Shrimp exports to China likely to rebound this year

In fact, the Vietnamese shrimp industry faced numerous challenges last year with the shrimp export value dropping by 22% to US$3.4 billion.

Accordingly, shrimp exports to markets such as China, the United States, Japan, and the EU also experienced a decrease of 8%, 15%, 24%, and 39%, respectively.

Notably, China’s import demand for shrimp has significantly increased due to abundant supply sources from markets such as India and Ecuador, a factor which has led to Vietnamese shrimp facing fierce competition on price.

However, due to close geographical location, Vietnamese businesses have enjoyed advantages in terms of transportation costs.

In particular, the escalating tensions occurring in the Red Sea have caused shipping costs to increase, which in turn has led Ecuador to reduce exports to China. These factors are anticipated to create a wealth of opportunities for Vietnamese shrimp to boost exports to the northern neighbour moving forward. 

Similarly, shrimp exports to the US and Japan are also expected to enjoy advantages due to improved food demand, cooling inflation, and a rebound in retail sales.

However, the VASEP noted that the American Shrimp Processors’ Association recently submitted a request to initiate an anti-subsidy investigation into Vietnamese shrimp.

Vietnamese shrimp is likely to still be affected in the first half of this year, in addition to facing obstacles from tensions in the Red Sea.

With regard to Japan, Vietnamese shrimp has maintained its competitive advantages in this market as Japan boasts a closer geographical location than the US and EU with safer payment methods.

Although the EU market will not revive this year due to economic and political instability, shrimp demand in the region is likely to remain stable moving forward, industry insiders said. The VASEP noted that the shrimp industry is anticipated to rake in about US$4 billion throughout the year, representing an increase of 5% compared to 2023.