According to the Ministry of Agriculture and Rural Development (MARD), seafood exports in the first seven months of 2024 were estimated at $5.29 billion, up 7.3 per cent on-year, ranking second in export value within the agricultural sector.
Shrimp exports alone generated $2 billion, up 7.5 per cent on-year, maintaining its position as the top product in the seafood industry.
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China, the United States, Japan, and the EU were among the major importers of Vietnamese shrimp, contributing to the positive growth in export value during the first half of this year. Notably, China recorded the highest growth rate. Specifically, shrimp exports to China (including Hong Kong) reached $328 million, a substantial increase of 17 per cent compared to the same period last year.
In the first half of this year, China significantly increased its purchases of Vietnamese lobster, causing the export value of this crustacean to surge 57-fold on-year. The US market followed with export value reaching $303 million, a slight increase of 1 per cent; exports to Japan totalled $229 million, down 3 per cent; and to the EU, $217 million, up 13 per cent compared to the same period in 2023.
The Vietnam Association of Seafood Exporters and Producers (VASEP) forecasts strong growth in shrimp exports to the US and EU markets in the final months of this year. This aligns with market trends, as importers typically increase large-scale purchases for the year-end holiday season.
Additionally, inventory issues and transportation difficulties are expected to ease, with demand recovering and prices likely to rebound. Following this trajectory, Vietnam’s shrimp exports are projected to meet the $4 billion target this year.
Despite this recovery, shrimp exports still face numerous challenges. According to congthuong.vn, Ho Quoc Luc, chairman of the Board of Directors at Sao Ta Foods JSC, noted that Vietnamese shrimp are facing increased competition from countries like Ecuador, India, and Indonesia in the US market. Oversupply from India and Ecuador’s increased production has led to a continuous sharp decline in shrimp prices.
Simultaneously, sluggish consumer demand due to the global economic recession has created unfavourable conditions in the shrimp export market.
Tensions in the Red Sea pose a complex problem for global supply chains, directly impacting Vietnamese shrimp exports to key markets such as the US and Europe. Rising transportation costs and risks in ensuring delivery schedules are forcing export businesses to seek more complex alternative solutions or focus on closer markets.
According to Phung Thi Kim Thu, a shrimp market expert from VASEP, businesses need to pay attention to new consumer preferences to increase market share in 2024. For example, China is trending towards reducing imports of frozen warm-water shrimp, rock lobster, other sea shrimp, and frozen lobster, while increasing imports of fresh, live, and chilled lobster. In South Korea, demand for pre-cooked, processed, and ready-to-eat seafood is rapidly increasing.
The US and China are expected to remain the two largest markets for Vietnamese shrimp exports in 2024, accounting for about 40-45 per cent of the industry’s export turnover. Domestic businesses are also actively expanding and seeking new markets to minimise risks associated with dependence on a few traditional markets. Diversifying export markets helps the shrimp industry gain more opportunities for sustainable and stable long-term development.
The government and relevant agencies are working to support businesses through preferential policies, facilitating exports, and improving product quality. Research and development programmes for new technologies in shrimp farming and processing are also being prioritised to enhance productivity and quality, meeting the stringent standards of demanding markets.
Vietnamese shrimp has been exported to about 100 countries and territories, ranking among the top three countries for shrimp exports in the world and accounting for 13-14 per cent of the total global shrimp export value.
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Full shrimp potential still outwith reach
The export market in the first half of this year has painted a decent picture for shrimp businesses, but generally still behind the country’s previous medium-term ambitions. |
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Brighter prospects for seafood exports
Gradual market rebound and China’s ban on seafood exports from Japan has been instrumental for Vietnam’s seafood export gaining growth momentum at year-end. |
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Seafood sector faces bleak prospects in 2024
Seafood exporters have a gloomy outlook amidst multiple hardships both at home and abroad. |
