In recent years, Vietnam’s shrimp industry has made many important strides, consistently ranking among the world’s top three countries in terms of production and export value. However, behind this growth, there remain many shortcomings, limitations, and paradoxes that need to be addressed soon in order to maintain competitive advantages.
THE PARADOX OF PRODUCTION COSTS
According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the country currently has more than 700,000 hectares of shrimp farming, but only about 10% of the area is invested in large-scale farm models. The remainder is mainly extensive, improved extensive, semi-intensive, or intensive farming, with a success rate of only about 40%. This leads to high production costs, making Vietnamese shrimp on average about USD 1/kg more expensive than in countries with similar conditions.
In Can Tho City alone, shrimp farming covers more than 50,000 hectares (mostly in the former Soc Trang province). However, the number of households farming on an industrial scale or in cooperatives remains limited; most are small-scale operations, resulting in uneven shrimp quality.
Mr. Vo Van Phuc, General Director of Vietnam Clean Seafood Joint Stock Company (Vinacleanfood), said that the foundation for shrimp industry development lies in aquaculture. Yet in reality, Vietnam’s shrimp industry has developed thanks to processing—a paradox that, if not soon addressed, could weaken its competitive advantage.
Vietnamese shrimp products are currently concentrated mainly in deep-processing segments with high added value that competitors have not yet caught up with. However, in more common market segments, Vietnamese shrimp struggles to compete due to high production costs. In addition, logistics costs to the U.S. and EU are also much higher than those of competitors.
Mr. Hoang Thanh Vu, Deputy General Director in charge of technical affairs at Sao Ta Foods Joint Stock Company (Soc Trang), emphasized: “In shrimp farming, seed stock and water sources are the key factors determining success.” However, the water used for farming is currently drawn mainly from branches of the Mekong River, which are easily affected by pollution; meanwhile, quality seed stock only meets about 50% of farming area demand, while the rest still depends on floating, low-cost but unverified sources that do not ensure quality.
MAINTAINING COMPETITIVE ADVANTAGES
To resolve the bottleneck in seed stock, Mr. Hoang Thanh Vu proposed strengthening control over seed production and supply facilities, while promoting improvements and domestication of shrimp broodstock to proactively secure a quality, traceable supply. In addition, planning, investment in irrigation infrastructure, and monitoring water quality should be given due attention.
Mr. Ngo Cong Luan, Director of the 14/10 Agriculture and Fisheries Cooperative (Hoa Tu Commune), proposed that the State plan large concentrated farming zones with separate water supply and drainage systems, complete transport, electricity, and water infrastructure; at the same time, improve the quality of broodstock to enhance disease resistance and environmental adaptability.
In Can Tho alone, annual demand for seed stock is about 20 billion post-larvae, but local supply currently meets only 20%, with most having to be imported from other provinces. Although the locality has invested in irrigation, the system still has not kept pace with the increasingly high development requirements of the farming sector.
Vice Chairman of the Can Tho City People’s Committee, Mr. Vuong Quoc Nam, emphasized that the agriculture sector must play a core role in managing seed quality and strengthening warnings about the environment, diseases, and weather. Inspection and supervision of seed production facilities and input materials must be carried out regularly; when violations are detected, they should be made public so farmers are informed, while supporting the development of quality seed facilities right in the locality.
According to Mr. Tran Dinh Luan, Director General of the Directorate of Fisheries (Ministry of Agriculture and Rural Development), raising the success rate in shrimp farming to reduce costs, combined with the deep-processing advantages of large enterprises, is a key factor helping Vietnam’s shrimp industry maintain its position in the international market.
To achieve the goal, it is necessary to:
- Replan farming and production areas toward concentration.
- Strengthen linkages between enterprises and cooperatives or cooperative groups to form large-scale farming zones conducive to the application of science and technology.
- Invest in irrigation infrastructure and facilities serving industrial shrimp farming.
- Control the quality of seed stock, input materials, and aquatic medicines.
These synchronized solutions will contribute to developing Vietnam’s shrimp industry in an efficient and sustainable manner, continuing to uphold its advantages in the international marketplace.
Truong Xuan – Thanh Tam
Source: Nhan Dan Newspaper
