A shrimp breeding pond in the Mekong Delta province of Soc Trang (Photo: VNA) HCM City (VNS/VNA)- Local shrimp-breeding enterprises have mobilised investmentfrom various sources to expand production in an aim to attract partners fromshrimp supply chains from around the world.
After four decades of development, Vietnam’s shrimp breeding industry has beenrecognised as the third top exporter in the world market. Shrimp is one of thecountry’s major farm exports.
Truong Dinh Hoe, General Secretary of the Vietnam Association of SeafoodExporters and Producers (VASEP), said that Vietnam’s shrimp exports surpassedThailand in 2013, attaining an export turnover of 3.1 billion USD, comparedwith Thailand’s 2.3 billion USD.
In 2017, Vietnam had shrimp export turnover of 3.8 billion USD, doubleThailand’s shrimp exports of 1.9 billion USD, said Hoe.
To reach the target of shrimp export value of 10 billion USD for 2025 (asinstructed by the Prime Minister), shrimp breeding firms have mobilized capitalto expand areas under shrimp breeding and ensure shrimp quality and safety,allowing for traceability of produce to meet consumption demand.
Sao Ta Foods Joint Stock Company has announced that it would offer more than 8million shares priced at 25,000 VND each. With the offer, Sao Ta is expected toattain stakes of about 200 billion VND (8.7 million USD).
A spokesman from Sao Ta Foods said that capital mobilisation is expected tohelp the joint-stock firm become less reliant on bank loans, while ensuringsufficient capital for the firm’s production and business activities.
He said all the sales of shares from Sao Ta Foods will be spent on purchasingmaterials and the expansion of shrimp breeding ponds.
By the end of the thirdquarter, Sao Ta’s 200 ha of shrimp breeding ponds had supplied 10 percent ofshrimp used as materials for the company’s processing lines. Sao Ta had topurchase the remaining 90 percent from shrimp breeders in the market.
To reduce the volume of shrimp used for its production line purchased from themarket, the company has unveiled plans to invest 100 billion VND to expandshrimp breeding ponds from the existing 200ha to 400ha in 2020 and to 800 ha in2025, raising the ratio of the volume of shrimp supplied from the company’sbreeding pond networks to 30 percent.
Similarly, the Minh Phu Seafood Corporation has sold 35.1 percent of its sharesto Mitsui & Co Ltd. for 17 billion JPY (about 155 million USD), makingMitsui & Co the biggest shareholder of Minh Phu Seafood.
Le Van Quang, Chairman of the Minh Phu Seafood Corp.’s management board, saidthe company would further invest in production facilities in the Mekongprovince of Ca Mau.
Quang said the company would also apply more advanced technologies, includingartificial intelligence (AI) and the internet of things (IoT), in aquacultureand seafood production and processing in the near future, aiming to cut 50 percentto 70 percent of the company’s labour force, and at the same time increaseprofits.
According to a spokesman for Sao Ta Foods, to reach a partnership with globalshrimp supply chains, local shrimp suppliers must meet high standards.
He said that most global shrimp supply chains require not only production andmanufacturing traceability but also ASC standards for aquaculture, the higheststandards for aquaculture.
To attain ASC standards for aquaculture, aqua-breeding enterprises must havestrong financial capacity for investment in big breeding facilities that helpto reduce breeding costs, he added./.
VNA
