Dear Shareholders,

As compared to 2007, the raw fish output of 2008 was estimated to reach 1,65 million tones at an increasing rate of 160%. The catfish and basa products have been imported to 125 countries with an output of 640,800 tones with a $1.45 billion turnover, accounting for 32.1% out of the national aquacultural export turnover. However, the catfish exports in 2008 were likely to pose numerous challenges. Particularly, the excessive quantity of raw catfish in the Mekong Delta had significant impact on socio-economic sectors, the soaring price due to inflation led to the increasing cost of inputs, especially aquacultural feed sources while the raw catfish price has continued to fall, pushing fish farmers into difficulties in production reinvestment. Meanwhile, processing enterprises, aiming to take care of the remaining quantity from the fish farmers, hit enormous losses due to the fluctuation of foreign exchange rate and low selling price. In a great effort of overcoming such challenges, Agifish has attained a notable success in its business performance, claiming its fourth rank out of 10 leading catfish export enterprises in Vietnam in the process of collectively handling in-stock large fish quantity in the last excessive output crisis in accordance with the Government’s policy. Acknowledged as its great effort during the price storming period in 2008, the company has employed and provided about 4,000 laborers with a stable income source, with over 216% increase in the export output as compared to 2007 and an export turnover of approximately $90 million, the highest level as ever. The criteria on quantity and export turnover, and revenue also outreached the planned target. At present, Agifish is the only one among 30 nationwide companies that won the title “national trademark”.

The whole world, mired in a “once-in-a-century” crisis which drags on huge impacts, is witnessing the falling global shares and big financial brokers at risk of bankruptcy or liquidation. Some superpower leaders are embarking on providing solutions for saving their financial systems. The world is confronting unprecedented events in its history while the global financial slump seems to be out of control. This unexpected tendency has led to a worldwide deflation. Vietnam is also an unexceptional case. It is clearly identified that since the late months of 2008 has evidenced the export declination due to restricted markets, falling goods expenditure, and the fluctuation of exchange rate between USD and other currency units, which critically impacts on the product selling price. The similar phenomenon holds true to falling fish price and delay in customers’ payment…

Yet, it is predicted in 2009 that catfish and basa products remain the primary export sector of Vietnam. Given the competitive advantage of quality and price as compared to other white-meat fish species, customers are most likely to take account of choosing quality products at a reasonable price, out of which catfish products are definitely the excellent choice. Vietnamese catfish exports are likely to reduce in terms of raw fish output, estimated at only $1 billion in 2009 but potentially show better business performance thanks to the invulnerability from last year’s raw fish crisis.

In the context of the global economic recession, the company aims to reach the operational target of 2000 notwithstanding facing with numerous challenges. The restriction in market gives rise to harsher competition pressure. As given the preference of customers towards quality plus a reasonable price, it is a vital solution for the company to reduce product price as to improve its competitive capacity in today’s deflation.

Currently, we should take advantage of any possible opportunities to develop ourselves, actively learn from our mistakes to promote our competitive advantage. Presently, processing enterprises of Agifish have been perfectly invested with the freezing capacity of 400 material tones per day, meeting customers’ demand in large quantity. The value-added products labeled Agifish trademark have affirmed their stance in domestic and export markets with an increasing consumption quantity favored by large number of consumers. We are entering the year of 2009 with high spirit and optimism, believing that Agifish will achieve its operational target as planned.

On behalf of the Board of Directors, the Directors respectfully wish our shareholders, supervising officials, workers together with their families the enjoyment of good health, happiness, and success.

Kind regards!

AN GIANG FISHERIES IMPORT & EXPORT JOINT STOCK COMPANY
CHAIRMAN OF THE BOARD OF DIRECTORS

NGO PHUOC HAU