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FMC – Accelerating exports ahead of US tariff decision

• Vietnam's shrimp industry has recently faced many difficulties when the US tariff is expected to be applied to Vietnam higher than competitors in the world. However, FMC still shows a reasonable strategy when continuously showing strong growth in the first 5 months of 2025. FMC's 5M2025 export value reached 115 million USD (+41% YoY) as a strong 38% YoY growth of shrimp consumption.
• Although the selling price of Vietnamese shrimp is often higher than that of competitors, Vietnamese enterprises such as FMC have had a strong direction in the niche market of value-added shrimp products, such as breaded shrimp. Vietnam's value-added shrimp is only under pressure to compete directly with Thailand thanks to the positioning of high-quality products.
• In the field of food consumption, in addition to the selling price, consumers are very interested in product quality. Shrimp with high antibiotic residues are often refused import by the FDA. Therefore, we believe that Vietnam can compete in the US market with the position of high-quality value-added (VAT) shrimp products, as shown by accounting for 37% of the market share of value-added shrimp in Japan.
• Although tariff risks from the US and high raw shrimp prices due to the epidemic situation continue to cause difficulties for the shrimp industry , we expect FMC to easily change the market when the tariff rate in the US is not favorable. Since then, FMC's net profit is estimated at VND 308 billion (+1% YoY), equivalent to the long-term target price of VND 48,000 and BUY recommendation.