MGMT 624 International Agribusiness Systems: Vietnam Shrimp Farming

MGMT 624 International Agribusiness Systems

Vietnam Shrimp Farming

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Executive summary

It is the study of shrimp farming identifying its impact in Vietnam that significantly impacts the country’s environment and economy as Vietnam contributes around 11 billion USD because of which it is one of the top seafood exporters globally. The contribution of the country to the global export is approximately 14%. There is depth information about the global shrimp market and Vietnam market to identify the customer's experience and interest in buying these products. The report explains the role of the Vietnamese shrimp farming industry in the global context in detail along with presenting graphs for the clarification of the topic. The production statistics and export figures are mentioned in the report which explains the production volume of farmed shrimp in Vietnam. The major regions for shrimp farming were identified in the report that constitute the Mekong River Delta. After this, the focus of the report is transferred to the market trends that influence the shrimp farming market. The current status of this industry is recognized by the figures of production and export systems in this industry. Some key challenges and opportunities in this industry are analysed in the report which included problems like contaminated water, impact on the environment, impact on the economy and diseases in shrimp among many other challenges. However, the report also mentions some of the mitigation strategies that could be proven helpful in solving these challenges. The mitigation strategy included a biosecurity plan, increasing resilience in shrimp, strategies for mitigating economic problems and other strategies as well. SWOT analysis in the report gives a brief yet informative idea of the shrimp farming industry. Porter’s Five Forces theory is also explained in detail in context to the Vietnamese shrimp farming industry which helps in identifying the threats of new entrants, bargaining power of suppliers and buyers, threat of substitute products and industry rivalry.

List of figures

1. Introduction

1.1 Importance of shrimp farming in Vietnam’s economy.

Shrimp farming is known as aquaculture in freshwater or marine environments. It is developed in the seafood industry and aims to produce prawns and shrimp for individual consumption. Vietnam has a well-known position in the shrimp market globally with amazing export figures. Vietnam country also recorded approximately 11 billion USD in export turnover in 2022. This figure made the country one of the best and top seafood exporting countries globally. Additionally, shrimp farming and exports are also estimated as a significant part of the seafood industry in Vietnam (Agroberichten Buitenland, 2023). The country also has become the second largest supplier contributing approx. 13 to 14% to the shrimp export value globally. In 2023, the country also planned to increase approximately 750 thousand hectares of shrimp farming area, with targeting the export turnover above 4.3 million USD. It aims to increase approx. 12.5 to 14 billion USD as seafood export turnover by 2025.

1.2 Overview of the global shrimp market and Vietnam’s position.

According to the MARD (Ministry of Agriculture and Rural Development), the estimation of 2024 in seafood exports was approx. $ 5.29 billion. It is the second highest rank with this export value in the global agriculture sector. Shrimp food export value also generated approx. $ 2 billion which was a 7.5% rise this year. The industry maintained its position as the top product that is popular among a large number of customers and within the seafood industry (Uyen, 2024). The VASEP (Vietnam Association of Seafood Exporters and Producers) forecasts effective or robust growth in the export of shrimp to the EU and US markets. Vietnam shrimp is exported in approximately 100 territories and nations that rank among the top three countries known for shrimp exports internationally.

2. Industry Analysis

2.1 Current State of the Industry

Figure 1: After a strong 2022, the global shrimp supply will be flat or slightly lower in 2023; but a return to growth is expected in 2024.

Source: (Jory, 2023)

Figure 2: The black tiger shrimp comeback continues across Asia.

Source: (Jory, 2023)

Both the figures are the result of the global shrimp aquaculture production survey and forecast reports from the seafood cooperation internationally. According to this survey result the first figure indicated that in 2023 global shrimp farming and production was slightly lower down to 0.4% which was identified as approximately 5.6 million metric tonnes in 2022. However, the current state of this industry is identified as increased by 4.8% in 2024 with the shrimp farming production value approx. 5.88 MMT (million metric tonnes) (Jory, 2023). The second figure indicated that the black tiger shrimp production continues the strong comeback in several nations and territories like Asia led by India, China, Vietnam, and Indonesia. It is identified through goal survey results that the black tiger shrimp production will increase by 7.8% in 2024 across Vietnam with a strong comeback.

Furthermore, according to the Shrimp Tech Vietnam project that was launched in 2020 with has two phases for industry development across the nation. The project initiative aims to achieve net Xero emissions while having robust shrimp production in Vietnam. The first phase focused on sustainable practices integrating shrimp farming with the local nation’s environment that was feasible for local farmers (Morgan, 2024). Additionally, the second phase known as “shrimp tech Vietnam 2.0” aims to implement real shrimp farming to achieve a sustainable industry of shrimp farming from 2023 to 2026. However, the current ways of shrimp farming are identified as damaging and unsustainable and are accountable for the lack of best practices of farming by the local farmers who are still not aware of broader issues related to environmental management and market developments.

2.2 Production statistics and export figures.

Figure 3: Farmed shrimp production volume Vietnam 2015-2023

Source: (Nguyen, 2024)

Figure: 3 represents the shrimp farming production volume in Vietnam for the years 2015 to 2023. As per the given figure, the manufacturing volume of shrimp is identified as reaching 1.21 million metric tonnes in 2023 (Nguyen, 2024). The volume of aquaculture shrimp is produced across the nation with the rapidly increased and estimated as to keep growing in upcoming years. Furthermore, it has also resulted that the aquaculture shrimp in Vietnam is focused mainly in the Mekong River delta provinces in the nation.

Figure 4: Top producing countries of giant tiger prawn (Percent of global production)

Source: (Monterey Bay Aquarium Seafood Watch, 2024)

Figure 4 represents the data about producing the giant tiger prawn a type of shrimp in top countries. According to the given figure Vietnam is identified as producing approx. 35% giant tiger prawns of which 61% are yellow, 30% red, and 9% are certified (Monterey Bay Aquarium Seafood Watch, 2024). It is the top country for producing shrimp prawns in the majority. However, there are some areas of improvement for the nation to demonstrate environmental sustainability in the shrimp industry through rating programs or eco-certification.

Figure 5: Vannamei shrimp achieved high output in May 2021

Source: (General statistic Office, 2021)

As per the given figure, Vietnam currently has tech shrimp farming in more than 200000 hectares, as the whole industry had set a target of having the brackish water in 740000 hectares of farming area in 2021 with approx. 4 billion USD export turnover and output of 930000 tonnes (General Statistics Office, 2021). Shrimp export turnover is estimated to achieve the goal of 10 billion USD in 2025 across the nation.

2.3 Major regions for shrimp farming (e.g., Mekong Delta).

The Mekong River Delta is widely identified as the top region for shrimp production from freshwater and brackish aquaculture in Vietnam. The farmers most like this place for fisheries and aquaculture due to its favourable and advantageous environmental conditions, abundant resources, and vast water surfaces and areas. In 2022, the total shrimp farming has reached 747,000 hectares in the Mekong River delta, of which white-legged shrimp farming is done in 117 thousand hectares, and black tiger shrimp farming has reached 610-thousand-hectare area (Agroberichten Buitenland, 2024). Additionally, approx. 220000 farms for shrimp aquaculture were distributed with diverse shrimp farming models and 8 coastal provinces.

3. Market trends

3.1 Increasing global demand for shrimp.

The global demand for shrimp is estimated as increasing from 64.8 $ billion in 2024 and 149 $ billion in 2034. Additionally, the shrimp industry also registered a CAGR rate of approx. 8.3% in 2023. According to the market analyses shrimp food is considered as a high source and low fat of protein that has become the popular choice for consumers who are health conscious. As several individuals have a significant awareness of shrimp benefits that impact positively on their health, the shrimp demand in the global market continues to grow (Future Market Insights, 2024). The white leg shrimp market share is identified as 43% in 2024, while the segment of frozen shrimp represents a significant 37% market share in 2024.

Figure 6: Country-wise insights

Source: (Future market insights, 2024)

Figure 7: Asia Pacific Shrimp Market Size, 2019 to 2032

Source: (fortunate Business Insights, 2024

As per the given Figure 7, it is identified that the market size of the Asia Pacific shrimp market was 14.46 USD billion in 2022 which increased to 15.42 USD billion in 2023. It is estimated to rise in the next years till 2032 with effective market cost and production. Asia Pacific is identified as the leading manufacturer of shrimp across the globe. However, there was a decrease in demand in the year 2020 from different Asian countries like Vietnam, China, Thailand, and India, which negatively affected the shrimp market growth (Fortunate Business Insights, 2024). On the other hand, at the beginning of 2020, the flexitarian trends are adopted by a wide range of global customers. They are identified as adopting the vegan diet but also include sustainability-based seafood to get extra protein in their food.

3.2 Growth of organic and sustainable seafood markets.

In 2022, the demand for sustainable seafood was USD 16845.2 million, which is estimated to reach at approx. USD 26048.78M in 2030. It is also expected to rise at a 5.60% CAGR between 2023 and 2030. During the period of estimation, the eco-friendly packaging of seafood is determined and estimated to have the highest CAGR rate. The North American regions are identified as directing the seafood market follows the trends of sustainability. Asia Pacific is recognized as having the second largest area to export and deliver sustainable seafood in its market (Credence research, 2023). Furthermore, it is also identified that environmentally friendly restaurants delivering sea foods, innovative aquaculture, sustainable fishing, and sustainable packaging generate eco-friendly market opportunities for seafood businesses. The sustainable seafood market is identified and estimated to have been increasing rapidly between 2023 to 2030. It is also anticipated to increase with a CAGR rate of 5.60%.

Figure 8: Sustainable seafood market: market insights

Source: (Credence research, 2023)

The seafood market globally is getting a stable rise with a wide range of customer awareness with increasing health consciousness and sustainability in their food choices. The market growth and size of seafood products are increasing with its potential health benefits and eco-friendly practices. Furthermore, the global customer requires products free from chemicals and synthetic additives with have great nutritional value. The focus on health and well-being has become the major factor in developing the seafood market industries across the globe such as Vietnam shrimp farming (Credence research, 2023). The organic seafood market has higher demands on a wide range of industries like catering services, restaurants, meal delivery companies, and others. On the other hand, government regulations and customers' preferences based on their regions are also affecting the geographical distribution in terms of consumption of organic seafood. Organic sustainability is developing rapidly, especially in the coastal regions with local organic seafood and higher customer demands (Yue & Shen, 2022, p. 116 (3)). There is also intense competition between the seafood industries which majorly focus on delivering their seafood product quality, transparent labelling, and sustainable seafood practices to gain their customers' trust.

4. Porter’s Five Forces

This framework was developed by Michael Porter in 1979 in an article published in the Harvard Business Review. This framework helps in understanding the attraction of the industry (Isabelle et al., 2020, p.1). It is considered a fundamental tool for the analysis of strategic plotting that provides a competitive landscape for the industry. This report will focus on the application of Porter’s Five Forces in Vietnam Shrimp Farming. This framework is used for the identification and analysis of the competitive forces of the industry. It is a resource-based theory that talks about the five forces that can potentially generate barriers in the business environment (Anastasiu et al., 2020, p.4). The five forces defined and discussed in this framework include the threat of new entrants in the industry, the bargaining power of the supplier, the bargaining power of the customer, and the capability of consumers to substitute the products.

Porter’s five forces theory could be applied to the Vietnamese shrimp industry as it helps analyse the landscape for gaining a competitive advantage and developing strategies. It would help the Vietnamese shrimp industry by assessing the factors of the industry that help attract its consumers. It would also help the industry adjust its strategy to improve profitability. It would help the industry prepare itself if an alternative of shrimp gets introduced in the market. It would introduce the concept of supplier and buyer power and the effective ways to deal with the issues created.

However, this theory does not give all the benefits to the industries that apply it in their sector. For example, using this, the shrimp industry could be at a loss as it does not consider the importance of any external factors, which could invite a disadvantageous situation for the industry. It also does not consider the interaction and feedback loops, not it accounts for the diversity of competitive behaviour. The model lacks the importance of the role of innovation that could give the Vietnamese shrimp industry an obsolete view.

Figure 9: The five forces

(Source: Harvard Business School, 2024)

4.1. Threat of new entrants.

Porter’s framework was formed by the explanation of a way that could be used to gain a competitive advantage (Goyal, 2020, p.1). After the industry starts making a profit, they will invite new entrants and if there is less hindrance in their introduction, they are likely to threaten the profit of the already existing companies. The new competitors of a company are much more likely to provide cost-effective alternatives to their customers.

Further, Porter introduced seven different main factors that affect the entrance barriers. These include the supply side of the economy, the effect of the network, switching costs, capital requirements, unjust benefits, unjust access to the channels of distribution and the policies provided by the government.

Porter’s Five Forces Theory is utilized for the determination of the strength of the external factors that affect the industry (Kurhayadi et al., 2022, p.5). Numerous companies invest in diverse industries in Vietnam that provide profit to the industry. The shrimp industry of Vietnam is densely packed, and the capital requirement in the shrimp farming industry in Vietnam differs on the basis of the intensity focused by the farming operation. Extensive shrimp farming roughly requires €12,900-€21,000 per hectare and it goes up to €85,900-€129,000 per hectare in the super-intensive system.

4.2. Bargaining Power of Suppliers

Suppliers are the source of useful inputs that are required for the continuous operation of the industry. The role of the supplier is very important and if the prices of these inputs are increased because of the increase in the bargaining power of their suppliers there is an increased chance of elevation in the charges or the reduction of quality. The power of the suppliers involved in the shrimp farming industry of Vietnam includes the switching of costs, differentiation degree, presence or absence of input substitution, distribution of strength in diverse channels, concentration of suppliers and the solidarity of employees.

4.3. Bargaining Power of Buyers

Porter’s five-force analysis model is considered an important tool for the formation of competitive strategy (Tuoi & Son, 2021, p.4). Buyers are the customers of any industry who directly affect the profitability. The strong influence of buyer power can cause a reduction in the prices of the product along with increasing the quality of their product or services. The shrimp farming industry is highly affected by the bargaining power of their consumers who are especially sensitive towards the prices of their product. This price sensitivity is increased when there are many competitors present in the market, availability of substitution, when the switching costs are considerably low and when the homogeneity of the product is high. The shrimp farming industry can make use of Porter’s Five Forces for a better understanding of the behaviour of their customers and make decisions after the assessment of risks and challenges. It will also allow them the recognize opportunities and the prediction of future trends in the industry.

4.4. Threat of Substitute Product

Michael Porter is often regarded as the father of modern marketing strategies who gave an understanding of competitive advantage for the effective formation of market strategies (Wood et al., 2021, p.2). Every industry faces the competitive threat of better and cost-effective products offered by different industries. With the availability of alternatives, an industry could face some serious outcomes and limitations like not being able to increase their prices even when required. The threat of substitutes faced by the shrimp farming industry in Vietnam is posed by the substitution of species and the increasing popularity of other seafood options. The plant-based substitution of seafood like the ones produced from soy, seaweed and vegetable oils is also causing a great threat to the shrimp farming industry in Vietnam. Environmental concerns like the usage of fish in the feed and the depletion of the stock of wild shrimp have also caused an increased threat of substitution. Major substitutions for shrimp include vegan shrimp, scallops, imitation crab and mushroom-based shrimp analogues.

4.5. Industry Rivalry

Industries' rivalry increases as they compete for the cost, quality and marketing spend. The increase in competition is increased when there are multiple alternatives available to customers to choose from, and there is a very minimal difference between various products or services provided by the industries. In such a situation, the decision made by the buyer is strictly dependent on the cost-efficiency of the products. Porter’s Five Forces Model is applied to identify the industry's external environment (Jelonek et al., 2022, p.2). The major competitors of the shrimp farming industry in Vietnam include India and Ecuador, as they are some of the biggest producers of shrimp in the world and pose a threat in the global market, affecting the global standing of the Vietnamese shrimp industry. According to the senses of 2022, the Vietnamese shrimp farming industry has reached a turnover of $4.3 billion, roughly accounting for 15% of the global exports.

Vietnam is the third largest exporter of shrimp and related products, the main actors involved in this industry are small-scale farmers. However, the production and exportation of shrimp depends on various actors involved in the industry and factors that affect the marketing of shrimp (Nguyen et al., 2021, p.1). The shrimp production depends on various factors that are included in Figure 2.

Figure 10: Organizational arrangements

(Source: Nguyen et al., 2021)

5. SWOT Analysis of Vietnam Shrimp Industry

SWOT analysis is an evaluation tool that helps understand the strengths, weaknesses, opportunities and threats of any business. The report uses SWOT analysis to determine the important factors of the Vietnam Shrimp Industry.

Strength: Strengths of the shrimp industry include its being economical as it generates a considerable amount of profit in Vietnam. It is also environmental and productive.

Weakness: The weaknesses of shrimp farming include the impact it has on the environment making it a cause of ecological imbalance. Climate changes like rain and temperature can severely affect the profitability of the industry.

Opportunities: The Vietnamese shrimp industry can focus on increasing its profit by including new jobs and increasing its overall socio-economic benefits. Organic shrimp farming is also going to be beneficial as it would exclude the usage of antibiotics and it will attract health-conscious and environmentally friendly customers.

Threats: the bad quality of water can lead to a weakened immune system in the shrimps which would increase their mortality rate and would lead to loss in the business. Shrimps are very prone to various diseases which could affect the sustainability of the industry.

6. Challenges and Risks

6.1 Challenges

There are multiple risks involved in the shrimp farming industry that could make the industry challenging. They include:

• Water contamination: the disposal of waste materials in the breeding water and the lack of proper care of the breeding environment leads to the contamination of water, which results in diseases and deficits in nutritional value (Clapano et al., 2020, p.8). One of the major issues in the shrimp farming industry is water quality management. The pH level of water causes stress and difficulty to shrimp and can lead to the generation of softer shells that would decrease the survival rates of shrimp. If the salinity level increases more than shrimp can tolerate, it could enhance their vulnerability towards diseases.

• Impact on the environment: There are numerous negative impacts of the shrimp farming industry on the environment, including ecological imbalances, increased water pollution and disease outbreaks. Shrimp aquaculture is under constant threat of vibriosis, which causes numerous problems like an increase in mortality rate and retardation in growth (Clapano et al., 2020, p.8). Many environmentalists are against shrimp farming for economic gains as they cause a great loss in biodiversity and disturb the balance of aquaculture.

Figure 11: Environmental Impact of Shrimp Aquaculture.

(Source: Macusi et al., 2022)

• Impact on the economy: the social, economic and environmental impact of the shrimp farming industry increases the costs which causes concerns about the viability and desirability of the industry. According to Villarreal (2023, p.2), one of the limitations included in the shrimp farming industry involves the problem of the limited availability of fish oils and fish meals, which hinders the industry's growth. Inaccurate and lack of proper management practices, along with the weaknesses in the institutional practices, could cause harm to the future of the shrimp farming industry in Vietnam. The fluctuations in the prices because of the diversities that are caused by the harvesting seasons, lead to uncertainty in the farmers and could often lead to loss in the industry.

• Diseases: Shrimp are vulnerable to many diseases, and these diseases affect the social conditions of the shrimp farmers, even making them vulnerable to problems like landlessness and poverty (Macusi et al., 2022, p.10). The diseases that are included in shrimp aquaculture are Taura syndrome, infectious hypodermal and hematopoietic necrosis, white spot syndrome, yellow head syndrome, white faeces disease, vibrio infection and infectious myonecrosis virus.

Figure 12: Encountered shrimp diseases (A) and probable cause (B).

(Source: Clapano et al., 2022)

Figure 13: Common diseases and their effects on the various life stages of shrimp.

(Source: Macusi et al., 2022)

6.2 Mitigation strategies

• Biosecurity Plan: To solve the problem of the poor health of shrimps and to eliminate the chances of them being vulnerable towards various diseases shrimp farmers can be involved development of a biosecurity plan which would help them in identifying and preventing these diseases. Aquatic products are significant for nutrition and are a main ingredient in many cuisines which makes it have a high customer demand due to which it is necessary that the production supply is constantly increased in this industry (Subasinghe et al., 2023, p.2). The selection of high-quality shrimp would also ensure the disease-free production of shrimps. Performing microbial tests would help in the same. Controlling the shrimp population, management of the quality of water, usage of proper feed and using antibiotics would lead to the enhancement in the health of shrimps.

• Resilience: Aquatic agriculture is specifically sensitive towards the changes caused by global warming, making it difficult to adjust to the change in climate (Kais & Islam, 2021, p.1). The shrimp farming industry needs to prioritise the resilience of their shrimps, which would help them avoid the usage of harmful chemicals and would consequently decrease the effect it causes on biodiversity. It would also help in the generation of more sustainable ways of shrimp farming along with helping in the promotion of environmentally friendly activities. When the right sustainability strategies are applied in the shrimp farming industry in Vietnam, it will contribute to the efforts being made to minimize the effects of various industries on the environment, which would make it accurate for the future as well. Climate resilience is the ability of organisms, including humans, to bounce back from the effect’s climate has on them. Increasing climate resilience allows the breeding period to harvest at its fullest, leading to an increase in the efficiency and productivity of the industry.

• Mitigation of economic problems: Shrimp aquaculture has diverse systems, from primitive to most equipped, which causes varied effects on the environment (Le et al., 2022, p.1). To decrease the effects of the shrimp farming industry on the economy of Vietnam, many ways could be opted for the betterment of this situation. These methods include improving water quality, as bad water in the shrimp industry could lead to diseases, which results in economic loss. The government of Vietnam can also contribute to improving water management methods by monitoring the quality regularly. Reduction of the animal crowd in the ponds, decrease in the amount of pumped water and installation of fine mesh screens in the water pipes would improve the management of the shrimp industry. Economic problems are solved by educating shrimp farmers, developing new markets, improving the certification, integrating different farming methods and applying genetic improvement methods would decrease the impact on the economy caused by the shrimp farming industry.

• UV and Ozone in the shrimp farming industry: The microbes involved in maricultural have become a serious concern for environmentalists who notice the damage caused by these pathogenic microorganisms (Lai et al., 2024, p.1). Water contamination can be decreased by sterilising the water and using UV or ozone technology to disinfect the environment of shrimps. Exchanging water from time to time would also increase water quality. Using probiotics and wastewater treatment techniques helps maintain water quality.

• Efforts for improving the impact of the shrimp farming industry on the environment: The shrimp farming industry of Vietnam has a very significant role in the country's aquaculture development (Ngoc et al., 2021, p.1). Hence, the effect of the shrimp farming industry on the environment is also considered very big and could be reduced by opting for a location that is not sensitive ecologically as it would ensure the least harm to biodiversity. Water management and usage of sustainable feed that is not plant-based ensures the reduction in deforestation and aids in environmental safety. Water recycling and proper irrigation are the other methods that help reduce the environmental effects of the shrimp farming industry.

7. Investment Opportunities

There are multiple opportunities for the shrimp farming industry that are popular and have increased the market for the industry.

• Investment in advanced technology: The shrimp farming industry has been growing extensively in the last ten years; hence, the investment in this industry would be proved to be profitable (Emericiano et al., 2021, p.1). Shrimp is considered to be one of the most luxurious seafood. Hence, the popularity of this particular seafood has increased exponentially; it is often treated as exotic food in Western countries. Investment in the companies that are focused on investing in shrimp processing helps in expanding the value chain using advanced technology like artificial intelligence into other processes like breeding, feeding and farming. Improvement of technology that is involved in the shrimp farms of Vietnam is one of the big demands of the industry. The technological advancement would help the industry in the water treatment, prevention of disease and sterilization process. Foreign companies that could provide useful technology to Vietnamese shrimp farms have a high scope in Vietnam. Innovative technologies like AI-based technology would help the industry in the improvement of the techniques involved in the shrimp farming industry. The partnership between public areas and private areas would help the Vietnamese shrimp farming industry in the execution of plans that centralize farming areas and help in the application of technology.

• Better usage of resources in the shrimp farming industry: The demand for seafood has been increasing in the past few decades because of its popularity in numerous cuisines and its easy use as a source of protein. The introduction of microbial products that aid in the reduction of waste in the industry is also very helpful, however, many farmers are not able to use such products because of their expensive costs. A cost-effective substitute would be helpful for these farm owners. Usage of land and water can be much more efficient by the super-intensive shrimp farms, however, the industry still needs farmers to be more open to the introduction of technology in their farms, as it would improve the efficiency, productivity and quality of products. The sustainability of farms can be improved by the introduction of centralised farming areas which would help the industry in increasing innovativeness and prolificacy.

• Investment opportunities because of globalisation: Shrimp Agriculture is one of the fastest-expanding industries with multiple growth opportunities (Xuan et al., 2021, p.1). Vietnam is one of the most important producers and suppliers of seafood globally; it is one of the ten exporters in the world. Therefore, there are many opportunities for this industry. The opportunities increase with the introduction of various methods that promote sustainability in the industry as it helps reduce the environmental effects it has. A lending program can aid farmers in supporting the shrimp farmers financially and encourage them to involve environmentally friendly practices in their farms. If provided with the right opportunities, the income level of people involved in shrimp farming who live in the coastal region. Hence improving the socio-economic impact, it has on society and providing employment opportunities for the people who live near the sea in Vietnam.

8. Recommendations

8.1 Sustainable aquaculture technologies.

8.1.1 The Vietnam shrimp industry can implement sustainable aquaculture technology to promote sustainable-based shrimp food products across the globe. Shrimp food is a type of seafood that is an effective source of protein. According to the United Nations report, this product should meet the sustainable development goals to provide advanced benefits to global customers. Sustainable Aquaculture means raising the climate and environmental care monitored and managed by decreasing the containments, waste, and treatments of wild fishes and shrimps (Shang, 2022). Farmers who focus on sustainable sea products can also get high incentives and income for delivering higher quality predictions to customers. Artificial intelligence, remotely operated vehicles, and drones are some technological resources that can help shrimp farming practices that can be improved and monitored by delivering healthy and eco-friendly sea-based products.

8.1.2 Additionally, Novel molecular technology is also identified as a significant source to develop aquaculture across the globe. The molecular technology combination into current breeding programs also increased the genetic improvements in some species aligned with aquaculture farming. Digital technologies are the second technological factor helping the seafood industry improve its sustainability and profitability. Augmented reality has become the interactive experience to establish sustainability in real-world products (Yue & Shen, 2022, p. 112). Blockchain technology, virtual reality, 3D printing, the Internet of Things, offshore farming, and renewable energy are the best technological sources that make shrimp farming effective and popular among health-conscious consumers.

8.2 Development of organic shrimp farming

Organic shrimp cultivation and development has become the global demand among customers and is driven by its versatility and taste. Nutritional value, and increase. On the other hand, conventional shrimp practices generally increase the concerns that may impact the environment due to antibiotic usage. Therefore, sustainable practices are recommended for all seafood and shrimp industries. Organic shrimp cultivation also offers a wide range of solutions to deliver its customers an eco-friendly and healthy alternative. It also delves into the world by exploring the goals, ideas, benefits, and valuable suggestions for providing benefits to its customers and making shrimp farming successful. Organic shrimp farming may provide superior tastes, healthier choices, improved water quality, premium market access, and increased disease resistance to farmers and customers. It is also responsible for reducing pollution, increasing biodiversity, and managing sustainable resources (FnB Fishery, 2024). It aims to increase the farmer’s profitability by protecting the environment and producing healthy and higher-quality shrimp. The owner and farmers of this industry should choose a site that has good water quality, freshwater, and minimal risk of pollution in surrounding areas. They should determine the soil composition by addressing any organic deficiencies.

8.3 Partnerships with local farmers for quality control.

The shrimp farming approach is promoted by development agencies and governments that enable the adoption of technologies by building networks among supply chain actors and farmers. These partners share their knowledge by exploring the casual relationship with farmers that also affect seafood and aquaculture farming across the globe (Joffre, 2020, pp. 3(2)). The various nations' governments should run a wide variety of partnership schemes to develop shrimp farming. Farmers are considered to have a lack of decision-making skills for their pond productions and also do not know the key profits of maintaining environmental sustainability. Shrimp farming needs to be handled by all the parties involved in the production procedures (Umbas et al., 2022, p.2 (2)). Therefore, determining the social aspects of the industry’s stakeholders is the key focus to having partnerships with local farmers for quality controls and developing farmers' awareness about maintaining sustainability.

9. Conclusion

It is identified through the above discussion that the study is based on Vietnam shrimp farming providing information about its significance. It is identified as contributing to the global economy and has become prominent among consumers concerned for their health and well-being. The country also contributes 13 to 14% globally by producing shrimp-based products. The current state of the industry is identified as rising with approx. 4.8% in comparison to last year specifically in the part of Asia. Vietnam is also identified as using the Mekong Delta region for farming shrimp due to its better environmental conditions and soil and water resources quality. However, some of the challenges are also identified facing this seafood-based industry across the globe such as some of the farmers being unaware of sustainability and eco-friendly-based products. Sometimes it can impact the global economy due to customer breaching and lack of interest. Porter's Five framework is used to identify the external factors that may affect the industry in several aspects.

References

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