Minh Phu Seafood has announced it will build three new shrimp-processing factories in the Mekong Delta in a bid to up its global competitiveness and maintain its status as Vietnam’s top shrimp exporter.
The Ca Mau, Vietnam-based company will spend VND 1.35 trillion (USD 59 million, EUR 51 million) to construct the Minh Phat, Minh Qui, and Minh Phu plants, which will each have 18,000 metric tons (MT) of annual capacity, for a total capacity increase of 54,000 MT per year. The plants will all be built in the Khanh An Industrial Park in Ca Mau Province, Minh Phu CEO Le Van Quang told SeafoodSource on 29 October. Additionally, Minh Phu will build a packaging plant in the industrial park, which will have an annual production of5,000 MT.
Construction at the Minh Phat plant is expected to begin at the beginning of November and the company expects work to finish on the plant within one year. Work on the Minh Qui is hoped to start a year after the Minh Phat is put into operation, and construction on the Minh Phu plant will begin two to five years after the Minh Qui plant opens.
In a ceremony to introduce the projects to Ca Mau officials and the public on 27 October, Quang said the three processing factories will be equipped with advanced technologies to help Minh Phu better compete against other top players in the global shrimp sector.
Currently, Ecuador and India are able to supply vannamei to the global market at much lower production costs than Vietnam, Quang said. While Vietnam’s strength in deep-processing capacity has enabled it to compete and grow its shrimp trade despite its higher production cost, both Ecuador and India are investing massively to upgrade their processing capacities, Quang said.
“Therefore, the only way for Minh Phu to survive and develop is to invest more in advanced shrimp processing technologies,” Quang said.
Minh Phu exported 2,977 MT of shrimp in September, down more than 46 percent from the same month in 2020, and the value of its shrimp exports dropped 34.8 percent year-on-year to USD 39.6 million (EUR 34 million), primarily due to a massive COVID-19 outbreak that had a significant impact on the country’s shrimp-farming and -processing capabilities.
Photo courtesy of Minh Phu
