Shrimp aquaculture is under pressure to increase its production to meet the growing demand for food from a growing population. In the Philippines, aquaculture has experienced the shift from milkfish to prawn, with its attractive marketable price. This intensification has led to negative and positive impacts, which have raised a range of environmental and socioeconomic problems. This paper reviews the environmental and socioeconomic challenges that the shrimp aquaculture industry faces using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) method. We examine the gaps and the changes that are required to revitalize the industry. We examine and assess the impacts of shrimp culture on the environment, e.g., shrimp farm management, marine pollution, disease outbreaks, and the social, economic, and climate change impacts. The presence of viral diseases, such as White Spot Syndrome Virus (WSSV), Monodon Baculovirus (MBV), Infectious Hypodermal and Hematopoietic Necrosis Virus (IHHNV), Hepatopancreatic Parvovirus (HPV), and Yellow Head Virus (YHV), have caused approximate losses in the industry of 40,080 mt in 1997, and 51,000 mt in 2014. Recommended strategies and policy changes are considered for the improvement of shrimp aquaculture, including disease management, the adoption of good aquaculture practices, proper environmental monitoring, sustainable practices at the farm level, and priorities for cooperation among the concerned government agencies and local governments, as well as the involvement of state universities and colleges, for better management practices.