Trade pressures: Fresh seafood is seen at Long Bien Market in Hanoi. The slower-than-expected profit growth is largely attributed to surging costs. — Reuters
HANOI: Vietnam’s seafood exporters are under pressure as rising US trade duties and tighter regulations slow growth for key markets, squeezing profits despite overall export gains.
According to the latest statistics from the Department of Customs under the Finance Ministry, seafood exports reached US$8.4bil in the first nine months of 2025 (9M25), marking a 16% increase compared to the same period last year.
Certain product categories experienced robust growth, with shrimp exports up by 22%, squid and octopus by 18% and crabs and other crustaceans by 23%.
However, the shrimp export market is fraught with difficulties.
As of Aug 7, a 20% countervailing duty and stricter regulations on imported seafood into the United States have impeded growth, causing exports to stagnate or decline for many Vietnamese companies.
One firm particularly under stress is Sao Ta Foods JSC, which derives about 33% of its exports from the United States – roughly US$80mil in 2024.
Its core export markets also include Japan (28%) and Europe (21%).
While the company posted a 5% revenue growth in the third quarter (3Q) to nearly three trillion dong and reported a 36% increase in gross profit to 418 billion dong, its margin remains under pressure.
The gross margin reached only 14%.
Over 9M25, Sao Ta recorded revenue of 6.85 trillion dong, up 23% year-on-year (y-o-y), but profit after tax rose only 7% to 251.2 billion dong.
The slower-than-expected profit growth is largely attributed to surging costs.
Sao Ta’s selling expenses doubled to 511 billion dong in the period while it recorded anti-dumping tax liabilities of nearly 98 billion dong and countervailing tax liabilities of 60 billion dong, up 98% and 158% respectively.
These taxes are connected to US regulatory actions against Vietnamese shrimp exporters. Another company under pressure is Stapimex, which is among the top Vietnamese shrimp exporters to the United States.
Additionally, its exports to this market fell by 35% in the first eight months compared with the same period in the previous year, underscoring the sharp contraction in that market.
In the pangasius (tra fish) segment, Vinh Hoan Corp recorded a troubling drop in US sales in the month of August.
The company’s total revenue for the month fell 8% y-o-y to nearly 1.1 trillion dong, while revenue from the US market shrank 36% to 271 billion dong.
Furthermore, the China market saw revenue down 31% at 73 billion dong, but Europe grew 20% to 244 billion dong and domestic sales increased 10% to 324 billion dong.
In contrast, Nam Viet Corp (Navico) bucked the trend, with 3Q results showing profit after tax of more than 283 billion dong, 10 times that of the same period last year.
In 9M25, Navico reported a robust 36% increase in revenue, surpassing 4.8 trillion dong.
The company’s profit after tax reached 748 billion dong, an impressive rise of more than 13 times from last year.
In addition to its focus on catfish, Navico is making a strategic shift towards another promising market segment – tilapia.
According to updates from SSI Securities, tilapia sales have surged, accounting for approximately 20% of revenue since the start of the year, while catfish remains the dominant segment at around 70%.
The company’s largest farming area, Binh Phu, has adapted its capacity allocation to 70% for tilapia and 30% for catfish.
Navico is also exploring the development of its own brand and aims to deepen its penetration into the white fish market in the United States.
Notably, it is the only Vietnamese company currently exporting tilapia to Brazil.
Unlike Vinh Hoan, Navico’s primary export markets do not include the United States.
Chief executive officer Doan Toi disclosed in June that the company’s main markets are China, the Middle East, Brazil, Asia and Mexico.
Nonetheless, Navico’s leadership recognises that the United States presents a significant potential export market for the company, particularly for its two flagship products: catfish and tilapia. — Viet Nam News/ANN
