'Shrimp King' Minh Phu proposes research center in Vietnam's Mekong Delta

Minh Phu Seafood Corporation, Vietnam’s leading shrimp exporter, has proposed developing a shrimp research center in the Mekong Delta province of Ben Tre.

At a recent working session with provincial leaders, Minh Phu CEO Le Van Quang said the corporation plans to cooperate with Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO), partners and domestic scientific research units to build the Vietnam Shrimp Research Center covering 50 hectares.

The center will include laboratories, experimental farming areas, and vocational training facilities for shrimp farmers, he said.

Minh Phu will cooperate with CSIRO and other partners to develop, test and transfer commercial shrimp cultivation processes with high economic efficiency and sustainability, helping to increase the competitiveness of Vietnamese shrimp farming in the international arena, Quang added.

The center’s experimental shrimp farming system is expected to help Minh Phu evaluate the ability of indigenous shrimp varieties to develop and withstand adverse weather conditions.

Minh Phu also plans to build a 300-hectare high-tech shrimp farming area in Binh Dai district, and a shrimp processing factory in Ben Tre province, he said.

According to Quang, the price of Vietnam's raw shrimp is higher than other countries in the region because the successful farming rate in Vietnam is low, below 40%. One of the reasons for productivity and production in the country is the uneven breeding quality and the absence of disease-resistant varieties.

“Therefore, the promotion of research and production of high-quality shrimp varieties in a closed chain also aims to improve quality, reduce costs, and raise the competitiveness of Vietnam's shrimp industry,” he noted.

Chairman of Ben Tre province Tran Ngoc Tam said the locality is ready to provide maximum support for Minh Phu Corporation to build its shrimp research center, and the high-tech farming area and processing factory.

Minh Phu, registered on the unlisted public company market UPCoM as MPC, reported an after-tax loss of VND95 billion ($4.05 million) in Q1, its first loss since the beginning of 2017.

Its net revenue hit VND2.12 trillion ($90.5 million) in the period, half compared to the same period last year, and the lowest revenue since the beginning of 2020.

As of March 31, 2023, Minh Phu's assets had reached VND9.5 trillion ($405.2 million), down 10% compared to the beginning of the year. Of which, short-term assets were VND6.4 trillion ($273 million), accounting for 67%. Inventories stood at VND4.74 trillion ($202.2 million).

Liabilities decreased by VND1 trillion compared to the beginning of the year to VND3.83 trillion ($163.33 million).

Minh Phu has been Vietnam’s largest shrimp producer and exporter for several years. Based in the Mekong Delta’s Ca Mau province, the company has in recent years focused investments on upgrading shrimp farming technology. Its main export markets are the U.S., EU, Australia, New Zealand, Japan, and Canada.

On the stock market, the MPC price hit VND18,400 ($0.78) on Wednesday.