Hanoi (VNA) – Amid intensifying competition from leading producers such as Ecuador and India, the shrimp industry of Vietnam is under growing pressure to reposition its strategy, shifting from price-based competition to higher value, stronger technology application and deeper supply chain integration.

Vietnam is among the world’s largest shrimp suppliers, exporting to more than 100 markets and accounting for over 40% of the country’s seafood export turnover. However, recently, Ecuador has emerged with a clear low-cost advantage, while India maintains leadership in production scale.

Nguyen Duy Hoa, Deputy Technical Director of Cargill Vietnam, said Vietnam cannot compete with Ecuador on costs nor match India in scale. Instead, the country should focus on value rather than volume or price competition, prioritising quality improvement, technology adoption and value-added products.

Feed costs remain one of the industry’s biggest challenges, accounting for 50–60% of production expenses. According to Hoa, feed should no longer be viewed merely as a cost, but as a profit-generation tool. Optimising feed conversion ratios (FCR), increasing the use of domestic raw materials and diversifying nutritional sources, including plant-based ingredients such as soybeans, could help ease cost pressures and improve efficiency.

However, the sector’s challenges extend beyond input costs. Production remains fragmented and weakly linked, while high-density farming complicates disease control. Product quality is uneven, and the value chain spanning broodstock, feed, farming, processing and distribution remains loosely connected. These structural weaknesses continue to limit the industry’s sustainable competitiveness.

Experts therefore called for a comprehensive strategy built around clear pillars. Improving shrimp genetics to develop disease-free, disease-resistant breeds is considered a top priority. “Survival rate matters more than productivity” has increasingly become a guiding principle, reflecting a shift from volume-driven growth toward efficiency and risk reduction.

At the same time, technology adoption is becoming indispensable. Models such as Biofloc and Eco-RAS systems, alongside the integration of IoT and artificial intelligence, are helping producers better manage farming conditions, reduce fluctuations and improve survival rates. Beyond technical benefits, these technologies also strengthen production governance.

Trinh Trung Phi, Deputy General Director for Technology and Commercial Shrimp at Viet-Uc Group, said shrimp farming is no longer simply about pond management, but about managing risks across the entire value chain. Broodstock quality, hatcheries, biosecurity, environmental control and early detection systems all need to be managed in an integrated manner.

The industry’s goal, he noted, is no longer just to produce shrimp that survive and grow, but shrimp that are healthy, uniform, cost-efficient, traceable and capable of meeting increasingly strict international standards. Achieving this will require coordinated changes from farmers, businesses and regulators alike.

Experts also advised producers to pay greater attention to processing and branding, which are also seen as crucial to increasing value. Market strategies also need clearer segmentation, they added.

The Vietnam Association of Seafood Exporters and Producers (VASEP) said that as Ecuador and India continue expanding low-cost production, Vietnam’s shrimp industry must rely on quality, traceability, deep processing and premium positioning. In 2026, the sector’s resilience will depend on its ability to maintain stable markets, manage risks in the US market and move further up the global value chain.

Nguyen Van Long, Director of the Department of Science and Technology under the Ministry of Agriculture and Environment, said investment in breeding research, input material self-sufficiency and environmental treatment solutions would form the foundation for sustainable growth.

He added that many countries are rapidly applying AI in aquaculture to monitor growth, detect risks early and optimise production, a direction Vietnam needs to accelerate as part of its digital transformation.

Alongside farming improvements, harvesting and processing technologies also need upgrading to enhance added value. When shrimp products evolve from raw materials into branded goods with standards, traceability and compelling stories, Vietnamese shrimp will not only maintain market share but also strengthen its position on the global seafood map./.