According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam’s shrimp exports in 2023 are forecast to reach about 3.4 billion USD which is 21% lower than in 2022.
Shrimp exports in 2023 decreased by 21% compared to 2022.
Regarding the import market, the US is the largest single market which continued to increase Vietnam’s shrimp imports in November. Shrimp exports to this market last month increased by 24% to reach 51 million USD. This was the fifth consecutive month of positive growth. Accumulated in 11 months, shrimp exports to the US reached 640 million USD, down 17% over the same period last year.
For the EU market, the decline in exports to this market has been milder due to the increase in demand at the end of the year and inflation here has also cooled down. In November, shrimp exports to the EU decreased by 3% to 36 million USD.
Exports to China and Hong Kong (China) continued to decline in November. The demand in this market was unstable, growing positively for 03 months from June to August, then declining in September, October, and November. However, the decline was not as strong as in the first months of the year. China and Hong Kong (China) are the two markets with the lowest decline among the main import markets. The demand for Vietnam’s shrimp imports from China and Hong Kong (China) depends not only on economic growth and inventories in the country but also on cheap supply from Ecuador.
China’s shrimp imports still increased sharply. However, since there are many suppliers “rushing” into this market at low prices, it is difficult for Vietnam’s shrimp to compete on price. In the last month of this year, Vietnam’s shrimp exports to China decreased over the same period last year. It is likely to recover slightly in the first months of 2024.
Economists said that China will become increasingly dependent on imported seafood, like the Western model. China’s shrimp consumption is large, even more than the US and EU. In 2023, it is estimated that this country will import a huge amount of shrimp up to one million tons, mainly for domestic consumption and processing, export is unconsiderable.
China is the target market of many shrimp exporting countries such as Ecuador and India with the cheap shrimp supply. As a result, Vietnam’s shrimp is under pressure to compete on price. Besides, businesses also face competition from shrimp processors in China.
Vietnam’s shrimp is under pressure to compete on price.
To take advantage of opportunities from China, VASEP recommends that B2B trade should be further strengthened, especially local-level trade. In addition, there should be exchange and sharing of information on market needs and regulations, especially when there are changes in import and export policies.
In 11 months of 2023, shrimp farming output reached 1,100,400 tons, up 5.9%: prawn reached 252,600 tons, up 1.5% and white-leg shrimp reached 779,700 tons, up 7.3%. The price of raw shrimp in the Mekong Delta provinces tends to increase in November 2023, especially for large-sized shrimp. However, the supply is not much due to the decrease in shrimp prices and farmers.
Mr. Duong Long Tri – Deputy General Secretary of the Vietnam Fisheries Association – said that: So far, the production of farmed shrimp is about 1.1 million tons. The export value only ranges from 3.5 to 4 billion USD. Previously, 700,000 tons also reached the same value. Therefore, it is necessary to consider preliminary processing and processing solutions to increase the value of products and improve export turnover.
Regarding this, VASEP said that Vietnam is aiming to become one of the leading countries in deep-processing and creating high-value-added seafood products.
Promoting the production of value-added shrimp products continues to be the orientation of authorities and enterprises in the coming time for the shrimp industry to increase competitiveness and sustainable development./.