By the end of November 2010, Vietnam earned US$1.9 billion from exporting 219,000 tonnes of shrimp abroad, said the Vietnam Association of Seafood Exporters and Producers (VASEP).

2010’s total shrimp export volume is estimated to have reached 240,000 tonnes worth US$2.08 billion in value, up by 15.4 percent in volume and 24.17 percent in export value over 2009.

Last year, as many as 341 Vietnamese businesses (149 exporting white-leg shrimps and 163 exporting tiger prawns) exported various shrimp products to 92 markets over the world, 10 markets higher than in 2009. VASEP has attributed the good export performance to different factors.

White-leg shrimp exports achieve high revenues

Since white-leg shrimp cultivation on a large-scale throughout the country three years ago, white-leg shrimp raising areas saw a year-on-year increase, helping to raise shrimp export value significantly.

Last year, the country’s total white-leg shrimp raising area rose by 30 percent to reach 25,000 ha while total output grew by 50 percent over 2009. Cultivation areas for intensive farming are mostly located in Quang Ninh with 4,000 ha and in the central provinces with nearly 7,000 ha.

In November 2010, Vietnam fetched roughly US$370 million in revenue from exporting 56,271 tonnes of white-leg shrimp, making up 25.7 percent of export volume and 19.4 percent of total export value in shrimp products. White-leg shrimp export value, came second nationwide behind tiger prawns and was expected to reach US$410 million in 2010 with a total output of 61,000 tonnes.

However, tiger prawns remained a key export item which decided the total success of shrimp exports. In 2010 alone, the country’s total tiger prawn-raising area reached more than 613,700 hectares, only a slight increase over a year earlier. Tiger prawns are mostly raised in six Mekong delta provinces, including Ben Tre, Tra Vinh, Bac Lieu, Ca Mau and Kien Giang with a total farming area of 564,485 ha. Also in the same period, total tiger prawn output hit nearly 333,000 tonnes, only 4 percent more than 2009.

Since the beginning of 2010 to the end of November, Vietnam exported nearly 129,000 tonnes of tiger prawns worth US$1.3 billion, up by 42.4 percent in volume and 58.8 percent in export value over the same period last year. The whole year’s tiger prawns were expected to reach US$1.45 billion in export turnover and 141,000 tonnes in export volume.

Efforts to expand markets and diversify products

Despite changes in product structure and importing countries, Vietnam still exported shrimp products to 92 markets in 2010, 10 markets more than in 2009, thanks to domestic business’s efforts to diversify products and to increase export value.

Over the past 11 months, shrimp exports soared by 13 percent in volume and 23.5 percent in export value against 2009. Export shrimps in 2010 were priced around US$8.7 per kg, 8.8 percent more than 2009. Increased shrimp exports in most major markets showed Vietnamese shrimps are much sought on the global market.

Apart from the advantages, the increase in shrimp prices in the world market, especially in major markets, is attributed to shrimp businesses’ common consent in terms of production strategies and export prices.

The US takes the lead with the highest price of US$10.6 per kilo, 16 percent higher than 2009’s figure, followed by Japan and the European Union (EU). Some emerging markets such as Australia, Canada and Singapore have also recovered remarkably with high export price of shrimp ranging between US$8.3-10.1 per kilo.

VASEP said shrimp prices have risen due to several reasons, like the oil spill in the Gulf of Mexico, the economic recovery of main markets, and the spread of epidemics. In addition, some issues on food hygiene and safety in some main shrimp exporters in Asia also offered a good opportunity for Vietnam’s seafood exports in general, and shrimp exports in particular in 2010.

Demand for shrimp recovers in the world market

Shrimp exports to almost all major markets, such as China and the Republic of Korea have posted high growth in both volume and value. However, Japan has so far remained the biggest shrimp importer for Vietnam, followed by the US and EU.

Over the past years, Vietnam has continuously taken the lead in the shrimp market share in Japan, making up more than 20 percent in volume and 20.9 percent in value of Japan’s total imports.

In the past 11 months, Vietnam shipped 57,236 tonnes of shrimp worth US$528.1 million to Japan, 8.2 percent in volume and 15 percent in value more than the same period last year.

Vietnam now ranks fourth in export value of shrimp to the US. Until November 2010, Vietnam exported nearly 48,000 tonnes of shrimps worth US$511.7 million to the US, up 20.3 percent in volume and 40.3 percent in value against the same period last year.

In 2010, demand for shrimp consumption in the EU market recovered. Vietnam ranks eighth among shrimp exporters to the EU. Vietnam’s shrimp export volume to the EU market has increased sharply in the 2003-2009 period, because of advantages in terms of prices of tiger prawn. Increase in volume made an average figure of 16.8 percent per year. Until November, 2010, Vietnam shipped 41,800 tonnes of shrimp, worth US$307 million, to the EU, up 8.7 percent in volume and 17.7 percent in value over the previous year.

Shrimp exports expected to surpass US$2 billion in 2011

In 2010, Vietnamese seafood businesses had to face many difficulties such as a lack of materials, high production costs, and the high level of trifluralin residues in shrimp.

However, with great efforts made by the Vietnamese State and businesses, the shrimp sector will continue to develop in 2011 and in following years.

According to VASEP’s forecast, shrimp output in the country will increase thanks to good results obtained in 2010, especially in white-leg shrimps. Therefore, shrimp exports are expected to reach around US$2.1 billion in 2011.  

To fulfill the set targets, this year, Vietnam’s shrimp sector should continue to build economic links in production and control the use of antibiotic trifluralin in shrimp products effectively. In addition, it is necessary to trace the products’ origin, develop a zoning plan for a safe breeding area, and focus on building trademarks for Vietnamese shrimp.