Minh Phu is planning to significantly boost its shrimp production and its exports this year on the back of planned market expansion.
The company aims to produce 61,500 metric tons (MT) of shrimp in 2021, up 4.4 percent from 58,924 MT last year, the company said in its 2020 annual report. It expects to bring in an estimated USD 638 million (EUR 532.4 million) from exports this year, rising 8.5 percent from USD 588.1 million (EUR 490.8 million) in 2020.
Minh Phu’s primary export targets in 2020 included the United States, with a sales value of USD 149.1 million (EUR 124.4 million), down 39.4 percent year-on-year; Japan, with purchases of USD 143.9 million (EUR 120 million), up 8.5 percent; and Canada, with nearly USD 77.9 million (EUR 65 million) in sales, 24 percent higher than 2019.
Minh Phu said it hopes to pull in a 2021 profit before tax of VND 1.572 trillion (USD 68.1 million, EUR 56.9 million), an ambitious 106.2 percent increase from its 2020 total of VND 762.4 billion (USD 33 million, EUR 27.6 million). The 2021 estimate is broken down so that VND 600 billion (USD 26 million, EUR 21.7 million) in sales is expected from Minh Phu Ca Mau; VND 480 billion (USD 20.8 million, EUR 17.4 million) from Minh Phu Hau Giang; VND 279 billion (USD 12.1 million, EUR 10.1 million) from Minh Phu Loc An; VND 186.2 billion (USD 8.1 million, EUR 6.7 million) from Minh Phu Kien Giang; and VND 26.8 billion (USD 1.2 million, EUR 970,000) from other operations.
The company, which is Vietnam's largest shrimp producer, is targeting a net profit of VND 1.4 trillion (USD 60.7 million, EUR 50.7 million) this year, an increase of 107.8 percent from VND 673.8 billion (USD 29.2 million, EUR 24.4 million) last year.
To achieve that, Minh Phu will strive to maintain sales to its major markets including the U.S., and boost exports to the European Union and the United Kingdom, in the hopes of taking advantage of new free trade agreements.
The company plans on accelerating efforts to obtain government approval for a new shrimp complex in Kien Giang Province. The complex, which would be built on an area of 10,000 hectares, will have capacity to produce 250,000 MT of material shrimp and 200,000 MT of finished shrimp per year. It is expected to generate an export value of USD 2 billion (EUR 1.7 billion) per year once operational, Minh Phu said.
Photo courtesy of Minh Phu
