In August 2022, Vietnam’s shrimp exports reached more than USD 398 million, up 41% over the same period in 2021. Accumulated in the first 8 months of this year, shrimp exports reached more than 3 billion USD, up 24 %, reported Vietnam Association of Seafood Exporters and Producers (VASEP). In the first eight months of this year, in the top 10 main shrimp import markets of Vietnam, shrimp exports to the United States (USA) and United Kingdom (UK) decreased, while exports to the remaining markets all grew positively.
Despite recording growth, Vietnam’s shrimp exports as of August this year are facing many problems in terms of raw material supply, transportation costs, high production costs while consumption demand in Vietnam is increasing. major markets such as the US and European Union (UE) slowed down in the context of high inflation and a decline in economic growth in these countries.
Shrimp exports in August 2022 still recorded a growth of more than 40% because at this time of the same period last year, many processing and exporting enterprises had to stop or reduce their operating capacity due to social distancing to prevent the covid-19 epidemic.
Higher growth rate
In the first eight months of this year, in the structure of Vietnam’s export shrimp products, whiteleg shrimp accounted for 75%, black tiger shrimp accounted for 14%, the rest was marine shrimp.
Marine shrimp exports increased the most by 78% while vannamei and black tiger shrimp exports increased by 21% and 11%, respectively. In the first eight months of this year, the export value of processed shrimp products recorded a higher growth rate than fresh/frozen shrimp products.
“The US is still the largest import market for Vietnamese shrimp, accounting for 20%. Vietnam’s shrimp exports to the US started to slow down from May and decreased continuously from June to August.”
In August 2022, shrimp exports to the US reached more than USD 68 million, down 27%. Accumulated in the first eight months of this year, shrimp exports to the US reached more than USD 619 million, down 9% over the same period.
General shrimp imports from the US also tended to decrease after a sharp increase in imports in the first months of this year. US shrimp imports in July 2022 decreased by 12% compared to June to 67,782 tons. This is also 11.3% lower than the same period last year, according to data from the US National Oceanic and Atmospheric Administration (NOAA).
Inventories in the US have reached the maximum level because in the first months of the year many companies increased their imports after two years of being heavily affected by the COVID-19 epidemic and high freight rates. Sales in the US are also slow, so importers have not yet made many new orders.
Advantages for Ecuador and India
Inflation in the US, fluctuating exchange rates, and high selling costs have made it difficult for Vietnam’s shrimp exports to the US in recent months. Meanwhile, major competitors in the US market such as Ecuador and India have both advantages in freight rates because of their proximity and cheap shrimp.
“Meanwhile, shrimp exports to Japan in August this year recorded a growth of 120% to over USD 67 million. As of August, this year shrimp exports to this market reached USD 463 million, up 21% over the same period last year.”
Shrimp exports to Japan seem to be better than the US and EU markets due to lower freight rates. Japan prefers deeply processed products from Vietnam while rivals Ecuador and India in the Japanese market do not have this advantage assured VASEP.
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