Kyokuyo launches its first seafood processing plant in Vietnam — $12.65 million investment to produce 5,000 tons of crab products and fish fillets per year

Japanese seafood major Kyokuyo has begun full-scale operation of "Kyokuyo Vina Foods," its first overseas company-owned plant, built in the Duc Hoa Industrial Park in Tay Ninh Province (formerly Long An Province) in southern Vietnam. The investment totals $12.65 million (approximately 1.96 billion yen), with an annual production capacity of 5,000 tons. The plant will export mainly crab products and fish fillets to Japan and Southeast Asia.

Plant details

Kyokuyo Vina Foods is located within the Duc Hoa 1 Industrial Park in Duc Hoa District, Long An Province. It has installed processing machinery imported from Japan and Europe to manufacture seafood products such as crab, fish fillets, boiled fish, and grilled fish. The plant expects to employ up to 800 people and began full operation in February 2025.

Kyokuyo is Japan's third-largest seafood processing company (by total assets, fiscal year ended March 2024), after Maruha Nichiro and Nissui. The new Vietnam plant is the company's first Vietnamese base and forms a pillar of the overseas production base expansion measures in its medium-term management plan, "Gear Up Kyokuyo 2027."

Investment Data

Background — avoiding China risk and shifting to Vietnam

The main reason Kyokuyo decided to enter Vietnam is the rising business risk in China. In August 2023, the Chinese government imposed a total ban on imports of Japanese seafood in response to the release of treated water from the Fukushima Daiichi Nuclear Power Plant. This measure dealt a major blow to Japan's seafood processing industry, making it urgent to break away from dependence on China.

In addition, China's economic slowdown and unstable diplomatic relations have reduced its appeal as a long-term production base. Kyokuyo positions Vietnam as "a Southeast Asian production hub to replace China," and is also considering building a second plant.

Industry reaction

• Tay Ninh Province (formerly Long An Province) authorities have praised Kyokuyo's entry as "contributing to the upgrading of the province's seafood processing industry." Expectations are high for the transfer of Japanese-quality processing technology.
• Vietnam's seafood industry welcomes the direct entry of a major Japanese seafood company, saying it will lead to "an increase in the added value of Vietnamese seafood."
• Japan's seafood industry is watching whether Kyokuyo's entry into Vietnam will prompt other seafood majors (Maruha Nichiro, Nissui) to follow suit. Securing an alternative base to China is an industry-wide challenge.

Implications for Japanese companies

Kyokuyo's move is a concrete example of a "China Plus One" strategy in Japan's seafood and food processing industry. Southern Vietnam is well suited for sourcing seafood raw materials, with easy access to freshwater fish farming in the Mekong Delta and shrimp farming areas in Ca Mau Province.

Long An Province is adjacent to Ho Chi Minh City, with good logistics access to Cat Lai Port and Tan Son Nhat Airport. Labor costs are about half to a third of those in China, and it is said to be easy to secure around 800 unskilled workers. For Japanese food OEM manufacturers, southern Vietnam is a strong option for handling "raw material sourcing, processing, and export" in an integrated way.

Impact on the industry — Japanese seafood majors reposition across ASEAN

Kyokuyo's entry into Vietnam is a forerunner of a move by Japan's seafood industry to reposition production bases within ASEAN. In Thailand, rising labor costs and labor shortages are becoming serious, and Vietnam and Indonesia are emerging as the next candidate locations. If Kyokuyo builds a second plant in Vietnam, competitors are likely to follow suit at an accelerated pace.

This could become an opportunity not only for seafood processing but for a wide range of food processing industries, including frozen foods, seasonings, and beverages, to consider a "shift to Vietnam."

Practical Information

Conclusion

Kyokuyo's first plant in Vietnam symbolizes a structural shift in Japan's seafood industry toward avoiding China risk and securing a production base in ASEAN. The annual production capacity of 5,000 tons and the consideration of a second plant reflect a move to position Vietnam not merely as a sourcing destination but as a "strategic base for processing and export." For Japan's food processing industry, Kyokuyo's success or failure will serve as a leading indicator for decisions on entering Vietnam.

Related article: Kokuyo Acquires Thien Long, Vietnam's Largest Stationery Maker, for About USD 190 Million

Related article: Indonesia's Momogi Group completes acquisition of Vietnam's long-established confectionery maker Bibica

Source: Tuoi Tre News, Vietnam Investment Review