As a big enterprise in the seafood processing industry in Vietnam’s Mekong Delta and one of the leading seafood exporters of the country, IDI (a key member of Sao Mai Group -ASM), has spectacularly overcome the pandemic thanks to its decisive decisions. 

In the darkness of the pandemic that overshadowed thousands of farming households, the price of tra fish (pangasius) fell to 17,000-18,000 VND/kg, putting their companies on the brink of bankruptcy. 

At that time, seafood processing firms faced many difficulties in maintaining their operations. However, IDI leaders boldly decided to buy tra fish for stock as strategic materials at low prices. The company signed agreements with farmers to buy tra fish to stock sufficient amount of fish to satisfy almost 90% of raw fish demand for 2022 at relatively low prices.

IDI’s decisiveness along with solid potential helped IDI to create a certain advantage when the tra fish industry recovered as expected. In the first six months of 2022, IDI estimated revenue of nearly 4,200 billion VND and pre-tax profit of nearly 450 billion VND.

Based on the impressive results and the 2021 dividend payment plan approved by the company’s General Meeting of Shareholders at the rate of 15% in cash, the IDI Board of Directors decided to pay the dividend early. Accordingly, shareholders of IDI will receive a total dividend of more than VND 341 billion before the third quarter of this year.

Reaching further

In the second half of 2022, especially in the fourth quarter when the business season of the pangasius industry is the most favorable, the company's leaders predict that there will be a profit boom thanks to the company's advantage of having enough high-quality supply of raw materials at low cost.

China still maintains a zero covid policy, but the IDI Board of Directors is confident and has enough grounds to be sure that the company will exceed the 2022 plan assigned by the General Meeting of Shareholders, with total revenue of 8,300 billion VND and after-tax profit of 900 billion VND. The plan for 2022 is ambitious in the context of the global economic situation that is mixed with pros and cons. But with its experience, lessons learned from practice, and its potential, reaching the goal is possible.

In addition, another important content that the Board of Directors has submitted to the General Meeting of Shareholders for approval is the dividend plan in 2022 with the rate of 30% in cash. It authorizes the Board of Directors to decide the time when the dividend can be advanced in 2022. 

This shows the strong belief of strategic shareholders in the executive ability of the Board of Directors in implementing the business plan as well as a strong affirmation for a new development phase of the company. This will be "a period of business prosperity for IDI shareholders".

Breakthrough for pangasius industry 

Currently, Vietnam holds 90-94% of the pangasius market share in the world. Many seafood processors have signed enough orders until the end of the year, prepared warehouses, built more processing plants with high capacity, focused resources on pangasius farming, and diversified products from pangasius.

A representative from IDI Company said the company has mastered a closed production process from seed, farming area, aqua feed supply, and satellite processing industries (fish meal, fish fat) to processing factory with modern technology, skilled workers, and safety quality management system. These factors were prepared for many years and consolidated even during the stressful period due to the Covid pandemic.

Pangasius exports are on a strong growth momentum in all markets after two years of pandemic. New opportunities are available for businesses that are ready to implement new business strategies.

Phong Lan