Dutch bank FMO mulls $15 mln investment in Vietnam shrimp exporter

The Netherlands’ Entrepreneurial Development Bank (FMO) is considering a credit package worth $15 million for Vietnamese shrimp producer and exporter Camimex Group JSC.

The package is aimed to finance expansionary capex to construct a new processing factory, including cold storage and fast freezing systems, as well as constructing new organic hatcheries.

It will also provide working capital required for certifications and purchasing of organic shrimp, the bank said in a release.

The capex forms part of a larger plan to improve the incomes of 7,200 smallholder farmers through organic certifications and supplying organic certified shrimp postlarvae, promoting the sustainable management of up to 16,300 hectares of wetlands by promoting sustainable Silva-aquaculture practices, which includes mangrove cover expansion.

As such, the financing is poised to strengthen climate adaptation and resiliency of shrimp farmers and sequester carbon through increasing mangrove coverage. Camimex’s vision aligns with FMO’s in promoting sustainable aquaculture in Vietnam, the bank noted.

Established in 1977 in the Mekong Delta province of Ca Mau, Camimex processes seafood, mainly shrimps, at three processing factories, with an annual capacity of 15,000 tons. It is now one of Vietnam’s leading processors and exporters of conventional and premium organic shrimps.

The firm’s products are shipped to 25 countries and territories, with the key markets being the U.S., Switzerland, Germany, Austria, and the Netherlands.

According to its consolidated financial statement, it earned a net profit of VND36.6 billion ($1.57 million) on revenue of VND1.28 trillion ($52 million) in the first three quarters of 2023, both down 41% year-on-year.

Last November, FMO approved a $90-million credit package for leading agribusiness Loc Troi Group.