The Vietnamese tra fish (pangasius) industry is navigating a highly competitive landscape, both domestically and regionally. Key competitors include not only local businesses but also rivals from neighboring countries such as China, Cambodia, Bangladesh, India, and the Philippines, all vying for market share.
A critical factor in the competitiveness of the industry is feed, which accounts for 70-75% of the total production cost in the tra fish supply chain. The quality of seafood feed directly influences both the final product’s quality and its pricing on the market.
As competition intensifies, domestic seafood feed manufacturers are responding by focusing on three key strategic priorities: improving product quality, reducing production costs, and implementing forward-thinking strategies to maintain a competitive edge in the market.
Transformation to expand market share
The seafood feed market in Vietnam was valued at US$2.38 billion in 2023 and is expected to grow to US$2.94 billion by 2028, with a compound annual growth rate (CAGR) of 4.3% during the forecast period.
Seafood feed comes in various types, sizes, and nutritional values. It is a blend of raw materials, additives, and other supplements, sourced from either natural or synthetic origins, and used to feed farmed fish. In Vietnam, the seafood feed market is categorized by the type of feed, based on species such as whiteleg shrimp (Litopenaeus vannamei), black tiger shrimp (Penaeus monodon), pangasius, carp, catfish, and tilapia among others.
The seafood feed market is experiencing significant transformation, driven by the efforts of both domestic and international companies to secure a sustainable market share. Major players are competing not only on product quality and promotions but also through strategic initiatives.
Sao Mai Super Feed has been operating in the Vietnamese seafood feed market for almost eight years, with an initial designed capacity of 360,000 tons per year. Despite being a relatively new player, the company has rapidly expanded its market share through effective strategies. It employs modern, closed-loop processing technology and uses natural ingredients, such as fishmeal, cassava, soybeans, rice bran, and premix.
Under the guidance and close supervision of Associate Professor Dr. Le Thanh Hung from the Nong Lam University in HCMC, the quality of Sao Mai Super Feed products has been consistently maintained and improved.
The market has strong growth potential, as aquaculture production is projected to continue rising in the coming years. There is also a growing demand for high-quality and sustainable seafood feed. Therefore, Sao Mai Super Feed has strived to leverage these opportunities by innovating new feed products, expanding into new markets, and investing in cutting-edge production technologies.
In 2024, despite facing challenges such as raw material shortages, diseases, and natural disasters, Sao Mai Super Feed has maintained stable operations and made significant strides in its strategy to expand market share.
The company’s role goes beyond merely supplying products. It also acts as a key link, connecting farmers with the supply chain and consumer markets through comprehensive solutions that protect the livestock sector and ensure a sustainable, high-quality protein supply for local communities. This approach helps shape the future of the industry in line with modern agricultural trends.
