Vietnam's seafood firms ride profit wave ahead of US tariff hike

Vietnam’s seafood companies reported surging profits in Q2/2025, driven by importers ramping up purchases ahead of new U.S. reciprocal tariffs.

Unexpected profit surges

In the Q2 financial statement season, many seafood enterprises announced strong profit growth.

Notably, Nam Viet Corporation – Navicorp (HoSE: ANV) recorded an all-time high post-tax profit of VND333 billion ($12.7 million), a significant improvement from a loss of VND2.3 billion in the same period last year. The profit surge was fueled by rising revenue and improved gross profit margin.

Specifically, its Q2 revenue rose nearly 45% year-on-year to VND1.73 trillion ($65 million), while gross margin improved significantly from 12.3% to 28.2%.

For H1, this pangasius (tra fish) processor achieved over VND2.83 trillion ($107.95 million) in revenue, up 28.2% year-on-year; and a post-tax profit of VND465 billion ($17.74 million), almost 32 times higher.

The “queen” of pangasius - Vinh Hoan Corporation (HoSE: VHC) reported Q2 revenue flat year-on-year at over VND3.19 trillion ($121.7 million). However, gross margin improved from 14.6% to 19.5%, and gross profit rose 33% to VND623 billion ($23.8 million).

As a result, Vinh Hoan’s post-tax profit rose to VND522.5 billion, more than 1.5 times the same period last year.

In H1, while revenue slightly declined to VND5.84 trillion, Vinh Hoan’s after-tax profit still increased 39% to VND734 billion.

According to broker Vietcombank Securities (VCBS), the gross margins of pangasius exporters improved significantly due to rising export prices, especially in the U.S. Importers rushed to stock up before new tariffs were applied, pushing Q1 U.S. export prices up 8% year-over-year.

Other markets such as China showed signs of recovery, and the EU market remained stable. On the other hand, feed costs declined as the prices of wheat flour and soybean meal - key components in pangasius feed - fell by 3% and 8% respectively.

In the shrimp segment, despite pressure from U.S. reciprocal tariffs, Sao Ta Foods – Fimex (HoSE: FMC) still reported an impressive Q2 performance.

Net revenue surged 51% year-on-year in Q2 to nearly VND1.88 trillion ($71.7 million). Despite rising costs, the company still saw a 22% increase in net profit to VND101.6 billion ($3.88 million), driven by strong sales and efficient shrimp farming operations.

Shrimp industry giant Minh Phu Seafood Corporation (UPCoM: MPC) posted its highest quarterly after-tax profit in 10 quarters at VND165 billion ($6.3 million), 4.2 times higher than the same period last year. For the first half, the figure rose 4 times year-on-year to VND183 billion.

The growth was driven by slightly higher revenue, improved gross margin, and sharp cuts in selling and administrative expenses.

Challenges ahead in second half

In the first seven months of 2025, Vietnam’s seafood export value reached $6.22 billion, up 17.2% year-on-year. Shrimp remained the leading export item with $2.49 billion, up 23.6%; and pangasius followed with $1.22 billion, an 11.1% rise.

However, Le Hang, deputy secretary general of the Vietnam Association of Seafood Exporters and Producers (VASEP), warned that these strong figures reflect a "race against time" by exporters rushing shipments to the U.S. before the newly announced reciprocal tariffs were set to take effect in early July.

As of August 7, a 20% reciprocal duty will officially apply to imports from Vietnam, including seafood. Hang noted that this rate is higher than for competitors such as Ecuador (15%), the Philippines and Indonesia (19%), and Thailand (19%).

Moreover, Vietnamese products are further disadvantaged by other U.S. trade barriers such as anti-dumping (AD) and anti-subsidy duties, as well as technical standards under the Marine Mammal Protection Act (MMPA).

For the shrimp industry, the U.S. - a key market - is being squeezed by these trade barriers, causing orders to slow. Preliminary results from the U.S. Department of Commerce’s 19th administrative review (POR19) in June revealed a high AD rate of 33.29% on several major companies. If not adjusted in the final review (expected in December), Vietnamese shrimp could face the risk of exclusion from the U.S. market.

According to Hang, total shrimp exports for 2025 are projected at $3.6-3.8 billion, down from $3.9 billion in 2024, assuming companies continue to leverage Asian, EU, and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) markets, and push value-added products to Japan.

For pangasius, a bright spot is that Vinh Hoan received a 0% AD duty under POR20, restoring some confidence in the U.S. market. Still, if the new reciprocal tariff is applied, pangasius will face higher costs. Meanwhile, the Chinese market is showing signs of slowing due to inventory, prompting firms to expand into ASEAN, South America, and the Middle East.

Despite challenges, the VASEP expert believed that opportunities remain strong for seafood exporters thanks to expected recoveries in China, ASEAN, and Japan, and progress in removing technical barriers in the EU. These developments support growth in deep-processed product lines.

Trade agreements like the EU-Vietnam Free Trade Agreement (EVFTA), CPTPP, and the UK-Vietnam Free Trade Agreement (UKVFTA) continue to offer Vietnam a competitive tariff advantage over rivals, she said.

For 2025, Vietnam’s total seafood exports are projected at $9.0-9.2 billion, slightly down from 2024. This includes $3.6-3.8 billion from shrimp, $1.8 billion from pangasius, $850-900 million from tuna, and nearly $3 billion from other seafood.

To achieve this target, enterprises must proactively manage raw materials, improve product quality, invest in processing technology, and diversify markets, especially niche segments within CPTPP and ASEAN, and intra-Asian markets, Hang noted.