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September 18, 2015

Vietnam

Minh Phu Loses Money in Second Quarter

 

In the second quarter of 2015, Minh Phu Seafood Corporation, Vietnam’s largest shrimp exporter, incurred losses of nearly $680,000, reducing its profit for the first half or the year to about $500,000.

 

Le Van Quang, Chairman of Minh Phu Seafood, said the currencies of Indonesia, India and Thailand, the main rivals of Vietnamese farmed shrimp, have been deeply devalued, so their exports are much cheaper than Vietnam’s, causing Vietnam’s exports to fall.

 

In the first half of 2015, companies in India, Indonesia and elsewhere offered shrimp to the USA at prices that were 30% lower than those offered by Vietnam.

 

Minh Phu had to slash exports while continuing to purchase shrimp from farmers to maintain the stability of raw material prices.  Consequently, the value of its shrimp inventories rose sharply, from around $200 million to $300 million.

 

Minh Phu’s long-term debt soared in the first six months of 2015, from under $25 million to nearly $300 million.

 

Source: Seafood.com (an online, subscription-based, fisheries news service).  Editor and Publisher, John Sackton (phone 1-781-861-1441, email jsackton@seafood.com).  Minh Phu Swings to Loss as Vietnam Becomes Less Competitive in Shrimp.  Ken Coons (kencoons@seafood.com).  September 18, 2015.

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