Two major seafood firms have reported a surge in revenue in the first quarter thanks to surging prices and recovering demand.
Vinh Hoan Corporation, the largest listed seafood company, posted revenues of VND3.2 trillion ($139.4 million) in the first three months of this year, up 80 percent year-on-year.
Pangasius has become its main export earner, with sales of this fish surging 160 percent year-on-year in February.
Sao Ta Foods JSC, another seafood firm, saw its revenue surge by 39 percent year on year in the first quarter to $58.7 million.
The shares of these two seafood companies have witnessed strong gains over the past time.
Ticker VHC of Vinh Hoan traded at around VND102,600 on Thursday, up 53 percent since January while FMC of Sao Ta climbed to a record VND72,500, up 37 percent
A recent report by the Rong Viet Securities Corporation said that pangasius exports will record a strong recovery this year due to increased global demand and supply shortage from Russia. The high selling price will last until the end of the second quarter due to increase in raw material prices.
Another report by Mirae Asset Securities said Vietnamese pangasius will directly benefit from the Russia-Ukraine conflict.
It said Russian pollock always competes directly with Vietnamese pangasius in the world market and economic sanctions imposed by the U.S. and Western countries against Russia are expected to create opportunities for the Vietnamese fish.
Vietnam’s seafood exports grew by 40 percent year-on-year to US$2.4 billion in Q1 despite direct impacts of the ongoing Russia-Ukraine crisis.
The growth was led by Pangasius catfish, whose exports increased by 88 percent to $646 million and accounted for 27 percent of overall exports, according to the Vietnam Association of Seafood Exporters and Producers.
Shrimp remained the top seafood export item, accounting for 37.5 percent of the total at over $900 million, up 37 percent.