By 2025, Vietnamese shrimp producer Fimex aims to earn a sales revenue of USD 300 million (EUR 303.7 million) and a consolidated net profit of VND 500 billion (USD 21.1 million, EUR 21.3 million) thanks to its expansion plans, according to Fimex Chairman Ho Quoc Luc.
Fimex’s 2021 export value, which also included sales of agricultural products, grew 12 percent year-on-year to USD 213 million (EUR 215.6 million). Its consolidated net profit in 2021 was VND 286.9 billion (USD 12.12 million, EUR 12.26 million), 27 percent higher year-on-year.
Fimex has also had a successful start to 2022. The company said its sales volume of processed shrimp in April went up 8 percent to 1,742 metric tons (MT) and its sales value (including agricultural products) rose 10 percent to USD 18.9 million (EUR 17.6 million) in the month.
The company plans to achieve its 2025 targets with two main expansion initiatives: raising its processing capacity via new processing factories, and increasing shrimp output with newly-acquired farms, Luc told Nguoi Dong Hanh news.
Fimex announced in April 2022 it expects to bring two new shrimp-processing factories online by Q3 2022. The new facilities are slated to have a combined annual processing capacity of 25,000 metric tons (MT). However, Luc said Fimex may miss the planned deadline for commercial operations due to a delay in equipment installation.
Following the new facility announcements, Fimex said on 1 September, 2022 it is finalizing a deal to acquire 203 hectares of shrimp farms from Vinh Thuan Co. which it first announced in July 2022.
Luc said the expansion into the new farms is part of Fimex’s 2021-2025 strategy to bring the company to a new level of growth. The expansion, Luc said, will help convince the high-end distribution systems in global markets that Fimex is able to control the entire process of its production, which will support its sales of products with better prices. In addition, the success in operating its new farms will also help reduce production costs, thus raise the company’s overall operational efficiency.
Fimex plans to build 240 new ponds on the newly-acquired land and start farming the first crop of shrimp there by mid-2023.
Fimex’s processed shrimp output through August was 14,563 MT, up 5.4 percent year-on-year. It sold 13,253 MT of shrimp through the first eight months of 2022, 13.4 percent higher year-on-year. The company’s sales revenue, including sales of agricultural products, surged 21.8 percent year-on-year to USD 161.9 million (EUR 163.8 million) between January and August.
In addition to the company’s expansion plans, its revenue and profit goals are being aided by the Vietnam’s booming shrimp exports. The country boosted the value of its exports to a five-year high in the first four months of 2022, which the Vietnam Association of Seafood Exporters and Producers (VASEP) attributed to high demand in major markets.
The country exported nearly USD 1.4 billion (EUR 1.45 billion) worth of shrimp between January and April, up 45 percent year-over-year and the highest value for the period since 2018. In April, sales rose 47 percent year-on-year to USD 442 million (EUR 459 million).
Photo courtesy of Fimex
