Hanoi (VNA) – Due to a sharp fall in demands inmany major markets, domestic fisheries firms are forecast to face many difficulties thisyear, and this requires them to seek measures to complete the target set in exportrevenue for 2023, according to insiders.

Minh Phu Seafood Group, a leading shrimp producer, suffered a loss for the first time in nearly seven years, as it reporteda net loss of 97 billion VND (4.13 million USD) in the first quarter of thisyear. The firm recorded a net profit of 90 billion in the same period lastyear.

Meanwhile, Vinh Hoan JSC, one of the largest firms in the trafish sector, saw a drop of 32% in revenue in the first quarter of this year and a 60% fall in after-tax profit.

This year, the firm aims for 11.5 trillion VND in revenue, and 1 trillion VNDof after-tax profit.

At the same time, Nam Viet JSC also reported a year-on-year decrease of 5% in revenueand 55% drop in profit in the first quarter of this year to 92.4 billion VND,which means there is a long way for the firm to go to complete its target of500 billion VND in profit in 2023.

According to the Ministry of Agriculture and Rural Development,in the first five months of this year, downturn was seen in the export ofmany products, including fisheries at 28%. Many fisheries products suffer asharp fall, including tra fish at 40.7% to 690 million USD, and shrimp at 34.4%to 1.22 billion USD.

Nguyen Thi Thanh Hang, an analysist from VNDIRECT Securities JSC, said highinflation coupled with economic recessions in major markets has led to a fallin demands, causing a drop in both export volume and prices of products.

After a successful year in 2022 when the majority offisheries firm enjoyed a rise between 29-86% in revenue and profit thanks tothe rebound of the US market, domestic firms this year are facing a tough yearwith a gloomy business situation in the first quarter. Some businesses evenreported a 74% drop in profit.

MARD Deputy Minister Phung Duc Tien said that in order tocomplete fisheries export targets for this year, the ministry will continue todirect aquatic farming activities in face of weather developments and markets’demands, while coordinating with coastal localities to combat illegal fishing,and applying measures to increase the quality and competitiveness of Vietnamesefarm produce.

Earlier in April, Prime Minister Pham Minh Chinh also chaired a working sessionwith the Vietnam Timber and Forest Product Association and the VietnamAssociation of Seafood Exporters and Producers to seek solutions to remove difficultiesfacing domestic firms and promote export of forestry and fisheries products.

At the working sessions, the PM asked authorised agencies tofocus on removing difficulties facing businesses in value added tax (VAT)refund policies, while strengthening trade promotion activities, especially inlarge and emerging markets, increasing inspections to ensure the origin offisheries products, and support producers in wastewater treatment./.