Minh Phu Seafood Group has released the documents for its 2024 Annual General Meeting of Shareholders, scheduled for June 22. The company has set a revenue target of VND 18,568 billion (USD 728.1 million) for this year, representing a 72% increase compared to 2023. Additionally, Minh Phu aims for a profit after tax of VND 1,265 billion (USD 49.75 million), a significant turnaround from the previous year’s loss of VND 105 billion (USD 4.12 million). If successful, this would mark the highest profit for the company since 2008.

Strategic Focus on Quality and Innovation

Minh Phu’s leadership has outlined two key strategic tasks to achieve their goals. First, rather than competing on price with shrimp products from India and Ecuador, Minh Phu will focus on enhancing quality and creating a unique market presence. This strategic shift aims to differentiate Vietnamese shrimp in the global market.

Second, the company plans to complete and promote shrimp seed production using MPBio biotechnology. This initiative aims to reduce the price of Vietnamese raw shrimp to be competitive with Ecuador’s by 2030. Furthermore, Minh Phu is striving to achieve a self-sufficient supply of 50% of its raw material needs for processing plants by 2035.

Competitive Landscape and Industry Challenges

Minh Phu’s leadership acknowledges the intense competition faced by Vietnamese shrimp products in key export markets such as the United States, China, and Japan. Vietnamese shrimp is under significant pressure from both supply and demand sides. As supply increases, demand decreases, leading to reduced export value. Additionally, high input material costs make it difficult for Vietnamese shrimp to compete on price in the international market.

The 2023 Annual Report highlighted several industry challenges. The pandemic led to increased costs for farmed shrimp in Vietnam, while Ecuador’s farmed shrimp production surged to 0.8-1.4 million tons, contributing to a global oversupply. This oversupply caused shrimp prices to plummet, reaching only 50% of the cost price.

Addressing Market Challenges and Diversification Strategy

In response to these challenges, Minh Phu plans to diversify its product offerings. The company will focus on deep processing to create value-added products while maintaining high-quality raw materials. This strategy aims to mitigate the impact of low shrimp prices and increase profitability.

Additionally, Minh Phu is exploring market expansion opportunities in countries such as Korea, Australia, and New Zealand. Domestically, the company aims to increase its shrimp market share by 5-10% this year.