Lombard invests in Vietnam seafood producer

Founded in 2001, Viet Uc currently specializes in hatchery, nurturing shrimp through several larval stages before sale. It has advanced R&D facilities in Vietnam's key shrimp production areas, with an aggregate annual capacity of over 16 billion shrimp seeds. The company employs 1,000 workers.

Small-scale, family-run hatcheries have gained traction in Southeast Asia. These tend to be low-density operations situated along bays and tidal rivers where there are high densities of larval shrimp. Farmers simply open the gates, impound the wild larvae and grow them to market size. However, there is a movement towards intensive, more industrialized operations that produce greater yields.

According to Vietnam's Ministry of Agriculture and Rural Development, the country is now the third-largest shrimp producer worldwide. Export revenues reached $2.5 billion in 2013, up nearly 33% year-on-year. This accounts for nearly half of Vietnam's total seafood export revenues.

The investment came from Lombard Asia IV, which closed at the hard cap of $350 million in September 2013. LPs include the International Finance Corporation (IFC), which put in $25 million. The fund makes growth-oriented investments in companies formed and operated in Southeast Asia.

Set up in 1985, Lombard has offices in San Francisco, Bangkok and Hong Kong, and extensive working relationships in Manila, Ho Chi Minh City, Shanghai and Taipei. The firm has made more than 90 controlling and significant minority investments throughout Asia and North America.

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• Topics
• Expansion
• Southeast Asia
• Industrials
• Southeast Asia
• Vietnam
• Agriculture
• Lombard Investments
• Growth capital