Middle East revenue share limited, impact manageable: top seafood exporter Vinh Hoan

Vinh Hoan Corporation's revenue exposure to the Middle East remains limited, helping shield the company from geopolitical tensions in the region, said its chairwoman Truong Le Khanh.

At the firm’s 2026 annual general meeting on Tuesday, Khanh said the Middle East conflict has had no material impact on the company as the region accounts for only a small share of its revenue mix.

“However, developments in the Middle East still have global effects, pushing up production costs. On the other hand, exchange rate movements during this period have provided some support,” she said.

She added that pangasius products still have significant growth potential, highlighting the fish’s ability to adapt to market fluctuations.

By-products such as heads and bones account for up to 65% of output. During periods of market disruption, higher prices for fishmeal and fish oil help reduce overall production costs.

“I call this the ‘resilience’ of pangasius in adapting to market volatility,” Khanh said, noting that pangasius contributes around 70% of revenue, a level she sees as appropriate, though it could rise to 80%.

CEO Nguyen Ngo Vi Tam said pangasius remains highly competitive among whitefish products, compared with alternatives such as tilapia and other meats.

The company’s strategy continues to center on pangasius while expanding into adjacent segments such as fruit, processed food, and collagen. Value-added products like breaded fish also offer promising growth prospects.

“Our approach is not to compete on price alone, but on intangible value, product quality and market positioning,” the CEO said, adding that the company has invested heavily in branding, communications and crisis management to strengthen its competitive edge.

Vinh Hoan aims to maintain around a 50% market share in the United States, despite intensifying competition from more than 10 other exporters entering the market. The company believes its diversified product portfolio and established reputation will help sustain its position.

Focusing on breeding and fingerling management

The company’s outlook is supported by broader industry recovery. Data from the Vietnam Association of Seafood Exporters and Producers (VASEP) showed Vietnam’s seafood exports reached $2.64 billion in the first quarter of 2026, up 14.4% year-on-year. Shrimp remained the largest segment, accounting for 40.4% of total export value, while pangasius exports rose 16.8% to nearly $514 million.

For its own operations, Vinh Hoan reported first-quarter revenue of about VND2.96 trillion ($112.44), up 11% from a year earlier, and net profit of more than VND266 billion ($10.1 million), up 38%. This represents over 21% of its full-year revenue target of VND14 trillion and more than 16% of its net profit goal of VND1.6 trillion ($60.78 million) approved at the AGM.

CEO Nguyen Ngo Vi Tam said both sales volume and prices increased in the first quarter, reflecting higher production costs as well as improved control over raw material supply compared with the same period last year.

Looking ahead, farming costs are expected to continue rising. The company plans to focus on breeding and fingerling management to maintain cost advantages, as in-house production remains cheaper than external sourcing, supporting its ability to meet 2026 business targets.