At Tanafarm shrimp farm, owned by Sao Ta Foods Company (Fimex VN) and located in Tan Nam hamlet, Vinh Tan commune, Vinh Chau town, Soc Trang province, the total farming area currently reaches 540 hectares, enabling the company to achieve 30% self-sufficiency in raw materials for 2024.
In 2024, Fimex VN impressed the market with revenue growth of 36% and net profit increase of 40%, despite industry challenges, thanks to its specialized shrimp farming processes and advantages in shrimp seed supply, feed, and value-added processing.
“All reputable new shrimp farming models have been immediately tested by Fimex VN over the past decade. We have never hesitated to invest when deemed necessary and rational.” said Mr. Ho Quoc Luc, Chairman of the Board of Directors at Sao Ta Foods Joint Stock Company (Fimex VN).
Along the breezy East Sea coast, Vinafarm shrimp farming area (located in Khom Bien Tren hamlet, Vinh Phuoc ward, Vinh Chau town, Soc Trang province) spreads extensively with neatly arranged shrimp ponds. Here, shrimp stocked off-season have been growing steadily for over a month. Only companies with solid expertise dare to stock shrimp during this period due to the unpredictable weather in late 2024. Unexpected rainfall and significant temperature differences between day and night have been continuous. Two years ago, this farming area was abandoned.
“In 2024, Vinafarm produced 5,000 tons of commercial shrimp and provided stable employment for 300 workers,” Mr. Ho Quoc Luc, Chairman of Sao Ta Foods Joint Stock Company, told Forbes Vietnam in late January 2025. In 2024, Fimex VN harvested nearly 12,000 tons of shrimp from farms located in Soc Trang province, achieving 30% raw material self-sufficiency amidst global shrimp industry price fluctuations and supply disruptions.
The Soc Trang-based company is among Vietnam’s top four largest shrimp exporters, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). Fimex VN ranks behind Stapimex and Minh Phu in revenue but surpasses them significantly in profit during a challenging year for the shrimp sector. According to Phu Hung Securities, Fimex VN also boasts the industry’s highest success rate in shrimp farming at 85% and raw material self-sufficiency rate exceeding 20%.
According to Fimex VN’s unaudited consolidated financial statements for 2024, the company’s revenue surpassed USD 250 million (over VND 6.9 trillion), with a net profit exceeding VND 422 billion, up 36% and 40%, respectively, compared to 2023. These figures mark the highest in the company’s 30-year history, signifying a return to the growth trajectory before 2023, leveraging advantages in farming and deep-processing capabilities in shrimp and agricultural products.
Vietnam’s shrimp industry has faced several “reverse” problems for many years, including unfavorable weather conditions, stiff competition, low international market prices, and looming anti-dumping lawsuits, resulting in reduced competitiveness against Ecuador and India.
Shrimp production costs in Vietnam ranging between USD 3.5–4.2/kg for 50-sized shrimp, higher than in India (USD 2.7–3/kg) and Ecuador (USD 2.2–2.4/kg). This cost disparity is due to Vietnam’s dependence on imported shrimp brood stock and feed ingredients, low farming success rates due to weather impacts, fragmented farming scales, and limited mechanization.
FPT Securities cited a VASEP survey indicating Vietnam’s average shrimp survival rate at around 35%, significantly lower than India and Ecuador, which recorded rates of 47% and 80%, respectively. Export-oriented enterprises with low raw material self-sufficiency must purchase shrimp externally at 20–25% higher prices, further elevating production costs.
The 203-hectare Vinafarm area, operated by Vinh Thuan Co. Ltd., a subsidiary of Fimex VN, began full-scale stocking in June 2023, after six months of land acquisition from previous owners, area rehabilitation, and new pond system investment.
At Vinafarm, Fimex VN continues applying probiotics shrimp farming, similar to other ASC and BAP-certified farms. This method employs two probiotic types: the first occupying pond bottoms to prevent harmful bacterial growth; the second aiding shrimp digestion. Fimex VN has trialed this method at Tanafarm (Vinh Chau town, Soc Trang province) since 2018, following a severe disease outbreak between shrimp industry-wide from 2010 to 2015. “At that time, shrimp would suddenly die en masse after just one month of growth, causing significant distress and bankruptcy among shrimp farmers.
Dr. Tran Huu Loc, a lecturer at Nong Lam University of Ho Chi Minh City, later identified the cause as Acute Hepatopancreatic Necrosis Syndrome (AHPND) and developed a treatment protocol.
Fimex VN’s experience emphasizes investing substantially in water sterilization processes, allowing sufficient settling to minimize microsporidia contamination. Alongside this, the company prioritizes strict biosecurity measures, encompassing not only shrimp health and water purity but also cleanliness of personnel, tools, equipment, vehicles, and preventing contamination from external factors (such as birds, crustaceans, and reptiles) entering shrimp farming areas. Shrimp ponds occupy just 25% of the area, with the remainder dedicated to comprehensive water treatment and waste management systems.
Monitoring must be conducted daily, and the company must maintain detailed weekly data tracking shrimp growth progress.
Among the critical factors, sourcing shrimp seed from reliable suppliers is paramount. Fimex VN addressed this by conducting a private placement of over 6.5 million shares to CP Vietnam Food Joint Stock Company—the company’s shrimp seed supplier—in October 2021, raising CP’s ownership stake to 24.9%. This deal injected nearly VND 330 billion into Fimex VN, partially financing the acquisition of the Vinafarm facility.
The shrimp farming success rate at Fimex VN consistently exceeds 85%, and in some seasons even higher, evident through minimal pond losses, high shrimp seed recovery rates, and above-average growth speed. When asked why other farms applying similar solutions often achieve differing outcomes, Mr. Luc explained: “Shrimp farming is inherently unpredictable.” He emphasized that a combination of seed quality, weather conditions, water quality, and particularly caretakers’ expertise creates numerous variables. “The critical difference lies in the mindset and skill of the farm manager. They must be flexible, responsive, eager to learn, and adept at selecting suitable solutions,” Mr. Luc emphasized.
Dr. Nguyen Thi Hong Minh, Chairwoman of the Transparent Food Association and former Deputy Minister of Fisheries, expressed admiration for Fimex VN’s probiotic shrimp farming technology. Achieving an impressive yield of 12,000 tons of commercial shrimp on approximately 550 hectares, averaging about 20 tons per hectare per two crops, positions Fimex VN among the nation’s leaders in shrimp output, according to Dr. Minh.
Currently, probiotic farming is widely popular, supported by numerous manufacturers offering various probiotic strains. However, Fimex VN produces its own probiotics in large quantities at approximately VND 15,000 per liter—significantly cheaper than market prices. Local production ensures the probiotics are healthy and adapted to the farm environment.
The acquisition of Vinh Thuan in 2022 nearly doubled Fimex VN’s farming area, allowing it to achieve its expansion goals two years ahead of schedule. Fimex VN currently farms 540 hectares. According to Mr. Luc, the success of the new farming area contributed significantly to the company’s positive performance in 2024, lowering shrimp production costs and enhancing customer trust through stringent quality control from the initial stages.
The development of artificial intelligence (AI), big data, and the Internet of Things (IoT) technologies is significantly transforming the agricultural sector, including shrimp farming. New technological advancements are enabling farm management, controlling water quality, and optimizing pond conditions to reduce costs and enhance productivity. For example, acoustic sensors can determine shrimp hunger levels, enabling automated feeding systems; water-quality probes relay critical environmental data to a central control hub.
With just a smartphone, farmers can remotely manage shrimp feeding, monitor water parameters such as alkalinity, salinity, and temperature, and make prompt operational decisions. Investment for a single hectare of shrimp farming could reach between VND 5 to 7 billion, including infrastructure, water treatment systems, and specialized equipment.
Mr. Ho Quoc Luc, who holds a doctorate in economics, emphasized that Fimex VN has consistently tested reputable shrimp-farming models for over a decade, “never hesitating to invest when deemed necessary and rational.” Nevertheless, Fimex VN remains committed to its distinct cultivation method, differing significantly from conventional intensive farming practices. Specifically, the company employs single-phase probiotic farming combined with partial harvesting, stocking shrimp at densities up to 300 shrimp per square meter and harvesting multiple times at shrimp sizes of 70, 50, 40, and 30 shrimp per kilogram before the final harvest.
Fimex VN shareholders often seek collaboration in shrimp farming. “They are strategic shareholders but simultaneously Fimex VN’s ‘competitors’,” Mr. Luc remarked semi-jokingly. He further explained that the company proactively embraces technological innovations with a practical mindset, balancing technological application with human expertise because “machines cannot yet outperform human, especially when we have so many highly skilled engineers.” For instance, instead of using sensors placed directly in each pond—which are susceptible to damage in saline water – Fimex VN’s engineers manually collect daily water samples. These engineers also determine shrimp feeding quantities based on practical experience.
“For example, if shrimp consumed ten kilograms of feed yesterday, but today is cloudy and shrimp appetite decreases, feed quantities must be reduced by 20-30%,” Mr. Luc explained. Additionally, retaining highly qualified engineers through appropriate salaries and incentives is crucial. Fimex VN maintains full-time engineering staff at all its farms, a practice uncommon among smaller shrimp farms.
Investment in shrimp farming technology is justified but requires strategic flexibility. Fimex VN leadership analyzed that technology effectively pays off only under stable external conditions and large-scale operations that provide sufficient data inputs for AI analysis. Shrimp farming is continuously challenged by new diseases and environmental factors such as wind direction, humidity, and salinity, while Vietnamese farms are mostly small and fragmented.
High technological investment can push production costs upwards, eliminating competitive advantages, especially if the implementation lacks consistency, potentially becoming a financial drain.
Dr. Nguyen Thi Hong Minh, Chairwoman of the Transparent Food Association and former Deputy Minister of Fisheries, noted that shrimp companies have long applied technological and scientific innovations in farming and processing. Prominent among these is Biofloc technology, widely used to stimulate beneficial microbial growth, producing biofloc particles rich in protein, lipids, and organic compounds, thus providing natural nutrition for shrimp and fish. Additionally, intensive shrimp farming with high stocking densities, aeration systems, and automated water filtration enhances productivity significantly.
Meanwhile, digital technologies, including remote sensing for oxygen, salinity, and temperature, provide substantial operational benefits. However, such advanced solutions have predominantly been adopted by larger companies possessing extensive farming areas, substantial technical capabilities, and financial resources—primarily concentrated in the Mekong Delta and several southeastern and central coastal provinces.
At nearly 70 years old, the Labor Hero Ho Quoc Luc, brother of engineer Ho Quang Cua (creator of the famous ST25 rice), remains energetic and charismatic, characteristic of a typical southern Vietnamese entrepreneur. During his interviews with Forbes Vietnam, he sometimes called during lunch, humorously noting he “forgot his stomach pain while talking.”
Having led Sao Ta (formerly known as Fimex VN) since its establishment under the Finance and Management Board of Soc Trang Provincial Party Committee, Mr. Luc has witnessed key milestones in the company’s 30-year history, such as its privatization (2003), stock market listing (2006), and major shareholder shifts in 2012 and 2017. The first significant shift occurred in 2012 when Hung Vuong Corporation, led by entrepreneur Duong Ngoc Minh, gained controlling shares in Fimex VN, supporting raw material expansion. In 2017, The PAN Group replaced Hung Vuong as the major shareholder, integrating Fimex VN into its diversified agricultural ecosystem and offering new strategic advantages.
In 2024, Vietnam’s shrimp exports reached nearly USD 3.9 billion, growing by approximately 15% compared to 2023, according to VASEP. Vietnamese shrimp exporters maintain strong market positions in Japan, South Korea, and the EU through their reputation, product quality, and value-added processing capabilities.
According to research from Boston Consulting Group, Vietnamese enterprises use on average only about 1.7 kilograms of raw shrimp material to produce one kilogram of processed shrimp, whereas Indian enterprises require approximately 2.1 kilograms. Despite higher farming costs, Vietnam maintains competitive pricing for processed shrimp internationally due to its skilled, meticulous, and relatively low-cost labor force.
VASEP evaluated Vietnam’s shrimp export value of USD 3.9 billion in the past year as a commendable achievement amid numerous challenges, such as frequent disease outbreaks due to inconsistent shrimp seed quality and deteriorating water sources. Shrinking supply led to a significant domestic shrimp price hike starting in the third quarter of 2024, severely impacting processing businesses. Additionally, difficulties stemming from two major legal cases—Anti-Dumping (AD) and Countervailing Duty (CVD)—in the crucial U.S. market forced companies to set aside substantial financial provisions.
According to Mr. Luc, Fimex VN has faced these same issues. Despite achieving good yields, Fimex VN’s farms produced smaller-sized shrimp with lower prices and higher costs due to increased disease prevention measures. The company also had to allocate tens of billions of VND in reserve funds to cover potential taxes, negatively affecting profitability.
Nevertheless, Fimex VN compensated for these losses through its deep-processing segment, enhancing product value. Particularly, Khang An Foods, a subsidiary of Fimex VN founded in 2021 specializing in ready-to-eat shrimp and agricultural products, has emerged as a key growth driver for the company.
In 2024, Khang An recorded its initial successes with USD 82 million in revenue, including USD 6 million from agricultural products—representing a 50% increase compared to 2023, according to Mr. Luc. Overall, Khang An contributed half of Fimex VN’s total profit. “Our subsidiary, Khang An, launched new products with attractive pricing and significantly boosted sales in Q4 of 2024, helping drive our consolidated net profit up by 111% compared to the previous year,” explained Fimex VN ‘s consolidated financial report.
Besides Khang An, Fimex VN operates five processing factories, manufacturing products ranging from basic frozen shrimp (IQF shrimp, stretched shrimp) to further processed items (steamed shrimp, breaded shrimp, fried shrimp). Compared to competitors, Fimex VN maintains a competitive edge in fried shrimp products such as shrimp tempura and mixed fried agricultural and seafood products.
Khang An strategically leverages Fimex VN’s longstanding strength in advanced processing, targeting premium markets and continuously launching innovative products to secure high selling prices and profit margins. The U.S. currently accounts for 40% of shrimp sales, while the UK holds 47%. For agricultural products, Japan is the leading market with a 75% share. To support its subsidiary, Fimex VN not only provides loan guarantees but also leverages its extensive “dual-use” customer network.
“Although Khang An’s current agricultural product revenue is modest in absolute terms, it represents the future for Fimex VN,” Mr. Luc acknowledged. He admitted the company still relies on foreign partners for contract processing, as it currently lacks the branding strength and financial resources necessary to develop its own distribution networks and execute marketing and promotional activities in overseas markets.
