Vietnamese shrimp exports faced a challenging year in 2023, as indicated by the Vietnam Association of Seafood Exporters and Producers (VASEP). The industry struggled with high inflation in multiple export markets, decreased purchasing power, declining shrimp prices, and stiff competition from rivals like Ecuador and India. The outcome? Vietnamese shrimp exports in 2023 reached USD 3.4 billion, a 22% drop compared to the previous year.

Japan: A Decline in Demand

Shrimp exports to Japan experienced a continuous decline in 2023. The high inflation in the Japanese market and a sharp decline in the yen had a substantial impact on the purchasing decisions of Japanese importers. In total, shrimp exports to Japan in 2023 amounted to USD 511 million, reflecting a 24% decrease compared to 2022. However, there was a glimmer of hope in the last month of 2023, as shrimp exports to Japan recorded a 6% increase compared to the same period in the previous year.

China: A Moderate Decline

While shrimp exports to China exhibited a general downward trend in 2023, China remained one of the more resilient markets among the main importers. Vietnamese shrimp exports to China and Hong Kong reached USD 607 million, marking an 8% decrease compared to 2022.

USA: Mixed Results

Vietnamese shrimp exports to the United States had a turbulent year in 2023. Although they continuously decreased in the first part of the year, from July onwards, they saw double-digit growth. The entire year’s exports to the US amounted to USD 682 million, representing a 15% decrease compared to the previous year. However, the good news is that US shrimp import data for December 2023 recorded the sixth consecutive month of growth. Improving economic indicators, decreasing inventories, and higher year-end demand all contributed to this positive trend.

EU: Facing Economic Challenges

In 2023, the Russia-Ukraine conflict had significant repercussions in the European Union. Consumers in the EU tightened their belts due to economic uncertainties, resulting in increased prices and higher gasoline costs. The devaluation of the EUR also impacted shrimp consumption, leading Europeans to opt for cheaper food and smaller-sized shrimp. As a result, Vietnamese shrimp exports to the EU in 2023 declined sharply to USD 421 million, down 39% compared to the previous year.

Hope on the Horizon: 2024 Forecast

While 2023 presented its fair share of challenges for Vietnamese shrimp exports, there’s hope on the horizon for 2024. VASEP forecasts a positive outlook for the industry, with global shrimp supply continuing to grow steadily, notably from Ecuador. Although Ecuadorian shrimp production is expected to decrease slightly in 2024, Vietnamese shrimp exports are projected to recover and increase by 10-15% in the coming year. The anticipated recovery in demand, as inflationary pressures ease and importer inventories decrease, presents an opportunity for shrimp prices to rebound once more.