Vietnamese seafood firms consider profit cuts, possible exit from U.S. market

At the annual general meeting held in mid-April, Ho Quoc Luc, Chairman of the Board at Sao Ta Foods (FMC), stated that in the worst-case scenario—where Vietnam faces a 46% tariff while other countries face around 20%—the company may have to withdraw from the U.S. market.

In the first quarter of 2025 alone, Sao Ta and its subsidiaries exported more than USD 46 million worth of products to the U.S. Including shipments currently in transit over the past 40 days, that figure could exceed USD 60 million. Accelerating exports ahead of the new tariff implementation is seen as a risk-mitigation strategy during the 90-day tariff delay granted by the U.S. government.

Should it be forced to leave the U.S. market, Sao Ta plans to strengthen its presence in Canada, Australia, South Korea, and particularly Japan. China is also considered a promising market, which the company is monitoring closely to enter when conditions allow.

Meanwhile, at the general meeting of Vinh Hoan Corporation—Vietnam’s top pangasius exporter—CEO Nguyen Ngo Vi Tam said the company had carefully evaluated the potential impact of new tariffs on its profit margins. Despite the risks, U.S. buyers have maintained stable demand and are urging the company to accelerate the growth cycle of its fish to meet market needs. Vinh Hoan’s leadership emphasized there is no reason yet to be pessimistic or to withdraw from the U.S., and the company plans to maximize exports during the 90-day grace period.

Still, Vinh Hoan has adopted a cautious outlook for 2025, setting a profit target of VND 1,000 billion, down VND 226 billion from its 2024 result.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), a surge in seafood exports to the U.S. is expected in May and June ahead of the new tariffs taking effect on July 9. Vietnamese firms are rushing to finalize contracts and offer competitive pricing to retain market share, with export values to the U.S. projected to rise by 10–15% compared to April.

Conversely, shipments to other markets such as China and ASEAN are likely to stall, with expected growth of only 3–5%. This is largely due to heightened competition from Chinese seafood, which is being redirected to nearby markets after facing steep tariffs from the U.S.

Source: https://seafood.vasep.com.vn/