Minh Phu Hau Giang Seafood Joint Stock Company (Vietnam)

Founded in late 2006 in Hau Giang Province, the subject is engaged in processing frozen shrimp for export. According to the Deputy General Director, its production officially started in 2011. All of the products are exported to major markets such as Japan (25%), Australia (23%), USA (15%), EU, South Korea. In late 2022, the export ratio to EU and Australia was 15% and 10%, respectively. Noticeably, in late 2021, the subject started construction of the second factory near the current one to produce high-end products. The design capacity of the new factory equaled about 60% capacity of the current one which is equivalent to 15,000 tons per year. As a result, the subject recorded a noteworthy amount of costs of construction in progress in 2022 and 2021. This factory is now in operation but with only about 15% capacity due to low orders. 2022 is a successful year for Vietnam's seafood industry in general and shrimp in particular. Vietnam's shrimp export turnover in 2022 set a record when it reached USD 4.3 billion, an increase of more than 11% compared to 2021. This also explains the strong growth in business results of the subject in 2022. Vietnam's shrimp exports in 2023 are expected to reach about USD 3.4 billion, 21% lower than in 2022. Shrimp exports are dominated by price competition in the context of excess world shrimp supply and low selling prices. Shrimp exports to most major markets are lower than in the same period last year, except for a few small markets such as Hong Kong and Switzerland, which increased by 5%, and Taiwan increased by 19%. Notably, in the USA, the increase in consumer demand will be met by imports from Latin America due to lower logistics costs. In the Chinese market, the demand for imported shrimp is still increasing strongly, but because there are too many supplies "rushing" into this market at low prices. Therefore, it is very difficult for Vietnamese shrimp to compete on price. In the last month of 2023, Vietnamese shrimp exports to this market still decreased compared to the same period. In the first months of 2024, there may be a slight recovery. According to a member of the board of directors, its business results also decreased according to the general industry trend. Revenue and profit reached about VND 5,600 billion and VND 120 billion, respectively in 2023.