As the global shrimp industry faces prolonged challenges, including economic recession, tensions in the Red Sea, and anti-dumping measures from the US, industry insiders in Vietnam are urging the shrimp sector to develop a value chain to gain a competitive edge.

Linking Farmers, Suppliers, and Producers for Efficiency

The key to success lies in forming a value chain that connects farmers, suppliers, and producers. This model has already shown promising results, reducing production costs while promoting stable, effective, and sustainable sales. Local farming infrastructure has also been prioritized, with a focus on high-tech shrimp breeding, intensive cultivation, and rice-shrimp rotation areas.

The value chain not only contributes to the sector’s economic efficiency but also supports sustainable development. Enterprises are advised to pay attention to the tastes of their new consumers to increase their market share. For example, China is increasing its imports of fresh lobster, dried, salted, and smoked shrimp, as well as processed products. The Republic of Korea is also demanding more cooked, processed, and preserved food.

Local Firms Adapt to Challenges

Vietnamese firms are taking proactive measures to overcome headwinds and shape up their value chains to ensure orders. Sao Ta Foods is putting a new 203-hectare shrimp farm into operation in July, which will boost its production capacity. Minh Phu is also joining international fairs and exhibitions to secure new orders and improving its shrimp quality while reducing costs by applying bio-farming technology.

According to statistics from the General Department of Vietnam Customs, Vietnam’s shrimp exports reached nearly USD 1.56 billion in 2022, a 7% increase year-on-year. Vietnamese shrimp is sold in 103 countries and territories worldwide, with China, China’s Hong Kong, the US, and Japan being the leading purchasers.