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VINH HOAN CORPORATION

VINH HOAN CORPORATION


Project Description

OVERVIEW

Vinh Hoan Corporation (VHC), fomerly known as Vinh Hoan Private Enterprise, was established in 1997. In 2007, it changed to the joint stock model and listed on HOSE. The Company has its business in aquaculture, processing and exporting of catfish. Since 2007, the Company has been put into operation under the model of a joint stock company and listed on Hochiminh Stock Exchange (HOSE). Since 2010, VHC has maintained its leading position at 15% of Vietnam catfish marketshare. The Company’s products are presented at the USA retail chains e.g. Walmart, Target, Trader Joe, and Kroger, and distributed by the top USA food companies e.g.Sysco, Gordon Food Service, US Foods.

MAIN BUSINESS

  • Raising, processing and preserving seafood products;
  • Merchandise seafood products, machines, equipments, chemicals and agriculture products;
  • Others under business license.

MARKET POSITION

  • Since 2010, VHC has maintained its leading position at 15% of Vietnam catfish marketshare. The Company occupies over 40% of Vietnam export value to USA, 44% to UK, 38% to Canada and 29% to Japan.
  • The Company’s products are presented at the USA retail chains e.g. Walmart, Target, Trader Joe, and Kroger, and distributed by the top USA food companies e.g.Sysco, Gordon Food Service, US Foods.
  • VHC is taking the leading position in the number of aquaculture zones and area of aquaculture zones certified by Aquaculture Stewardship Council (ASC), Best Aquaculture Practices (BAP), Global Good Agricultural Practice (GlobalGAP) with a scale of 180hectares, 135hectares, and 155hectares respectively.

GROWTH STRATEGY

  • Strengthening aquaculture raising and production capacity, ensuring high-quality input materials, competitive costs and certified catfish products with international certificates to meed stricter requirements;
  • Promoting research and development of products, developing collagen products, improving values and services;
  • Maitaining the stable growth rate of the export value in the USA, increasing marketshares in new markets, including Asia, typically Japan, China and Latin American;

PROSPECTIVES

  • When Vietnam signs and becomes member of free trade agreements (FTA), export value of some aquaproducts is expected to increase in the coming years because of incentive policies in tariffs towards aquaproduct exporters. Such circumstance will drive a strong momentum to expand the aquaproduct market, and promote aquaproduct production and processing.
  • Importing tax lessened sharply thanks to Free Trade Agreements (FTA). FTA combines Russia- Belarus-Kazakhstan Customs reducing seafood importing tax from 18% to 0% while other rivals such as Thailand and China still suffer the 18% importing tax.

RISK

  • Input materials for aquaculture including food, breeding animal, chemical, antibiotics are imported mainly from foreign countries. Authorized agencies can not manage and control such products. The circumstance leads to the inconsistent quality of the aqua-products. In addition, the input costs are relatively higher than other exporters, which decreases competitiveness of Vietnam aqua-products in international market.
  • With the liberalization of international commerce, Vietnam aqua-products is not only a beneficiary in tariffs but also a target to be imposed with non-tariff barrier by importers to protect their domestic production.