Promoting shrimp exports in the second half of the year

Processing shrimp for export at Sao Ta JSC

Exporting shrimp to eighty four markets

Assessing the shrimp export industry, Mr. Nguyen Nhu Tiep, Director of the Department of Agro-Forestry-Fisheries Quality Management (Ministry of Agriculture and Rural Development), said that shrimp is the industry with a highest proportion of exports in the seafood industry. However, in the first six months of 2023 due to the impact of many factors, shrimp exports fell quite deeply compared to the same period last year.

In the first six months of 2023, Vietnamese shrimp exported to eighty four markets around the world, with a turnover of US $1,546 billion, down 31.9% over the same period in 2022, equaling 35.9% of the 2023 plan (4,3 billion USD). In June alone, shrimp exports reached 328 million USD, down 20.9% over the same period in 2022.

Regarding the market, shrimp exports to five main markets (USA, EU, Japan, Hong Kong and South Korea) simultaneously decreased by double digits, of which the biggest decrease was the EU market with 48.9%, the US decreased by 48.9%. 38.1%, South Korea 28%, Japan down 29% and China-Hong Kong down 15.7% year-on-year in 2022. Shrimp exports to smaller markets such as the UK and Taiwan alone recorded positive growth compared to the same period in 2022.

Sharing about the production and processing of shrimp for export, Mr. Le Thanh Hoa, Deputy Director of the Department of Processing Quality and Information Market Development, the country currently has 374 specialized and combined shrimp processing establishments. eligible to export to more than 100 markets, with a capacity of over 1.7 million tons of raw materials/year, mainly in the South Central provinces and the Mekong Delta provinces. With the above advantages, processed products are diverse in design and form to meet the needs of the consumer market.

At a market perspective, Mr. Pham Quang Huy, Vietnam's trade counselor in the US, shared that US shrimp production only meets 10% of demand, the remaining 90% depends on imports from other countries. In particular, Vietnam is a large shrimp export market to the US. However, in recent years, export turnover has decreased due to many reasons. In the first six months of 2023, shrimp exports to the US market reached USD 298 million, down 38.1% over the same period in 2022.

The reason for the decrease in shrimp exports to the US has many reasons, of which the price of raw shrimp in Vietnam is higher than that of other countries such as Ecuador, India, and Indonesia; Inflation in the US increased, American consumers saved their spending, switching to cheaper food. Besides, the amount of shrimp in stock is high, so American importers have not dared to buy…

Assessing Market trend

Information on market trends for businesses, trade counselors in some markets have updated and disseminated regulations, needs and consumer tastes from now until the end of 2023 and 2024 for traditional and potential markets. According to Mr. Pham Quang Huy's forecast, the demand for US shrimp imports will increase because the US economy can avoid a decline and may increase sharply from August onwards to serve the needs of the year-end festival.

With the large market of China - a key seafood export market, the representative of Vietnam's trade counselor in China said that this market has great potential for Vietnam's brackish water shrimp. In the first six months of 2023, Vietnam's shrimp exports to China and Hong Kong reached $280 million, down 15.7% over the same period in 2022. In recent times, China has increased imports of Ecuadorian shrimp sharply, India because shrimp prices in these two countries are more competitive than Vietnam.

According to the representative of the counselor, businesses have not made full use of the market space, only focusing on the traditional market. They have not been able to access large supermarket systems. In order to limit  infringing shipments when exporting to the Chinese market, the representative of Vietnam's counselor in China made many notes to businesses: it is necessary to strengthen control of quality standards; closely supervise the production and export stages; need specialized staff with market knowledge...

However, in the post-Covid-19 context, the conflict between Russia and Ukraine has had a strong impact on the global value chain, the consumption demand of markets in 2023, and the pressure from competitors' supply. Competition greatly affects the economic efficiency and psychology of farmers, leading to a reduction in the scale or suspension of shrimp farming, the possibility of not securing raw materials for processing and export when the market gradually recovers by the end of 2023 and early 2024.

It is forecasted that in the last months of 2023, inflation, inventory levels will tend to decrease and the demand for year-end holidays will increase, which will help to expect Vietnam's seafood export turnover in particular, commodities Shrimp will increase again in major seafood export markets such as Japan, China, the United States, and South Korea.

It is expected that from August onwards until the end of the year, import demand from Vietnam to China will increase again to serve the Mid-Autumn Festival, National Day and year-end festivals.

Taking advantage of the above advantages, enterprises proposed to the Ministry of Industry and Trade to step up negotiations and sign trade agreements to diversify product markets; supporting businesses to take advantage of commitments and exploit opportunities from agreements; prioritize resources for trade promotion to expand markets, connect trade to promote shrimp exports.

Proposing the overseas Vietnamese trade deal to study, grasp the demand, and regulate the market so that the ministries and branches can orient the development of the shrimp product market; strengthen business and trade connections to promote exports. The State Bank ensures preferential credit capital for shrimp farming, processing and exporting enterprises.