Fisheries stocks up as pangasius exports soar

A sharp increase in pangasius exports has boosted fisheries stocks dramatically, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

On Wednesday morning, Vinh Hoan JSC’s shares, listed on the Ho Chi Minh Stock Exchange (HoSE) as VHC, traded at VND70,900 ($2.88) per share, up 17% from the start of the year. Nam Viet JSC (HoSE: ANV) traded at VND34,100 ($1.39) per share, up 10%.

Sao Mai Group JSC (HoSE: ASM) had a stock price of VND11,400 per share, up roughly 10% from the start of the year.

According to the VASEP, the good news is a positive signal after Vietnam's pangasius export turnover recorded positive growth compared to the same period last year.

In January 2024, Vietnam’s pangasius export turnover reached $165 million, up 97% year-on-year. Specifically, pangasius shipments to China surged four times as sales of the fish skyrocketed during the recent Lunar New Year holiday.

Before this holiday, Chinese customers' overall spending surged significantly, prompting many pangasius importers to increase inventory and secure supply, according to the VASEP.

Furthermore, a new policy implemented by China has helped improve the price and volume of pangasius exports from Vietnam. Under the new policy, pangasius imported through the Dong Hung Port (China) on the border with Vietnam would attract a tax of just 2.36% starting February 1, 2024. This measure aimed to eliminate pricing advantage of black market pangasius fish.

According to the Chinese press, unofficial pangasius imports accounted for around 24% of total imports of the fish in 2023, with a 37% surge in the last month of the year. They reported that it was likely that other ports in Guangxi province would apply the new pangasius import tax rates after the Lunar New Year break. The new policy followed the recent visit of Chinese President Xi Jinping to Vietnam.

Pangasius consumption in the U.S. market is also improving, with average export prices going down to its lowest level in many years. In December 2023, the average price of pangasius exported to the U.S. market was approximately $2.42 per kg. In January 2024, the average price rose further to $2.64 per kg, according to the association.

Likewise, the export price of Vietnamese pangasius to the EU rebounded and bottomed out in December 2023, reaching approximately $2.28 per kg and remained at this level until January 2024.

Many exporters believe that the growth in pangasius stocks is a good indicator that the positive results in first months of 2024 will yield excellent results for the entire year.