Minh Phu Seafood Group, a prominent player in Vietnam’s shrimp export sector, is set to re-enter the domestic market after more than a decade with a renewed business strategy aimed at aligning export shrimp prices with domestic market rates.

Partnership with Bach Hoa Xanh

Minh Phu Seafood Group recently entered into an agreement with Bach Hoa Xanh to supply shrimp meeting export standards to the domestic market. Under the terms of the agreement, Bach Hoa Xanh will purchase 3,000 tons of Minh Phu shrimp, targeting a revenue of approximately VND 500 billion (USD 19.77 million) by the end of 2024. Founder and General Director Mr. Le Van Quang expressed intentions to increase the company’s domestic market share from the current 1% to 5-10%.

Minh Phu faced economic challenges in 2023, reporting an after-tax loss of VND 105 billion (USD 4.15 million), the first in eight years. This was attributed to competitive pressures from countries like India and Ecuador, where production costs are lower, impacting Minh Phu’s pricing in international markets.

Technological Innovation: The MPBio Solution

Minh Phu is adopting MPBio biological shrimp farming, a technology that enables shrimp cultivation without antibiotics or chemicals, resulting in a 50% reduction in production costs. This innovation is expected to make Minh Phu’s shrimp prices more competitive in the market.

Vietnam’s shrimp export market is showing signs of recovery, with January 2024 exports reaching USD 242 million, up by 71% compared to the previous year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Future Prospects and Expansion Plans

Minh Phu Seafood Group aims to expand export revenues by 50% in 2024, targeting revenues of more than VND 1 trillion (USD 39.48 million). The company is also exploring opportunities in international markets.