High hopes put for shrimp and tra fish in second quarter earnings

Illustration photo

The overseas demand for shrimp products is expected to soar over the rest of the year. This is partly attributed to easing competition from Indian exports as the South Asian country has concluded its main annual harvest season.

Furthermore, the EU-Viet Nam Free Trade Agreement (EVFTA), signed on June 30, are expected to yield positive effects on Vietnamese shrimp exports.

Aquatic exports to the EU will be immune from tariffs within a seven-year tax elimination phase as committed in the EVFTA. Notably, shrimp exports to the trading bloc will enjoy sharp tariff cuts set by the EU during the first year after the pact takes effect. Tariffs will gradually fall to zero per cent in subsequent years.

Firms expect these factors to create “breakthroughs” for shrimp exports during the second half of this year.

Meanwhile, many listed tra fish (pangasius) businesses reported a surge in profits in the second quarter of 2019, partially thanks to share sales and export growth.

According to the Viet Nam Association of Seafood Exporters and Producers (VASEP), as of the end of June, total tra fish export value hit more than 96.1 million USD, a year-on-year decline of 4.1%.

VASEP forecast that tra fish exports will recover in Q3 as the festival seasons of importers approach.

By Vien Nhu