compared to the previous year due to the US-China trade

tensions with the uncertainties surrounding Brexit which are causing

adverse conditions for the economic environment. joint.


2.1 World seafood market – 2.1.3 Global seafood trade

Top 10 seafood exporting countries and regions, 2018Billion

USD

Source: VIRAC, Worldrichestcountries

Top countries and regions importing seafood, 2018Billion

USD

Source: VIRAC, Worldrichestcountries

In 2018, seafood import value to EU reached x Billion USD.

33


2.1 World seafood market – 2.1.4 Actual situation of some main aquatic products

34

World shrimp prices, 1/2014 - 2019Shrimp

Price

Supply

Export

USD/kg

Source: VIRAC, Indexmundi



Major markets

✓ Japan:

✓ America:

35



Tuna

Price

Supply

36



37

Thailand

America


2.2 Seafood markets in some countries in the region

China

Geographical advantages and Chinese policies in aquaculture development

38



China seafood production, 2013 - 2019e

Million

tonnes

39

Source: VIRAC, OECD-FAO

The production of fishery caught in China in 2019 is estimated at x thousand tons, down x% from the previous year.

Regarding freshwater fishing,

Regarding aquaculture, China continues to maintain as the country with the largest aquaculture production in the world, accounting for more than x% of

the total world aquaculture production.



Fishery product processing

40

Fishery product consumption



China is also the leading exporter in the world with the main market is Japan with

about x% of the export share

41

Source: VIRAC, FAO

Value of Chinese seafood exports 2013 - 2018

Billion USD


China tuna import structure, 9M/2019



Indonesia

Area

Water area

Coastline

Population (2019)

GDP (2019)

Agriculture’s contribution to GDP (2016)

Fishery’s contribution to GDP (2016*)

Indonesia

Million

tonnes

42

Seafood production in Indonesia, 2013 - 2019e

Million

tonnes

Source: VIRAC, OECD - FAO



43

Seafood export value of Indonesia, 2018Billion USD

Source: VIRAC, Trademap Source: VIRAC, Statista

Thousand

tonnes

Seafood import-export output of Indonesia, 2014 - 2018

Source: VIRAC, Statista

Thousand

tonnes

Shrimp exports of Indonesia, 2014 - 2018



Source: VIRAC, NOAA

Structure of US processed seafood products by value, 2018

Source: VIRAC, NOAA Source: VIRAC, NOAA

Million USD

Million USD

The most valuable US processed seafood species, 2018

The group of fishery products with the highest sales in the US, 2018

On average, an American consumed x pounds of seafood and shellfish in

2018,



45

Thousand

tonnes

Source: VIRAC, VASEP, NOAA Source: VIRAC, VASEP

US shrimp imports, 2015 - 2019 US tuna import market by value, 2019

In 2019, the US shrimp import volume is estimated at x Thousand tones, equivalent to USD Billion, a slight increase in production but a slight decrease

in value compared to 2018.



Thailand

Area

Water area

Coastline

Population (2019)

GDP (2016)

Agriculture's contribution to GDP (2016)

Thailand

46

Source: VIRAC, OECD - FAO

Million

tonnesBillion

baht

Source: VIRAC, Statista

Seafood production of Thailand, 2013 - 2019e Contribution of the fisheries sector to Thailand's GDP,

2013-2018



Thailand's seafood export value increased by x% in 2018 to x Billion USD.

47


Seafood export value of Thailand, 2013 - 2018

Billion

USD

Structure of Thailand's shrimp export market, 7M/2019 Structure of Thailand's squid and octopus import market, 7M/2019

Source: VIRAC, VASEP Source: VIRAC, VASEP



Top 10 largest global seafood companies in 2018

Founded year Headquarter Revenue in 2016

(billion USD)

Logo

Source: VIRAC

48



49

1. Maruha Nichiro:

2. Nippon Suisan Kaisha:

3. VIETNAM MARKET

Characteristics

3. Vietnam market

3.1 Characteristics of the Vietnamese fishery industry

Scale of Vietnam fishery industry

Source: VIRAC, GSO

51

Number of businesses in the fisheries sector, 2013-2018

Number of laborers engaged in aquaculture, fishing and

processing, 2013-2018

3. Vietnam market


Source: VIRAC, GSO

Thousand

people

52

Fisheries workers in Vietnam

The system of fishing ports, wharves, mooring areas:

Form of organization of exploitation:

The quality of human resources is limited:

Strong fisheries areas in the country

3. Vietnam market


53

Sector value chain and linkage among subjects in the fisheries sector, etc

3. Vietnam seafood market


Value chain of aquaculture

54

Longitudinal linkages between actors in the fisheries sector



Source: VIRAC, VASEP

55

3. Vietnam market


56

Aquaculture area, 2010 - 2017e

Fishing boats with capacity of 90 CV, 2010 - 2018e

Thousand

hectares

Units Thousand

CVs

Farming area

The aquaculture area of Vietnam was stable during the period of 2010 -

2017e,

Source: VIRAC, VASEP, GSO

Thousand tones

3. Vietnam market

3.2 Aquaculture and capture situation – 3.2 Overview of aquaculture and capture

57

Aquatic production output, 2013 – 2019

• Seafood production in 2019 is estimated at x Thousand tones, an increase of x% compared to the previous year, of which fish reaches x Thousand

tones, an increase of x%; shrimp reached x Thousand tones, increasing x%; Other seafood reached x Thousand tones, increasing x%.

Vietnam seafood production, 2016 –2019

Source: VIRAC, GSO

3. Vietnam market

3.2 Aquaculture and capture situation – 3.2 Overview of aquaculture and capture

58

2016 2017 2018e 2019 % 2019/2018

3. Vietnam market

3.2 Aquaculture and capture situation - 3.2 Fisheries exploitation situation

Fisheries exploitation Thousand

tonnes

Source: VIRAC, GSO

Structure of fishery exploitation by region, 2017e

Source: VIRAC, GSO

59

Source: VIRAC, MARD

Thousand

tonnes

Fishery exploitation of coastal provinces in regions, 2017e

Vietnam fishery production, 2013 - 2019

3. Vietnam market

3.2 Aquaculture and capture situation - 3.2 Fisheries exploitation situation

60

Thousand

USD

Source: VIRAC, GDVC

Seafood import turnover, 2013 - 2019e

Source: VIRAC, VASEP, GDVC

Import structure of fishery products, 2019

• In 2019, seafood import turnover is estimated to reach x Billion

USD, up x% compared to 2018, accounting for x% of the country's

total import turnover of goods of all kinds.

3. Vietnam market

3.3 Production

61

Processing inland aquatic products

Although the habit of Vietnamese people mainly uses fresh seafood products in daily meals, according to a report of the Department of Agro-Processing and Market

Development, in the period of 2016-2019, the Processed seafood products will increase from x Thousand tones to x Thousand tones in 2019, achieving an

average growth rate of about x%/year.

3. Vietnam market

3.3 Production


62

Domestic seafood processing facilities by products 2017

Categories Enterprise Processing facilities

3. Vietnam market

3.3 Production

63

Seafood processing for export

Stage of collection, preliminary processing, processing

Shrimp

Pangasius

Tuna

3. Vietnam market

3.3 Production

64

3. Vietnam market

3.3 Production

Source: VIRAC, GSO

Thousand

tones

Frozen seafood are processed or semi-processed products and taken to domestic consumption at supermarkets, wholesale markets, shops, etc.

65

Frozen seafood production, 2011 - 2019e

Domestic consumption

3. Vietnam market

3.4 Consumption

66

Domestic seafood consumption value, 2013 - 2019e

Billion

dong

Source: Collected by VIRAC Source: VIRAC, GSO

Kg/cap

Consumption of fishery products per capita in some countries,

2019

Thousand

USD

Source: VIRAC, GDVC

3. Vietnam market

3.5 Export

Vietnam seafood export, 2013 - 2019

67

• In 2019, the total value of seafood exports is estimated to reach x

Million USD, growth decreased by x% compared to 2018.

Source: VIRAC, GDVC

3. Vietnam market

3.5 Ex;port

68

Seafood export structure by value, 2019

Vietnam's top seafood export market, 2019

Source: VIRAC, GDVCSource: VIRAC, GDVC

Thousand USD

• In 2019, seafood export is particularly positive for the market of

the countries participating in CPTPP, in which exports to Japan,

Australia, Mexico, Malaysia have a positive growth, while exports to

Canada decreased slightly.

Main products

3. Vietnam market

Main products - Pangasius

70

Pangasius value chain and value added at each stage


Some businesses in the value chain

3. Vietnam market


71

Area of farming and pangasius production through each year, 2012 - 2019

Source: VIRAC, GSO

• In 2019, the area of farming pangasius is estimated at x Thousand

hectares; increasing x% compared to last year. Pangasius production is

estimated at x Thousand tones, an increase of x% compared to 2018.

Pangasius production structure by province, 10M/2019e

Source: VIRAC, MARD

Source: VIRAC, GSO, MARD

3. Vietnam market


Dong/kg

Commercial pangasius prices are falling to a low level in 2019 (since

2014), fluctuating around x VND/kg - at this price farmers are suffering

losses.

72

Commercial Pangasius price, 2013 - 2019Pangasius life cycle


Billion

USD

Source: VIRAC, GDVC

73

3. Vietnam market


• By the end of 2019, the total export value of pangasius was estimated at x

Billion USD, down x% compared to 2018.

Pangasius export value, 2011-2019

Pangasius export structure by value, 2019

74

3. Vietnam market


• In terms of categories, the proportion of frozen pangasius fillet

exports in the first 9 months of 2019 increased x% compared to the

same period in 2018,

Source: VIRAC, GDVC

Pangasius export by type, 9M/2019

Pangasius exports by enterprise, 6M/2019

75

3. Vietnam market


Overview of POR:

POR: annual US Department of Commerce (DOC) administrative review. Every year, DOC inspects and takes the results of the export of seafood from Vietnam to the

United States two years earlier, from which there is a basis for applying antidumping duties on Vietnamese businesses - a shield for US businesses.

Unit: USD/Kg POR8 POR9 POR10 POR11 POR12 POR13 POR14 POR15

Announcement day 14/3/13 13/5/14 9/1/15 29/3/16 27/3/2017 30/3/18 26/4/2019 11/10/2019

Administration review periods of the DOC

76

3. Vietnam market


Enterprise Sector Profile

Vinh Hoan

HVG

Revenue structure 2018 Export market structure 2018

Export market structure 2018

77

3. Vietnam market



IDI


3. Vietnam market

Main products - Shrimp

78

Shrimp value chain and value added at each stage


Some businesses in the value chain

Note: Price of organic raw shrimp is usually 20-30% higher than raw shrimp.

Seed source

In 2019, the whole country has x brackish water shrimp hatcheries, including x black tiger shrimp hatcheries and x white leg shrimp hatcheries. The number

of shrimp produced is x million (including x million black tiger shrimp and x million white shrimp

Import of raw materials

3. Vietnam market


79

SHRIMP



• Although not achieving satisfactory results as expected, Vietnam's

shrimp exports to major import markets also showed positive signs

in 2020.

Billion

USD

80

3. Vietnam market


Shrimp export value, 2011 - 2019

Top Vietnam's shrimp importers by turnover, 2019

Source: VIRAC, GSO

3. Vietnam market


Thousand

tonnes

• The brackish water shrimp farming area as of November 2019 is estimated at x Thousand hectares, an increase of 0x% over the same period in 2018.

81

Source: VIRAC, GSO

Thousand

hectares

Area for brackish shrimp farming, 2011-11M/2019Production of some shrimp species, 2013 - 2019e

82

3. Vietnam market


Top Vietnamese shrimp exporters, 2018e

Source: VIRAC, GSO

83

3. Vietnam market



MPC

CMX



84

3. Vietnam market



FMC


85

3. Vietnam market


Source: VIRAC, Agromonitor

Market share of enterprises' shrimp exports to the EU, 2017-2018eEU:

86

3. Vietnam market



Market share of shrimp exports of businesses to the US, 2017 -

2018eUSA:

87

3. Vietnam market



Market share of enterprises' shrimp exports to Japan, 2017-2018eJapan

Supporting factors: Limitations

Opportunities Challenges:

88

3. Vietnam market


TUNA

Thousand

USD

In 2019, Vietnam's tuna exports reached x Thousand USD, up x% compared to 2018.

• USA:


Export value of tuna industry, 2011 - 2019 Exported tuna products, 2019

89

3. Vietnam market

Main products - Tuna


90

3. Vietnam market

Main products - Tuna

• EU: The total value of Vietnam's tuna exports to the EU in 2019 reached more than x Thousand USD, down nearly x% compared to 2018.

• ASEAN: Vietnam's total tuna export value in the year increased by nearly x% compared to 2018, reaching x Thousand USD.

• Israel:


3.6 Risks and challenges - 3.6.1 Risks

Environmental risks and exploitation management risks

Competitive risks

91


3.6 Risks and challenges - 3.6.1 Risks

Island dispute risk

Risk in export markets

Material risk

92


3.6 Risks and challenges - 3.6.2 Challenges

• Firstly,

• Secondly,

• Thirdly,

• Fourthly,

• Fifthly,

• Sixthly,

93


3.6 Risks and challenges - 3.6.2 Challenges

• Seventhly,

• Eighthly,

94

95

3. Vietnam market

3.6 Risks and challenges - 3.6.3 SWOT

Strength: Weaknesses:

Opportunities: Challenges:


3.7 Driving forces

Driving forces of industry development

Favourable socio-economic conditions:

96

On 8/16/2013, the Prime Minister issued Decision No.1445/QD-TTg on approving the master plan for fisheries development up to 2020 and vision 2030 with

the following main contents:


3.8 Industry development planning and forecast – 3.8.1 Industry planning

97



98

b) Aquaculture

Output of some key objects by 2020:



99

National Action Plan for Vietnam's shrimp industry development to 2025 (Issued together with the Prime Minister's Decision No. 79/QD-TTg of January 18,

2018)

1. Objectives:



100

2. Development orientations

3. Mission



101

- Invest in building and upgrading the key infrastructure system (transport, water supply and drainage canals) to serve concentrated, large-scale organic and organic

shrimp production areas.



102

d) For processing and consumption of shrimp products

- Reviewing and developing shrimp processing capacity and technologies suitable to raw shrimp production capacity and meeting the requirements of the

consuming market.



103

On August 17, 2018, the Prime Minister issued Decision No. 1047/QD-TTg: “Approving the Scheme on development of ocean fishing and organizing

fishermen to go fishing in waters one. number of countries ”with the view:


3.8 Industry development planning and forecast – 3.8.2 Forecast - Global fishery industry

104

Source: VIRAC, OECD, FAO

Thousand tones

Forecast of global seafood production and consumption,

2017-2025f

• Organic seafood tends to increase

Organic aquaculture, also known as ecological farming, is a special way of adding value with the purpose of protecting the ecological environment, reducing disease

rates, food loss and improving product quality.


3.8 Industry development planning and forecast – 3.8.2 Forecast - Vietnam fishery industry


Thousand

USD

105

Seafood export value, 2013 - 2020f

Shrimp industry:

• In 2020, the shrimp industry is expected to have a lot of growth through positive signs from production and the market.

4. ENTERPRISE ANALYSIS

TOP FISHERY ENTERPRISES WITH THE HIGHEST REVENUE IN 2018

Name of enterprise Address Tax codeTotal assets

(VND million)

Net revenue

(VND million)

4. Enterprise analysis

4.1 Enterprise introduction

107

Minh Phu Corporation - MPC



108

Vinh Hoan Corporation - VHC



109



110

BIEN DONG SEAFOOD



111

I.D.I International Development & Investment Corporation



Hung Vuong Joint Stock Company - HVG

112

Quoc Viet Seafood Processing and Export Company Limited



113



114

Nam Viet Joint Stock Company

Soc Trang Seafood Joint Stock Company - STAPIMEX:



115



116

SAO TA FOODS JOINT STOCK COMPANY



117

Cuu Long Fish Joint Stock Company


4.2 Business results indicators

VND million

Source: VIRAC

118

Net revenue, 2017 - 2018



119



Source: VIRAC

120

Self – financing ratio, 2017 - 2018

Asset turnover, 2018

Source: VIRAC



Source: VIRAC

Source: VIRAC

121

Financial expenses/Net revenue, 2016 - 2017

Administrative expenses/Net revenue, 2016 - 2017


4.3 Financial indicators

Source: VIRAC

122

Solvency, 2017 - 2018


4.3 Financial indicators

MPC VHC

BIỂN

ĐÔNG

SEAFOO

D

IDI HVG QVFOOD ANV STAPIMEX FIMEX ACL Average

Current Ratio

Quick Ratio

Source: VIRAC

123


4.4 Performance indicators

Source: VIRAC

124

MPC VHC

BIỂN

ĐÔNG

SEAFOOD

IDI HVG QVFOOD ANV STAPIMEX FIMEX ACL Average

Liability on total asset (%)

Liability on owner equity (%)

Liability/ Total asset and liability/ Owner equity ratios, 2018



Source: VIRAC

125

Profit margin, 2018



126

5. Appendix

Contents

127

Appendix

Fishery Law2017

128

Fishery Law 2017 consists of 9 chapters of 105 articles, a decrease of 1 chapter, an increase of 43 articles compared to the Law of 2003 and basically the names of the

chapters have not changed, adding a new chapter is the fishery control chapter. New points in Fishery Law 2017:

✓ Firstly, the first new point is the regulation on the national database on fisheries

Appendix

Fishery Law 2017

129

✓ Ninth, regulations on fisheries control, internalization of IUU regulations

Appendix

Decree 26/2019/ND-CP

130

Provisions on Exploitation of Fisheries Outside Vietnamese Waters:

Appendix


131

Regulations on Export - Import of aquatic breeds:

Appendix


132

• 24 hours before arrival, organizations/individuals have ships transporting aquatic products and aquatic products originating from fishing activities (for import,

temporary import, re-export, border-gate transfer and transit through Vietnamese territory). ) must notify the competent authority of the Ministry of Agriculture

and Rural Development according to Form No. 17.KT (Appendix IV issued with the Decree) via the National Single Window Portal.

Appendix


133

Provisions on Import of endangered precious and rare aquatic species

Appendix


134

• Certificate of Establishments eligible for producing/rearing aquatic breeds

Appendix


135

• Import/Export of aquatic breeds

• These regulations contribute to greater transparency and clarity than Fishery Law Vietnam, making fishermen's fishing operations more efficient as

well as meeting the requirements of origin and international standards.

Appendix


136

• Instead of all previous prepackaged products that require certification of conformity, now there are only 3 product groups including:

BALANCE SHEETS

Unit: VND million 2017 2018

A. SHORT-TERM ASSETS

I. Cash and cash equivalents

II. Short-term financial investments

III. Short-term receivable

1. Short-term receivables of customers

IV. Inventories

B. LONG-TERM ASSETS

I. Long term receivables

II. Fixed assets

TOTAL ASSETS

A. LIABILITIES

I. Current liabilities

1. Borrowings and short-term financial leased

liabilities

2. Taxes and other payables to the State budget

II. Long-term Liabilities

1. Borrowings and long-term financial leased

liabilities

2. Provision for long-term payables

B. OWNER’S EQUITY

I. Owner's equity

II. Other expenses

TOTAL CAPITAL RESOURCES

113

INCOME STATEMENT

Unit: dong 2017 2018

Net revenue

Cost of goods

Gross profit

Revenue from financing activities

Financial expense

Loan interest expenses

Cost of sales

Enterprise administration expenses

Net profit from business operations

Total accounting profit before tax

Costs of current corporate income tax

Costs of deferred corporate income tax

Profit after tax

Appendix

Financial Statement - Minh Phu Corporation - MPC

CASH FLOW STATEMENT


I. Cash Flow From Operating Activities

Net cash Flow From Operating Activities

II. Cash Flow From investing Activities

Net Cash Flow From investing Activities

III. Cash Flow From financing Activities

Net Cash Flow From financing Activities

Net Cash Flow of the year

Cash and equivalents in the beginning of the year

Cash and equivalents in the end of the year

Appendix

Financial statement– Vinh Hoan Joint Stock Company

138

BALANCE SHEETS







IV. Inventories

B. LONG-TERM ASSETS


II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



liabilities




liabilities


B. OWNER’S EQUITY

I. Owner's equity

II. Other expenses


INCOME STATEMENT


Net revenue

Cost of goods

Gross profit


Financial expense


Cost of sales






Profit after tax

CASH FLOW STATEMENT











Appendix

Financial statement– BIEN DONG SEAFOOD

139

CASH FLOW STATEMENT

Đơn vị: đồng 2017 2018


Net cash Flow From Operating Activities - -


Net Cash Flow From investing Activities - -


Net Cash Flow From financing Activities - -

Net Cash Flow of the year - -

Cash and equivalents in the beginning of the year - -

Cash and equivalents in the end of the year - -

INCOME STATEMENT


Net revenue

Cost of goods

Gross profit


Financial expense


Cost of sales






Profit after tax

BALANCE SHEETS







IV. Inventories

B. LONG-TERM ASSETS


II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



liabilities




liabilities


B. OWNER’S EQUITY

I. Owner's equity

II. Other expenses


Appendix

Financial statement– I.D.I International Development & Investment Corporation

140

BALANCE SHEETS







IV. Inventories

B. LONG-TERM ASSETS


II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



liabilities




liabilities


B. OWNER’S EQUITY

I. Owner's equity

II. Other expenses


INCOME STATEMENT


Net revenue

Cost of goods

Gross profit


Financial expense


Cost of sales






Profit after tax

CASH FLOW STATEMENT











Appendix

Financial statement– Hung Vuong Joint Stock Company - HVG

141

BALANCE SHEETS







IV. Inventories

B. LONG-TERM ASSETS


II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



liabilities




liabilities


B. OWNER’S EQUITY

I. Owner's equity

II. Other expenses


INCOME STATEMENT


Net revenue

Cost of goods

Gross profit


Financial expense


Cost of sales






Profit after tax

CASH FLOW STATEMENT











Appendix

Financial statement– Quoc Viet Seafood Processing and Export Company Limited

142

BALANCE SHEETS







IV. Inventories

B. LONG-TERM ASSETS


II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



liabilities




liabilities


B. OWNER’S EQUITY

I. Owner's equity

II. Other expenses


INCOME STATEMENT


Net revenue

Cost of goods

Gross profit


Financial expense


Cost of sales






Profit after tax

CASH FLOW STATEMENT











Appendix

Financial statement– Nam Viet Joint Stock Company

143

BALANCE SHEETS







IV. Inventories

B. LONG-TERM ASSETS


II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



liabilities




liabilities


B. OWNER’S EQUITY

I. Owner's equity

II. Other expenses


INCOME STATEMENT


Net revenue

Cost of goods

Gross profit


Financial expense


Cost of sales






Profit after tax

CASH FLOW STATEMENT











Appendix

Financial statement– Soc Trang Seafood Joint Stock Company - STAPIMEX:

144

BALANCE SHEETS







IV. Inventories

B. LONG-TERM ASSETS


II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



liabilities




liabilities


B. OWNER’S EQUITY

I. Owner's equity

II. Other expenses


INCOME STATEMENT


Net revenue

Cost of goods

Gross profit


Financial expense


Cost of sales






Profit after tax

CASH FLOW STATEMENT











Appendix

Financial statement– SAO TA FOODS JOINT STOCK COMPANY

145

BALANCE SHEETS







IV. Inventories

B. LONG-TERM ASSETS


II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



liabilities




liabilities


B. OWNER’S EQUITY

I. Owner's equity

II. Other expenses


INCOME STATEMENT


Net revenue

Cost of goods

Gross profit


Financial expense


Cost of sales






Profit after tax

CASH FLOW STATEMENT











Appendix

Financial statement– Cuu Long Fish Joint Stock Company

146

BALANCE SHEETS







IV. Inventories

B. LONG-TERM ASSETS


II. Fixed assets

TOTAL ASSETS

A. LIABILITIES



liabilities




liabilities


B. OWNER’S EQUITY

I. Owner's equity

II. Other expenses


INCOME STATEMENT


Net revenue

Cost of goods

Gross profit


Financial expense


Cost of sales






Profit after tax

CASH FLOW STATEMENT











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REPORT DISCLAIMER

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independent verification. VIRAC has produced this report for private circulation to professional clients only. All information and

statistical data herein have been obtained from sources we believe to be reliable and made to ensure the accuracy of the contents of

the pages of the report at the time of preparation. Such information has not been independently verified and VIRAC makes no

representation or warranty, whether express or implied, of any kind with respect to the document and its contents, information and

materials. The content found in this report is proprietary to VIRAC and is provided solely for your personal and non-commercial use.

You agree that you will not use this report for any purpose that is unlawful and that you will not reproduce the report or redistribute it

outside your organization, or place it on a website for public access without the express written permission of VIRAC.

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