Lobster industry: Key farming in aquaculture development strategy

Taking stock of the lobster industry as a whole

On the morning of August 8, in Nha Trang Ward, the Department of Fisheries and Surveillance, in coordination with the Department of Agriculture and Environment of Khanh Hoa Province, held a conference on “Sustainable Development of Lobster Farming and Consumption.”

report from the Department of Fisheries and Surveillance shows that lobster farming areas stretch from Quang Binh to Ho Chi Minh City, with Dak Lak and Khanh Hoa accounting for more than 95% of the country’s total lobster cages and production. The industry has shown strong signs of recovery, with export turnover reaching a record $858 million in 2025. In the first six months of 2026, exports totaled 11,790 tonnes worth $584.6 million, up 44.1% year on year. China remained the largest market, accounting for 98.53% of export turnover.

However, behind this positive growth, the lobster industry continues to face major bottlenecks. National demand for lobster seed is estimated at 100-120 million juveniles a year, while wild-caught seed supplies only about 10% of this demand. Although research into artificial breeding of spiny lobster has made progress, the technology has yet to be scaled up for commercial production.

Meanwhile, importing markets are imposing increasingly stringent requirements, including proof of legal origin (F2 generation) for spiny lobster. Traditional cage-farming practices and the use of fresh feed also expose farming areas to risks of environmental pollution and disease outbreaks, while contributing to high mortality rates of around 30-35%.

In response, the Department of Fisheries and Surveillance has called for a major shift in the industry from extensive growth to more intensive, quality-oriented development. Key priorities include cooperation in the official import of lobster seed, accelerating the allocation of marine areas, issuing farming-area codes, encouraging the transition to HDPE cages, promoting the use of commercial feed, and completing traceability systems.

Local practices and production barriers

Khanh Hoa and Dak Lak are the two provinces with the largest lobster farming operations in the country, but both are under increasing pressure to reorganize and restructure production.

In Khanh Hoa, Nguyen Trong Chanh, Deputy Director of the provincial Department of Agriculture and Environment, said lobster is a distinctive, high-value seafood product that provides livelihoods for thousands of coastal households.

The number of lobster farming cages in the province has increased rapidly, from 74,443 cages with an output of 1,800 tonnes in 2023 to 126,552 cages producing 12,748.8 tonnes in 2025. In the first six months of 2026, the province had 137,136 cages, with production reaching 10,270.5 tonnes. The largest farming area is concentrated in Cam Ranh Bay, with 102,564 cage compartments, followed by Van Phong Bay with 38,640 cages, of which spiny lobster accounts for 70%; Phan Rang Bay with 5,090 submerged cage compartments; Nha Trang Bay with 3,900 cages; and the Ninh Hoa area.

The sector also faces weak value chain linkages, rising input costs, and persistent disease risks. To address these challenges, the province is reviewing farming areas for inclusion in planning, allocating marine areas, and registering farming cages in accordance with the 2017 Fisheries Law, while also establishing cooperative groups and cooperatives linked to businesses.

The local lobster farming industry also faces several barriers, including heavy reliance on imported seed, the absence of commercially available industrial feed, high investment costs for HDPE cages, and the fact that more than 90% of exports are shipped fresh and live to China.

To protect the environment, Dak Lak is conducting a comprehensive review and restructuring of the sector, with a plan to reduce the scale of farming to 48,000 cages across 1,000 hectares. The province will also support livelihood transitions for small-scale farmers who do not meet the required conditions, encourage the development of high-tech offshore aquaculture, and attract major enterprises to make structured, large-scale investments.

Proposing fundamental solutions for value chain

Addressing the seed supply challenge, Nguyen Huu Dung, Secretary General of the Vietnam Fisheries Society, noted that Indonesia is Viet Nam’s main source of lobster seed, but its management policies have been frequently revised. Under Indonesia’s Regulation KP 7/2024, only live lobsters weighing more than 50 grams may be exported, while foreign enterprises are required to invest in local lobster nursery facilities.

To overcome these barriers, Dung proposed a two-stage joint-venture model: establishing nursery facilities in Indonesia to rear lobsters from 0.2 grams to 5 grams under controlled conditions, before transferring them to Vietnam for further grow-out to above 20 grams and eventual supply to farmers.

Drawing on local management experience, representatives of the Departments of Agriculture and Environment of Khanh Hoa and Dak Lak provinces proposed that the Ministry of Agriculture and Environment and relevant central agencies commission national-level science and technology programs. The priority areas include mobilizing resources to master artificial lobster seed production technologies, developing specialized commercial feed, refining onshore farming systems using recirculating aquaculture systems, and developing solutions to control common diseases.

The two provinces also called for the central government to introduce specific financial, credit and logistics support mechanisms, help resolve obstacles to the official import of lobster seed, and step up efforts to promote and expand export markets.

Tran Dinh Luan, Director General of the Department of Fisheries and Surveillance, affirmed that lobster is a key farmed species in the national marine aquaculture development strategy, with a target of maintaining annual growth in production value at 8% and accounting for around 15% of total seafood export turnover by 2030.

To achieve these goals and effectively implement Decision No. 1664/QD-TTg and Resolution No. 36-NQ/TW on the strategy for sustainable development of the marine economy, Director General Tran Dinh Luan called on the entire sector to make a decisive shift from extensive to intensive development.

Science and technology, digital transformation and innovation should serve as key drivers, in line with the spirit of Resolution No. 57. The sector should focus on managing farming areas within their environmental carrying capacity, scaling up cooperative models that link producers across the value chain, and placing quality, food safety and traceability at the core of development. These efforts are expected to help build a modern, sustainable lobster industry capable of deeper integration into international markets.