Vietnam’s leading shrimp company, Minh Phu Seafood, has decided to allocate VND 300 billion (USD 13 million, EUR 11.6 million) for its farming subsidiary Minh Phu Loc An Aquaculture in Ba Ria-Vung Tau Province, Minh Phu CEO Le Van Quang told SeafoodSource on 31 December.
The additional investment will help raise Minh Phu Loc An’s charter capital to VND 1.02 trillion (USD 44.8 million, EUR 39.6 million), from VND 720 billion (USD 31.6 million, EUR 28 million) previously.
Quang said the funds will be used to support the subsidiary’s business expansion plans.
In August, Minh Phu also invested VND 62 billion (USD 2.7 million, EUR 2.4 million) to increase the charter capital of its Minh Phu Aquatic Larvae Company to VND 200 billion (USD 8.8 million, EUR 7.8 million).
But the largest investments that the Ca Mau, Vietnam-based company announced so far this year are its plans to invest VND 1.35 trillion (USD 59.4 million, EUR 52.5 million) to build three processing plants in the Mekong Delta to promote its global competitiveness and maintain its status as Vietnam’s top shrimp exporter.
Minh Phu’s expansion schemes are backed by its positive growth in 2021. The company exported shrimp worth USD 597 million (EUR 527.2 million) over January-November, an increase of 12 percent year-on-year. The U.S. was Minh Phu’s largest buyer with the export value of USD 211.2 million (EUR 186.5 million), jumping 51 percent from a year earlier, followed by Japan with USD 117 million (EUR 103.3 million), down 12 percent year-on-year; Canada with USD 63.1 million (EUR 55.7 million), 11 percent lower year-on-year; and Australia and New Zealand with USD 59.7 million (EUR 52.7 million), surging 24 percent year-on-year, data from Minh Phu showed.
The company said in November its consolidated sales in the third quarter declined by 36.7 percent year-on-year to VND 2.78 trillion (USD 122.3 million, EUR 108 million), which was mainly due to the negative impacts of the COVID-19 pandemic to its processing capacity and export volumes. However, Minh Phu earned a net profit of VND 289.2 billion (USD 13.1 million, EUR 11.6 million) in the period, rising 18.7 percent year-on-year, largely thanks to the increase in export prices.
Photo courtesy of Minh Phu
