Vietnam’s shrimp industry is navigating a competitive landscape dominated by foreign rivals. Amidst this challenge, the industry is embracing deep processing, a strategy proving fruitful for processors and exporters alike.

Technological Advancements Bolster Vietnam’s Position

Ho Quoc Luc, General Director of Sao Ta Foods, highlights Vietnam’s prowess in deep shrimp processing. Modern technologies have enabled Vietnamese shrimp to retain its market share against the backdrop of aggressive competition from Ecuador, India, and Indonesia.

Luc emphasizes the importance of diversifying deeply processed shrimp products to stay ahead. This strategy, he believes, is vital for Vietnam to maintain its foothold and effectively compete with countries boasting lower production costs.

Meeting Consumer Preferences with Advanced Processing

Kim Thu from the Vietnam Association of Seafood Exporters and Producers (VASEP) underscores the significance of processing technology in meeting consumer preferences. She cites the Chinese market’s preference for visually appealing products like steamed giant tiger shrimp as an example.

Data from VASEP reveals a staggering 71% year-on-year surge in Vietnam’s shrimp exports in the first two months of 2024. Notably, exports to China and Hong Kong soared by 275%, indicating the industry’s resilience and adaptability.

Embracing Innovation and Skilled Workforce

Luc emphasizes the role of modern technology and skilled workers in perfecting shrimp products. Vietnam’s shrimp industry continues to innovate, enhancing processing capacity and product diversity.

Vietnamese businesses are leveraging the country’s geographical proximity to key markets. While concerns exist about competition from Ecuador and India in the US and European markets, Vietnam’s focus on Japan and South Korea, coupled with product design and quality, ensures a strong presence in these Northeast Asian markets.

Mitigating Risks and Embracing Sustainability

Luc addresses concerns about overdependence on processing, emphasizing the importance of risk mitigation and diversification. Additionally, Vietnam’s strength in ecological shrimp farming positions it well to meet global demand for green and healthy products.