VIETNAM FISHERY INDUSTRY REPORT Q1/2018viracresearch.com/wp-content/uploads/2018/05/En... · 2018. 5. 2. · VIETNAM FISHERY INDUSTRY REPORT Q1/2018 1. Contents ... Vietnam seafood

VIETNAM FISHERY INDUSTRY REPORT Q1/2018

1

Contents

Executive summary 4 3.2 Situation of aquaculture and exploitation 31

1. Business environment 5 3.2.1 Overview of aquaculture and exploitation 32

1.1 Macroeconomic situation 5 3.2.2 Current status of seafood exploitation 36

1.2 Legal framework 10 3.2.3 Current status of aquaculture 37

2. World seafood market 16 3.3 Production 42

2.1 World seafood market 16 3.4 Consumption 47

2.1.1 Production 16 3.5 Driving forces 59

2.1.2 Consumption 22 3.6 Industry planning 61

3. Vietnam seafood market 24 4. Enterprise analysis 64

3.1 Characteristics of the Vietnamese fishery industry 24

2

MARD Ministry of Agriculture and Rural Development GDVC General Department of Vietnam Customs

FAO Food and Agriculture Organization of the United Nations GSO General Statistics Office

FTA Free Trade Agreement TBT Technical Barriers to Trade

ILO International Labour Organization VASEP Vietnam Association of Seafood Exporters and Producers

SPS Sanitary and Phytosanitary Measures VIRACVietnam Industry Research And Consultancy Joint Stock

Company

Abbreviation

3

Executive Summary

4

Vietnam has long been a leading seafood

producer and exporter in the region, along with

Indonesia and Thailand.

However, the fishery sector has

recorded many achievements and flourishes.

The seafood processing sector has developed

into a spearhead economic sector,

2016 is a successful year of some companies

when the gross profit of big companies such as

Hung Vuong, Vinh Hoan, Viet Thang, etc

Content is intentionally removed for demo purpose

1 Business environment

1.1 Macroeconomic situation

1.2 Legal framework

Contents

5

Part I. Business environment

1. Macroeconomic situation

Source: VIRAC, GDVC

Fishery’s contribution to GDP, 2013 – 2017e

6

GDP growth rate by quarter, 2015-2017

Source: VIRAC, GSO

%

• Gross domestic product in 2017 was estimated to increase by 6.81%

compared to 2016, of which 5.15% in Q1; 6.28% in Q2; 7.46% in Q3;

7.65% in Q4.


Average lending rate has been on downward trend since 2011.



Source: VIRAC, SBV

In 2017, the VND/USD exchange rate was stable around VND 22,400.

Source: VIRAC, SBV

7

VND/USD exchange rate, 2013-2017

Lending rates and mobilizing rates, 2012-2017%


1. Business environment

1.1. Macroeconomic situation

Source: VIRAC, GDVC

Source: VIRAC, GDVC

USD billion

Fishery’s contribution to Vietnam’s total exports, 2013 – 2017e

8

Import - Export, 2006 - 2017

USD billion



1.1. Macroeconomic situation

The young population structure creates a potential market for

the development of the fisheries sector

Source: VIRAC, GSO

Million people

Source: VIRAC, GSO

Labor force in agriculture, industry, fishery,

2011 – 2017eThousand people

9

Total population and age structure of labor force, 2014 - 2017e


Contents



2. Legal framework

10


1.2 Legal framework

Fisheries Law

11



1.2 Legal framework

12



1.2 Legal framework

Group of standards and decrees on aquaculture

No Sector Tax rate on salesGroup of laws, decrees on taxes with aquaculture, fishing and processing

13



1.2 Legal framework

14



1.2 Legal framework

15


2. World seafood market

2.1 World seafood market

2.1.1 Production

2.1.2 Consumption

Contents

16


2.1 World seafood market – 2.1.1 Production

Million tons

Global aquaculture and fishing production, 2009 – 2017e

Source: VIRAC, FAO

Global aquaculture production grew at a CAGR of 2.78% per year for the

period 2009 - 2017.

Source: VIRAC, FAO

Structure of fishing and aquaculture areas in 2016e

17




Structure of fishing fleets by area, 2014

Source: VIRAC, ILO

Source: VIRAC, FAO

Global fishermen

Global fishing fleets

Structure of global fishermen, 2016e

Million people

18




Source: VIRAC, FAO

Asia is the region with the largest fishing and aquaculture production

volume in the world

19

Source: VIRAC, FAOSource: VIRAC, FAO

Structure of world aquaculture production by region,

2016

Structure of world fishing production by region,

2016

Structure of world fishing and aquaculture production by

region, 2016




Aquaculture by region, 2015Thousand tons

Source: VIRAC, FAO

With its long coastline, dense river systems, and the encouraging

development, aquaculture in East Asia, South Asia and Southeast Asia

have developed very fast.

Top 10 countries in terms of aquaculture, 2016

Million tons

Source: VIRAC, Worldatlas

20




Top 10 countries in terms of fishing 2015

Source: VIRAC, FAO

Top 10 most caught fishes 2015

Source: VIRAC, FAO

Million tons

21



2.1 World seafood market

2.1.1 Production

2.1.2 Consumption

Contents

22


2.1 World seafood market – 2.1.3 Consumption

Source: VIRAC, FAO

Million tons

Source: VIRAC, FAO

Seafood consumption per capita, 2009 - 2016

Unit: kg

23

Global seafood consumption, 2009 - 2016e


3. Vietnam seafood market

3.1 Characteristics of the Vietnamese fishery industry

3.2 Situation of aquaculture and exploitation

3.3 Production

3.4 Consumption

3.5 Driving forces

3.6 Industry planning

Contents

24

Characteristics



Scale of Vietnam fishery industry

Source: VIRAC, GSO

25

Number of fishery enterprises 2010 - 2016 Content is intentionally removed for demo purpose



Fisheries workers in Vietnam

The system of fishing ports, wharves, mooring areas:

Form of organization of exploitation:

Source: VIRAC, GSO

Thousand people

26

The quality of human resources is limited:

Number of laborers farming, fishing and processing aquatic

products, 2010 - 2016


Strong fisheries areas in the country



27


Sector value chain and linkage among subjects in the fisheries sector, etc



Value chain of aquaculture

28


Longitudinal linkages between actors in the fisheries sector



Source: VIRAC, VASEP

29


Role of the fisheries sector in Vietnam

1. Role of the seafood processing industry in the national economy

2. Advantages of Vietnam's seafood processing industry



30





3.3 Production

3.4 Consumption

3.5 Driving forces


Contents

31

Source: VIRAC, GSO

Thousand ha

Farming area

Fishing fleets

Unit

Source: VIRAC, GSO


3.2 Situation of aquaculture and exploitation – 3.2.1 Overview of aquaculture and exploitation

Thousand CV

32

Fishing boats with a capacity of 90 CV, 2010 - 2016e

Fish farming area, 2010 - 2016e


Source: VIRAC, VASEP, GSO

Thousand tons



33

Factors affecting fisheries productivity in 2017 :

Seafood production, 1995 - 2017e


Fishing and aquaculture results in 2017

Source: VIRAC, GSO



34


2016 (Thousand tons) 2017e (Thousand tons) 2017 compared to 2016 (%)

Total

Fish

Shrimp

Others

Farming

Fish

Shrimp

Others

Fishing

Fish

Shrimp

Others

Seafood production in Vietnam in 2017e

Source: VIRAC, GSO



35



3.2 Situation of aquaculture and exploitation - 3.2.2 Current status of seafood

exploitationFishery exploitation

Thousand tons

Source: VIRAC, GSO

Structure of fishery exploitation by area, 2016ec

Source: VIRAC, GSO

36

Source: VIRAC, MARD

Thousand tons

Exploitation output of coastal provinces by region, 2017e

Vietnamese seafood exploitation, 2010 - 2017e


Source con giống trong nuôi trồng thủy sản

Material imports


3.2 Situation of aquaculture and exploitation - 3.2.3 Current status of aquaculture

37


Source: VIRAC, VASEP, GDVC

Vietnam imports mostly raw materials, aqua breeding stock. The largest

imports in 2017 are from the Indian market (accounting for 24.8% of the

import value). Followed by Norway, China, Taiwan, etc.

USD million



Source: VIRAC, GDVC

38

Seafood imports, 2013 - 2017e

Seafood import structure, 2017e


Feed for aquaculture

Aquaculture activities



39


Aquaculture

Pangasius

Source: VIRAC, GSO



Thousand tons

Shrimp

40

Production of some aquatic species, 2013 - 2017e


Thousand ha

Đối với cá tra – basa:

As for shrimp:


Source: VIRAC, VASEP, MARD

Source: VIRAC, MARD



41

Ratio of catfish farming area self-invested in some

provinces and cities in 2016

Shrimp farming area in brackish waters, 2011 - 2017e

Structure of pangasius production by province, 2017e





3.3 Production

3.4 Consumption

3.5 Driving forces


Contents

42


3.3 Production

Domestic seafood processing

Seafood processing for export

43



3.3 Production

Processing facilities of aquatic products for export by type of enterprise and kind of processed products in 2012

Type Northern Central South East South West Total

Type of business

State-owned enterprises

Joint stock companies

Private enterprises

Joint venture enterprises

100% foreign owned enterprises

Frozen

Dried

Canned

Fish sauce

Prawn crackers

Total number of export

processing facilities

Proportion


44


Stage of collection, preliminary processing, processing

Shrimp

Pangasius

Tuna


3.3 Production

45



3.3. Production

Source: VIRAC, GSO

Thousand tons

Frozen seafood and dried seafood are products that have been

processed or pre-processed and are sold for domestic consumption at

supermarkets, wholesale markets, shops, etc.

46

Frozen seafood production, 2011 - 2017e





3.3 Production

3.4 Consumption

3.5 Driving forces


Contents

47

Consumption


3.4 Consumption

Domestic consumption value of seafood, 2013 - 2016

VND billion

Source: VIRAC, GSO

Seafood consumption per capita in Vietnam, 2010 -

2013Kg

Source: VIRAC, FAO

48


Vietnamese seafood is currently consumed in more than 160 markets.

• Vietnam's seafood exports have made great strides in the past 20 years.


3.4 Consumption

49


USD million

Source: VIRAC, GDVC


3.4 Consumption

Seafood exports, 2005 – 2017e

50



3.4 Consumption

51


In 2017, the United States, Japan, China, Korea are four major seafood

import markets of Vietnam.

Source: VIRAC, GDVC

Exports of some main aquatic species in 2017 according to VASEP:


USD million


3.4 Consumption

52

Seafood export structure by value, 2017e

Export value of aquatic products, 2017eContent is intentionally removed for demo purpose

Pangasius


USD billion



3.4 Consumption

Pangasius export value 2011 – 2017e

53

Pangasius export structure by value, 2017e


Pangasius


3.4 Consumption

54


USD millionExport value of catfish to some markets, 2016 - 2017


Shrimp



USD billion


3.4 Consumption

Shrimp export value, 2011 – 2017e

Export structure of shrimp products, 2017e

55


In 2017, Vietnam exports shrimp to 93 markets

EU:

Japan



3.4 Consumption

56

China:

The US:

Top shrimp export markets of Vietnam, 2017e


Tuna

USD million

Currently, tuna products of Vietnam appear in 97 countries in the

world, expanding more than in 2016.




3.4 Consumption

Export value of the tuna sector, 2011 – 2017e

Exported tuna products, 2017e

57



3.4 Consumption

USD million


8 major tuna export markets of Vietnam, including USA, EU, Israel,

ASEAN, Japan, Canada, China, and Mexico.

58

Tuna export turnover by market, 2017e





3.3 Production

3.4 Consumption

3.5 Driving forces


Contents

59


3.5 Driving forces

Driving forces of industry development

Favorable socio-economic conditions:

60





3.3 Production

3.4 Consumption

3.5 Driving forces


Contents

61

On 8/16/2013, the Prime Minister issued Decision No.1445 / QD-TTg on approving the master plan for fisheries development up to 2020 and vision 2030 with the

following main contents:



62




63


Contents

4. Enterprise analysis

4.1 Enterprise introduction

4.2 Business results indicators

4.3 Financial indicators

4.4 Performance indicators

64

TOP FISHERY ENTERPRISES WITH THE HIGHEST REVENUE IN 2016

Name of enterprise Address Tax code

Charter

capital

(VND million)

Total assets

(VND

million)

Net revenue

(VND million)

Hung Vuong Joint Stock

Company - HVG

Minh Phu Corporation -

MPC

Vinh Hoan Corporation -

VHC

Soc Trang Seafood Joint

Stock Company -

STAPIMEX

Viet Thang Feed Joint

Stock Company - VTF

An Giang Fisheries

Import - Export Joint

Stock Company - AGF

Quoc Viet Seafood

Processing and Export

Company Limited

Nha Trang Seafoods

Joint Stock Company -

F17

Minh Hai Seafood Joint

Stock Company

Danang Seaproducts

Import-Export

Corporation



65




Hung Vuong Joint Stock Company - HVG

66


Minh Phu Corporation - MPC



67


Vinh Hoan Corporation - VHC



68


Soc Trang Seafood Joint Stock Company - STAPIMEX:



69


Viet Thang Feed Joint Stock Company - VTF



70


An Giang Fisheries Import - Export Joint Stock Company - AGF



71


Quoc Viet Seafood Processing and Export Company Limited



72


Nha Trang Seafoods Joint Stock Company - F17



73


Minh Hai Seafood Joint Stock Company



74


Danang Seaproducts Import-Export Corporation - SPD



75


Contents






76



VND million

Source: VIRAC

77

Net revenue growth, 2015 - 2016




Source: VIRAC

VND million

78

Gross profit growth, 2015 - 2016




79




Source: VIRAC

80

Selling expenses/Net revenue, 2016




Source: VIRAC

Source: VIRAC

81

Financial expenses/Net revenue, 2016Content is intentionally removed for demo purpose

Administrative expenses/Net revenue, 2016

Contents






82



Source: VIRAC

83

Accounts receivable turnover, 2015 - 2016




HVG MPC VHC Soc Trang VTF AGF Quoc Viet Seafoods F17 Minh Hai SPD Average

Current Ratio

Quick Ratio

Cash Ratio


Days in inventory

Total asset turnover

Fixed asset turnover

Source: VIRAC

Source: VIRAC

84


Contents






85




ROA (%)

ROE (%)

ROS (%)

Profit after tax (VND million)

Debt to total asset ratio (%)

Debt to equity ratio (%)

Source: VIRAC

86


REPORT DISCLAIMER

REPORT DISCLAIMER

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independent verification. VIRAC has produced this report for private circulation to professional clients only. All information and

statistical data herein have been obtained from sources we believe to be reliable and made to ensure the accuracy of the contents of

the pages of the report at the time of preparation. Such information has not been independently verified and VIRAC makes no

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materials. The content found in this report is proprietary to VIRAC and is provided solely for your personal and non-commercial use.

You agree that you will not use this report for any purpose that is unlawful and that you will not reproduce the report or redistribute it

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123

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VIETNAM FISHERY INDUSTRY REPORT Q1/2018viracresearch.com/wp-content/uploads/2018/05/En... · 2018. 5. 2. · VIETNAM FISHERY INDUSTRY REPORT Q1/2018 1. Contents ... Vietnam seafood