Kyokuyo factory in Long An province, Vietnam's Mekong Delta. Photo courtesy of Kyokuyo/FIS

Kyokuyo Opens First Production Facility in Vietnam as Part of Global Expansion Strategy

VIET NAM
Thursday, November 14, 2024, 00:10 (GMT + 9)

Japanese food company Kyokuyo Co., Ltd. has completed construction of a new factory in Long An Province, southern Vietnam.

Kyokuyo new factory opennig ceremony. Photo courtesy of Kyokuyo.

This $13.5 million (JPY 2.1 billion) investment, under the subsidiary Kyokuyo Vina Foods Co., Ltd. (located in Ho Chi Minh City), marks Kyokuyo’s first production base in Vietnam. The facility, located on 1.2 hectares in the Duc Hoa 1 Industrial Park within the Mekong Delta region, will focus on producing filleted fish, cooked and grilled fish products, processed crab, and other seafood items.

Photo courtesy of Kyokuyo.

The facility's official opening ceremony took place on November 8, with full-scale operations scheduled for February 2025. Kyokuyo projects production volumes of approximately 5,000 tons for fiscal year 2025 and around 7,500 tons for fiscal year 2026, primarily to serve the Japanese market.

This new plant is a key component of Kyokuyo's medium-term strategy to diversify its production footprint, reducing reliance on China by expanding into other regions. The company’s investment in Vietnam aligns with its goal to decentralize production across multiple markets, mitigating operational risks and addressing growing demand in Southeast Asia, where rising incomes and health awareness are driving seafood consumption. Kyokuyo has also indicated potential plans for an additional facility in Vietnam to further serve regional markets.

Photo courtesy of Kyokuyo.

Vietnam’s foreign direct investment (FDI) reached $27.26 billion in the first 10 months of 2024, marking a 1.9% increase year-on-year, according to the Ministry of Planning and Investment. Long An Province ranked 12th among FDI destinations, securing $701.1 million. The Vietnam Association of Seafood Exporters and Producers (VASEP) reported that Vietnam's seafood export revenue totaled $8.27 billion for the same period, with Japan as the third-largest market, accounting for $1.25 billion.

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