'Shrimp King' Minh Phu plans to expand domestic market share

More than 99% of Minh Phu's shrimp sold each year is exported, so the company plans to increase its "coverage" in the domestic market when bringing its products to supermarkets.

This was shared by Mr. Le Van Quang - Chairman of the Board of Directors and CEO of Minh Phu Seafood Corporation, on the sidelines of the cooperation signing ceremony with Bach Hoa Xanh on March 26, in Ho Chi Minh City.

Minh Phu Seafood Corporation, founded in 1992, is the largest shrimp exporter in Vietnam. Chairman Le Van Quang revealed that over the past 30 years, he has tried to bring his products to domestic supermarkets many times, but was mostly rejected because of the high price of Minh Phu shrimp. However, according to him, if compared to quality, the company's prices are "reasonable for the cost".

This partly explains why, each year, the company sells about 50,000 tons of shrimp, but more than 99% is exported, only 0.5% is consumed domestically. "The domestic market share is difficult to "expand" because consumers do not dare to pay for quality products," he said. Currently, Minh Phu's export shrimp prices are 10-20% higher than domestic retail prices.

However, the "shrimp king" said it was time for them to "return home" by cooperating with retailers, bringing quality products (free of banned substances or antibiotics) and reasonable prices to consumers.

"We hope this "handshake" with Bach Hoa Xanh will help the business increase its market share in the domestic market," said Mr. Quang, adding that he will "cover" the product in many different channels to increase market share by 5-10%.

Shrimp weighing 30 pieces per kilogram are being sold at Bach Hoa Xanh for 165,000 VND. Photo: Linh Dan — Minh Phu's 30-per-kilo shrimp sold at Bach Hoa Xanh supermarket chain. Photo: *Linh Dan*

This company also applies MPBiO biotechnology (no antibiotics or chemicals) that they researched and developed into shrimp farming. This technology does not consume much electricity or water and helps them reduce 50% of farming costs and prices.

Thanks to that, Minh Phu's shrimp sold in the domestic market has the same quality as the export standards of Japan, the US and the EU. The price is the same or lower.

After six months of trial sales, the Bach Hoa Xanh chain sold more than 1,300 tons of Minh Phu shrimp, earning about VND220 billion. This year, the company aims to sell 3,000 tons, earning VND500 billion in revenue at its 1,700 supermarkets.

"Previously, good products were often exported, but now we do the opposite, bringing the freshest, highest quality products to serve Vietnamese people," said Mr. Pham Van Trong - CEO of Bach Hoa Xanh. Minh Phu's fresh shrimp products are sold at this system for 186,000 VND (30 pieces) per kilogram.

Minh Phu Shrimp is supplying to more than 50 countries, with a revenue of over 10,000 billion VND per year. Increasing exports and finding a foothold in the domestic market, the "king of shrimp" aims to grow 50% compared to the same period last year and return to profit.

Thi Ha

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