Vietnam is projected to become the world’s largest shrimp producer and exporter by 2045, with a projected output of 4 million tonnes and an export revenue crossing US$20 billion.
This huge projection will result in Vietnam having 25% share of the global shrimp output, said Le Van Quang, Chairman-General Director of Minh Phu Seafood Corporation, one of the largest shrimp exporters in Vietnam by revenue. Recently, another company, Soc Trang Seafood JSC (Stapimex) surpassed Minh Phu to take the leading position for shrimp exports. Other major players include MPC, Ca Mau Seafood Processing and Service JSC, Sao Ta Foods JSC, Thuan Phuoc Seafoods & Trading Corp and Trung Son Hung Yen Foodstuff Corporation.
The Vietnamese government is assisting new players in this industry by giving soft loans and 5-years income tax exemption amongst others.
In 2020, Vietnam earned US$3.73 billion from exporting 411,000 tonnes of shrimp, up 11.07% in value and 6.72% in volume from the previous year despite impact of the COVID-19 pandemic, according to data from Vietnam Association of Seafood Exporters and Producers (VASEP).
The huge potential of this industry has also brought more indirect investments. Recently, major feed producer BioMar has acquired a majority stake in the feed operations of one of Vietnam’s leading shrimp feed suppliers, Viet-UC. This partnership will give BioMar access to Vietnam’s huge shrimp production sector.
BioMar is already a significant shrimp feed producer in South and Central America, with factories in Ecuador and Costa Rica. BioMar foresees further consolidation in the shrimp industry in this decade.