Investment in aquaculture in Vietnam has great potential for development due to its geographical characteristics, such as:
- A coastline spanning over 3,260 km.
- Ownership of 112 river mouths and estuaries that are rich in potential for both freshwater and saltwater aquaculture.
- A diverse system of rivers and streams, with 15 rivers having a basin area of over 300 km2.
- Thousands of islands scattered along the coast that provide year-round opportunities for aquaculture development.
- Aquaculture has evolved from a supplementary and self-sustainable industry to a primary production sector with advanced technology, comparable to other economic sectors.
With strong development prospects, not only domestic investors but also foreign investors are increasingly interested in the aquaculture sector in Vietnam.
- Overview of the aquaculture investment market in Vietnam
Vietnam aims to achieve an export turnover of USD 800,000 – 1 billion by 2025 in the aquaculture sector. This will be a significant contribution to the country’s total aquaculture production, accounting for over 25%. By 2045, the projected export turnover is expected to exceed USD 4 billion, which is an impressive figure.
To achieve the set goals, Vietnam requires large investment deals, especially from foreign organizations. Currently, FDI investors primarily focus on supplying breeding stock and animal feed. The demand for these inputs is predicted to increase, providing more opportunities for foreign investors.
Investors from Bac Ur are not the only ones investing in Vietnam’s aquaculture sector. Charoen Pokphand (CP) Group from Thailand has invested in farms and feed production facilities for shrimp, the highest-value exported product of Vietnam. Chinese companies are also cooperating and investing in shrimp processing plants in Vietnam. The aquaculture industry in Vietnam has been continuously developing for the past 20 years, and with foreign capital inflows, this sector promises even further growth.
- Foreign Direct Investment (FDI) in Aquaculture in Vietnam
Livestock Fish Feed
Competition for Foreign Direct Investment (FDI) in Vietnam’s aquaculture industry primarily focuses on the animal feed market. In addition to domestic fish feed suppliers, foreign suppliers have captured a significant market share. FDI investors contribute significantly to the animal feed market through their production standards and cost-effective strategies.
Breeding Stock
FDI investors also have a significant impact on the breeding stock sector. Breeds such as whiteleg shrimp, giant river prawn, etc., have been developed and gained popularity. At the same time, they contribute to diversifying Vietnam’s aquaculture product portfolio.
Seafood Processing
This is an area where FDI enterprises have a competitive advantage over domestic companies. FDI enterprises have advantages in terms of production quality. Additionally, their access to capital is much more feasible.
- Vietnam’s policy of attracting foreign investment
Understanding the importance of attracting foreign direct investment (FDI) in the aquaculture sector, Vietnam has implemented favorable policies to simplify administrative procedures for FDI transactions.
Vietnam is demonstrating support for the sector’s development through various means, such as:
- Integrating green technologies, conducting research, and increasing productivity.
- Training the workforce.
- Negotiating and implementing trade agreements with major markets.
This industry has shown impressive growth trends and has proven itself to be a key player in the country’s economy.
However, FDI investors should also be aware of the challenges that this sector faces, particularly concerning the EU’s requirements for legal fishing practices. With careful preparation, investors can fully benefit from their investments and earn profits.
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
