Sowing Prosperity in the Mekong Delta
Camimex's Journey to Sustainable Shrimp Farming
In the heart of the climate-vulnerable Mekong Delta, Camimex, the second-largest shrimp processor in Vietnam, envisioned a nature-based solution (NBS) that increased smallholder incomes, reduced greenhouse gas emissions, provided coastal protection and restored biodiversity. This is a tale of growth, resilience, and cooperation, where SNV, working on behalf of the DFCD’s Origination Facility, has supported in turning this vision into reality.
Thriving Amidst Challenges: Camimex's Bold Start
Established in 1977 in the Ca Mau province, Camimex is a beacon of success, processing shrimp at three factories with an annual production capacity of 10,000 tons. Sourcing shrimp from over 3,000 smallholder farmers, including 1,506 organic certified farmers who farm on 8,500 hectares of integrated mangrove farms. The mangrove covers more than 45% of the area. Although Camimex had been very successful, investing in the aquaculture sector in Vietnam is considered high-risk, and the company required support to address these concerns and prepare it to be investment-ready, to take its success to the next level.
Harmony with Nature: The Mekong Delta's Fragile Balance
Climate projections highlight the Mekong Delta's vulnerability to climate change and man-made factors. One of the key climate-smart responses for the landscape is integrated mangrove shrimp. The mangrove belt acts as a natural buffer, pivotal in protecting the landscape. Camimex has emerged as a global leader on integrated mangrove shrimp production, and thus had a key role to play in this fragile landscape.
Origination Facility's Call to Action
The Origination Facility supports climate-focused projects across Africa, Asia, and Latin America. In 2022, Camimex and SNV embarked on a collaboration to address challenges and create a sustainable growth path for the company. Together, they set milestones to de-risk the business, making it investment-ready and aligned with key stakeholder needs.
Transformative Changes: Camimex's Journey of De-Risking
Camimex underwent a comprehensive transformation with the support of the Origination Facility To meet organic certification standards, shrimp farms must adhere to sustainable practices, including 50% mangrove cover. SNV supported Camimex to meet the organic certification practices, by providing training, establishing Internal Control Systems, and initiating a pilot for mangrove planting. SNV's assistance extended to testing a credit linkage model, hatchery expansion, and a blue carbon assessment to explore additional income streams.
SNV's mentorship and grant funding thus supported the company in creating an impactful intervention where organic production aligned with the restoration of critical areas.
“In the past two years, when implementing this project, we realized: Our farmers benefited from the project a lot: material, social policy, awareness, way of thinking, production processes, and sustainable development has become the way of farmers’ thinking in integrating in our supplied chains. We thank DFCD/SNV for this”, Mr. Dang Ngoc Son, General Director of Camimex Corp.
Building Alliances and Investor's Commitment
Camimex's journey attracted FMO, the Dutch entrepreneurial development bank, marking the first investment by FMO in an Origination Facility project. By engaging FMO early in the process and through the Origination process, key risks could be mitigated, providing co-benefits. The activities ensured Camimex to meet investment standards and to be sustainably managed. This ultimately resulted in Camimex obtaining a senior secured $15 million loan from FMO in March 2024 — an important milestone.
Harvesting Success in Camimex's Fields
Camimex's plans for expansion and impact are remarkable — bringing 16,500 hectares of wetlands under sustainable management, increasing incomes for 7,200 smallholder farmers, improving broodstock quality, and expanding processing capabilities by an additional 6,000 tons per year. The company is now implementing its 2022–2030 private sector transformation goals.
Looking Beyond: Camimex's Vision for a Sustainable Future
Camimex envisions becoming the world leader in organic shrimp farming, thanks to DFCD's support, taking a significant step toward expanding its impact. In the tapestry of the Mekong Delta, Camimex's story stands as an inspiration—a testament to the harmony between business success and environmental stewardship.
Watch this video to learn more about Camimex and the DFCD’s collaboration for a resilient Mekong Delta.