Kyokuyo Co. is shifting its production away from China with a new seafood processing plant in Vietnam, marking the latest move by Japanese companies to diversify their supply chains.
The 1.9 billion yen ($12.65 million) facility in Long An province near Ho Chi Minh City will focus on crab and fish fillet production using equipment from Japan and Europe. The plant is set to reach full capacity by February 2025, targeting an annual output of 5,000 tonnes.
The expansion comes as Japan’s third-largest seafood processor grapples with China’s ban on Japanese seafood imports following the Fukushima water release. The company cited China’s economic slowdown and foreign policies as key risks driving their strategic pivot.
The Vietnamese venture, operating as Kyokuyo Vina Foods, joins the company’s existing operations in Thailand and North America. However, the choice of Vietnam brings its own challenges, as the country faces European Union scrutiny over illegal fishing practices.
The facility’s launch reflects broader industry trends, with Japan and the U.S. leading global seafood imports while Asian nations dominate the export market. Kyokuyo plans to distribute products across Japan and Southeast Asian markets from the new location.
