The Dutch Business Development Bank (FMO) is contemplating an investment of USD 15 million (VND 370 billion) in the Camimex Group Joint Stock Company.

Funding for Expansion

FMO’s proposed investment is aimed at facilitating the expansion of Camimex Group’s production and business operations. This expansion includes the construction of a state-of-the-art processing facility equipped with cold storage and quick-freezing capabilities. Additionally, the funds will be utilized to establish new organic seed production farms and provide the necessary working capital for organic shrimp product imports.

Camimex Group stands as one of the leading shrimp processing and exporting enterprises in Vietnam. Remarkably, it is among the select few on a global scale, dedicated to large-scale organic shrimp production. Notably, it is the sole Vietnamese entity that currently meets organic standards across its entire supply chain, from shrimp varieties to the dining table. These standards include certifications from Naturland, EU Organic, and Bio Suisse.

Impressive Operations and Exports

Camimex Group currently operates three cutting-edge processing facilities with a collective designed capacity exceeding 15,000 tons of finished products annually. The company manages an integrated shrimp value chain, which encompasses an ecological shrimp farming area covering over 6,800 hectares in mangrove forests, as well as a farming area in collaboration with local farmers spanning nearly 40,000 hectares. This acreage allocation is evenly divided, with 50% dedicated to forest preservation and 50% to shrimp farming.

The company’s products are exported to more than 25 countries and territories globally, with key markets in the United States, Switzerland, Germany, Austria, and the Netherlands. Camimex Group has set its sights on expanding its ecological shrimp farming areas to 20,000 hectares, investing in high-tech shrimp farming, and achieving 20-30% self-reliance in Vannamei shrimp input materials by 2025.

FMO’s Endorsement of Sustainability

FMO has expressed its alignment with Camimex Group’s business vision, emphasizing its commitment to promoting sustainable aquaculture in Vietnam. Expanding ecological shrimp farming areas is expected to boost production, enhance food security, elevate the livelihoods of local farmers, and contribute to mangrove forest conservation, ultimately aiding in the reduction of carbon emissions.

Challenges Amid Economic Conditions

In terms of financial performance, Camimex Group faced challenges in the first nine months of 2023. The company reported revenues of VND 1,280 billion (USD 52 million) and a net profit of VND 58 billion (USD 2.36 million), marking a decline of 41% and 34%, respectively, compared to the same period in 2022. These results indicate that Camimex Group achieved only 42% of its revenue target and 56% of its profit target for the year.

These setbacks occurred against the backdrop of persistent high inflation, particularly in developed economies, which led consumers to tighten their budgets and opt for more cost-effective food choices. Consequently, demand for shrimp, often positioned as a premium seafood option, saw a decline.

Hope for Recovery through Organic Seafood

Camimex Group anticipates a gradual recovery in its business activities, particularly as consumers increasingly favor organic seafood. Many financial institutions have assessed the shifting consumer landscape. Growing concerns related to processed foods, artificial additives, and the potential health effects of pesticides, hormones, and antibiotics have led to a change in consumer behavior. This trend gained momentum after the COVID-19 pandemic, with consumers placing greater emphasis on healthy eating to reduce the risk of illness. As this shift in dietary preferences continues, the popularity of organic seafood is expected to soar.