AsemconnectVietnam - Minh Phu Seafood Group Joint Stock Company (code MPC) plans to increase sales to the potential Chinese market to 10%, then 20% and higher in the future.

At the General Meeting of Shareholders last weekend, in response to shareholders' concerns about exporting to the US market and US tax investigation, Mr. Nguyen Quang, General Director of MPC, said that Minh Phu had just won an anti-dumping lawsuit, so will not be subject to anti-dumping tax in this country (unless sued again in another case). The company is more profitable because it is not charged the cost of third countries while other shrimp businesses still have to pay.
However, MPC's export activities to the US are no longer as significant as before because Ecuador and India boosted exports to this market. These countries sell regardless of price, Ecuador even sells at a loss.
Therefore, Minh Phu plans to sell 20% of its output to the US market. At the same time, turning to China, a country with more than 1 billion people, huge consumption power, and a border with Vietnam helps avoid risks of long-distance shipping at sea.
Minh Phu aims to increase sales in the potential Chinese market to 10%, then 20% and higher in the future.
On the other hand, Vietnamese shrimp is showing a loss with Indian and Ecuadorian shrimp. Minh Phu leader said that the Vietnamese shrimp industry is currently difficult to compete due to the low success rate of shrimp farming, only 40%; while India is 70%, and Ecuador is over 90%. This makes Vietnam's price 30% higher than India's and double that of Ecuador.
In the domestic market, through the Bach Hoa Xanh supermarket chain, in 2023, Minh Phu sold quite well, expecting that 2024 will have even better cooperation on the principle of mutual benefit. But according to observations, Bach Hoa Xanh's sales volume is not strong, if not sold out, it will be canceled. Minh Phu is cooperating with this unit to buy back this amount of shrimp (which is not sold out at the end of the day) for reprocessing, because the Company has controlled all the quality in advance. On the other hand, Minh Phu is also doing marketing programs to restaurants and hotels to increase purchasing power in the near future.
Regarding the business situation in the first half of this year, Mr. Quang shared that it has not recorded positive results and the implementation is still far from plan. Although production is increasing, exports are weak, affected by the US imposing high tariffs on China, causing China to "take" all ships and containers back to the country. This is expected to cool down through July, thereby helping to improve the Company's export situation.
Another point that makes business results not meet expectations is that recruiting workers for the factory is difficult. Since the beginning of March, Mr. Quang requested that each factory must recruit 7,000 workers or more by July, but it has not yet been achieved. However, productivity per worker still increases compared to the current number of people.
In 2024, MPC sets a business plan with a production target of 70,000 tons, one and a half times the previous year's performance; Revenue reached VND18,568.7 billion, an increase of 72.5% and profit after tax was VND1,265.7 billion compared to the same period loss of VND105.07 billion.
N.Nga
Source: VITIC/Tinnhanhchungkhoan