How to increase Vietnam’s shrimp production by 2-3 million tonnes
Quang, founder and CEO of Minh Phu – formerly known as “Mr. Black Tiger” when it was exclusively focused on Monodon – presented these startling numbers in a presentation on investment opportunities during last week’s Global Shrimp Forum.
Minh Phu sells over 100,000 tons of shrimp a year and produces over 30,000 tons in its own farms, and Quang explained to delegates how in the decade from 2010, the country’s shrimp farming grew 15 percent and production grew 50 percent. By 2021, Quang noted, the country was producing 922,000 tons from its 737,000-acre shrimp ponds valued at over $4 billion — a not inconsiderable slice of the $32 billion global shrimp market.
Despite the sector’s success, Quang noted that it still faces numerous challenges. These include the scattered, small-scale, and low-tech nature of the farms; pollution and poor water quality; climate change impacts such as salt water intrusion; and the lack of quality infrastructure – exemplified by the fact that water supply and sanitation share water channels.
To overcome some of these problems, Quang argued that sophisticated planning is needed to create “large, concentrated shrimp farming areas to create a biosecurity belt large enough to prevent the spread of diseased shrimp once it occurs.”
Meanwhile, setting up separate water supplies for intake and drainage could increase the shrimp’s survival rate to 60 percent or more, he mused. In terms of infrastructure, improving roads and electricity is crucial. He also mentioned the benefits of creating residential, social and cultural areas for shrimp farm workers. Should that happen, Quang argued, it could help attract investment and boost Vietnam’s shrimp production by 2-3 million tons while reducing production costs by 50 percent.
Minh Phu’s own initiatives
Quang went on to outline some of the recent initiatives undertaken by his own company, including setting up a quality shrimp seed project in Ninh Thuan Province to help improve the supply chain. In the long term, he wants to develop a plan to ensure climate-neutral shrimp production and increase monodon production in the region by over 50 percent.
According to Quang’s calculations, the level of investment required to realize the sector’s potential varies according to production intensity: mangrove/extensive/rice shrimp farms require 12,900 to 21,000 euros per hectare; Semi-intensive to intensive farms require €42,000 to €64,000 per ha, while super-intensive systems require €85,000 to €129,000 per ha.
Assuming this, Vietnam’s shrimp production could be increased by 2-3 million tons per year while reducing production costs by 50 percent.
Looking specifically at the Mekong Delta, Quang noted that the threats of climate change – including erosion and desertification – could be addressed through increased implementation of rice shrimp farming. This method, in which the rice is grown in shrimp ponds and fertilized by shrimp waste, is currently taking place on 200,000 ha of the Mekong Delta, but Quang argues that number could be increased by two to three times.
investment potential
To ensure the continued growth of shrimp, Quang believes investment is both important and timely – due to the presence of government stimulus packages aimed at domestic and international banks, local investors, as well as direct government funding.
“We call for investments, grants, joint ventures and public-private partnerships to enable the implementation of the plan to centralize cultivation areas, apply technology and ultimately strengthen the sustainability of shrimp production in Vietnam,” Quang said.
“There is a lot of work to be done for shrimp farming in Vietnam and therefore a high demand for capital injections, especially for high-tech shrimp farming models in certain areas. However, we firmly believe that a well thought out approach to planning and implementation will bring tremendous social benefits – that is the ability to provide stable, high quality shrimp to local and international markets; that is the ability to farm sustainable and eco-friendly shrimp,” he continued.
He added that commercial yields are also promising, which is why Minh Phu has invested in infrastructure, hatcheries and processing facilities in several agricultural areas, which has resulted in good yields.
Quang now wants to work with international investors or act as a bridge for international investors and development organizations to speed up the development process.