Company Insight

- Vietnam has recently signed EVFTA which reduces the taxes on aquatic products exports to the EU to 0% in July 2020. Although the EU is the 3rd largest export market of Vietnam and witnesses a drop in the total consumption of seafood due to the COVID-19 pandemic, a VASEP's report indicated a lift of +10% YoY in aquatic products export to EU in 2020. Thereby, the agreement has indirectly lifted the demand for packaging thanks to the increase in seafood exports. Seafood companies account for 40% of Dohaco's revenue, so the firm is expected to gain the benefits. When COVID-19 is over, Dohaco even needs to rapidly build the Giao Long 3 factory because all current plants are running at full capacity. - E-commerce has been a phenomenon recently. According to the Google E-commerce Report in 2019, the E-commerce sector of Vietnam is expected to have an average annual growth rate of +29% and reach the size of USD43 bn in 2025, becoming the 3rd largest amongst ASEAN. Dohaco, therefore, definitely gains benefits of this emerging trend as the number of orders for E-commerce packaging purposes shall gradually increase the contribution in their sales structure