Over two years, the world witnessed the devastating impacts of the Covid-19 pandemic with countless losses and bankruptcies of large corporations. In such a challenging context, IDI managed to turn "crisis" into "opportunity" through bold decisions, demonstrating its resilience and leaving its mark on the Dragon Delta.
"Rescuing" Pangasius During the Pandemic
The prolonged social distancing pushed thousands of pangasius farming households to the brink of bankruptcy, with raw fish prices plummeting to 17,000–18,000 VND/kg. Farmers were struggling, and the economy was in dire straits. At that critical time, while many seafood companies were grappling with operational challenges, I.D.I boldly stepped in to "rescue" raw pangasius for farmers and strategically stockpile low-cost inventory.
By being perceptive and accurately predicting market signals, I.D.I’s leadership ensured that nearly 90% of the raw fish needed for 2022 was secured at a relatively low price through contracts with farmers.
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| IDI contributes to double-digit growth in seafood exports |
Mr. Le Van Nghiep, a pangasius farmer in Cho Moi District, An Giang Province, shared that during the intense period of the COVID-19 pandemic, transportation was paralyzed due to social distancing under Directive 16, and thousands of farming households were effectively "frozen." "At that time, no factory or company dared to buy fish. When the fish reached market size, it couldn’t be sold, and for smaller fish, there was no money to buy feed to continue farming. Farmers were sitting on a 'time bomb' until I.D.I stepped in and 'rescued' us by purchasing pangasius at a price better than the market," Mr. Nghiep said.
Mr. Nguyen Van Ut, Vice Director of Cho Moi Aquaculture Cooperative, noted that I.D.I has always supported pangasius farmers, even in the toughest times. "I believe that I.D.I’s strategy of linking with farmers in its farming areas will help ensure a stable supply of raw materials for production and enable further growth," Mr. Ut affirmed.
Breaking Through for Greater Heights
According to the Vietnam Association of Fisheries and Seafood Processing, Vietnam currently holds 90–94% of the global pangasius market. Many businesses have secured enough orders until the end of Q2 2022, prepared stockpiles, and expanded their processing plants with high capacity while diversifying products from pangasius.
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IDI mobilized its full capacity to fulfill signed contracts. |
The decisive nature and strong foundation have given IDI a significant advantage as the pangasius industry recovered as expected. This is evidenced by IDI's estimated revenue of nearly 4,200 billion VND and pre-tax profit of nearly 450 billion VND in the first six months of 2022.
IDI's leadership said that based on the impressive results and the dividend payment plan for 2021 approved by the General Meeting of Shareholders at a rate of 15% in cash, scheduled for the third quarter of 2022, IDI shareholders will soon receive a total dividend of over 341 billion VND before the third quarter of this year.
For the remaining six months, especially the fourth quarter when the pangasius industry's business season is most favorable, IDI's leadership forecasts a surge in profits due to the company's advantage of having a sufficient supply of high-quality raw materials.
"Although China is still maintaining its Zero-Covid policy, the company's leadership is confident and has sufficient grounds to ensure that it will achieve and exceed the 2022 plan assigned by the General Meeting of Shareholders with a total revenue of 8,300 billion VND and after-tax profit of 900 billion VND. This is a "challenging" target in the context of the global economy with both positive and negative factors. However, with our experience, lessons learned from practice, and our own strengths, achieving this goal is entirely feasible," said IDI's leadership.
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I.D.I has available raw pangasius source for production in 2022. |
Additionally, in an important content approved by the Board of Directors and presented to the General Meeting of Shareholders, there is a plan for a 2022 dividend of 30% in cash, and the Board of Directors is authorized to decide on the timing of advance dividend payments for 2022. This demonstrates the strategic shareholders' confidence in the Board of Directors' ability to implement the business plan. It is also a strong affirmation of a new development phase for IDI, reaching new heights of business prosperity and shareholder wealth.
Mr. Truong Vinh Thanh, a representative from Sao Mai Group, shared that I.D.I has mastered the closed production process, from fish breeding, farming, and feed supply to satellite industries like fish meal and oil, all the way to modern processing plants. This advantage, prepared years in advance and strengthened during the COVID-19 crisis, positions the company well. "Pangasius exports are now experiencing strong growth across markets after two years of stagnation. A new era is opening up for companies ready with comprehensive business strategies," Mr. Thanh said.
THANH LAN
