Vietnam’s Seafood Surge Amid Tariff Concerns

Surging Profits in Q2/2025

In a remarkable turn of events, seafood companies in Vietnam reported impressive profit growth during the second quarter of 2025. This surge can be attributed to a rush of purchases from importers seeking to stock up before the implementation of new reciprocal tariffs by the United States. The timing of these purchases, driven by impending tariffs, has created a unique environment in which many businesses can cultivate unprecedented profitability.

The Profit Trail: Nam Viet and Vinh Hoan Lead the Charge

Nam Viet Corporation, also known as Navicorp, made headlines with its astounding financial turnaround. The company recorded a record post-tax profit of VND333 billion (approximately $12.7 million), a remarkable recovery from a loss of VND2.3 billion in the same quarter last year. This turnaround was enabled by nearly 45% growth in revenue to VND1.73 trillion ($65 million) alongside a remarkable increase in the gross profit margin from 12.3% to 28.2%. The numbers paint a promising picture for the company, which managed to achieve VND2.83 trillion ($107.95 million) in revenue in the first half of the year, marking a substantial 28.2% increase compared to the prior year.

Similarly, Vinh Hoan Corporation, often referred to as the “queen” of pangasius, showcased resilience with Q2 revenue flatlining year-on-year at over VND3.19 trillion ($121.7 million). Nevertheless, the improvement in gross margin from 14.6% to 19.5% allowed the gross profit to rise by 33% to VND623 billion ($23.8 million). Consequently, Vinh Hoan’s post-tax profit surged to VND522.5 billion, more than 1.5 times higher than in the previous year—further illuminating the resilience of Vietnam’s seafood industry amidst external pressures.

Broader Market Trends

Market analysis reveals a positive shift for pangasius exporters. According to Vietcombank Securities (VCBS), increasing export prices—particularly in the U.S., where prices rose by 8% year-over-year—were central to enhancing gross margins. Importers increased purchases, anticipating the impending tariffs. Additional positive factors include a recovery in other markets like China and stable conditions in the EU, coupled with declining feed costs due to reduced prices for wheat flour and soybean meal.

The shrimp segment also demonstrated robust performance in Q2, despite looming pressures from U.S. tariffs. Sao Ta Foods – Fimex saw a noteworthy net revenue increase of 51% year-on-year, reaching nearly VND1.88 trillion ($71.7 million). The company reported a 22% rise in net profit, indicating strong operational efficiency paired with a high demand for shrimp amidst challenges.

Facing Tariff Challenges in H2

As of August 7, 2025, the landscape becomes increasingly complex for Vietnam’s seafood exporters. A 20% reciprocal duty on imports from Vietnam, which is higher than that of competitors such as Ecuador and Thailand, is now in effect. Le Hang from the Vietnam Association of Seafood Exporters and Producers (VASEP) cautions that while recent export figures show promise, they represent a “race against time” to deliver shipments to the U.S. market before additional tariffs came into play.

The U.S. market remains significant, but heightened tariffs could jeopardize order volumes. Furthermore, anti-dumping duties, technical standards under the Marine Mammal Protection Act, and other trade barriers complicate the situation further.

Market Projections Amid Uncertainties

Looking forward, Vietnam’s seafood experts are cautiously optimistic, with projections suggesting total seafood exports in 2025 will reach approximately $9.0-9.2 billion. Despite a forecasted slight decline from 2024, the shrimp industry is expected to remain above $3.6-3.8 billion, while pangasius may contribute around $1.8 billion. Continued engagement in Asian markets, the EU, and agreements like the EU-Vietnam Free Trade Agreement (EVFTA) bolster hope.

Vietnam’s seafood companies are encouraged to proactively manage raw materials, invest in processing technology, and diversify their market strategies to navigate the forthcoming challenges effectively. Adapting to niche segments within CPTPP markets could be instrumental in maintaining competitiveness.

Conclusion: Resilience in the Face of Challenges

The recent financial performance of Vietnam’s seafood sector showcases adaptability and resilience amid significant challenges. With varying strategies and innovative measures, many companies are positioning themselves to thrive in a competitive yet evolving global seafood market.