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Vietnam’s shrimp industry is witnessing a notable turnaround as it strides into the first quarter of 2024, showcasing evident improvements highlighted by significant increases in exports to major global markets.
Export Surge
Data from the General Department of Vietnam Customs reveals a substantial surge in shrimp exports, reaching USD 620 million during the period of January to March. This marks a 24 percent increase compared to the same period last year. Notably, the surge in earnings is particularly pronounced in exports to the United States and China, rising by 26 percent and 140 percent, respectively.
In the Chinese market, Vietnam has strategically positioned itself to capitalize on shifting import trends. Kim Thu, representing the Vietnam Association of Seafood Exporters and Producers (VASEP), notes that China has diverted its imports away from its largest shrimp supplier, Ecuador, in favor of Vietnamese shrimp. Despite facing price competition from rival suppliers, Vietnamese shrimp is increasingly preferred by Chinese buyers due to its perceived higher quality, thereby justifying premium pricing.
US Market Prospects
Experts within the shrimp industry anticipate a stabilizing trend in sales of fresh and frozen seafood within the US market throughout 2024. This follows a challenging period in 2023 characterized by inflation and reduced consumer spending. Vietnam emerges as a promising supplier in the US market, particularly given the positive trajectory of diplomatic relations between the two countries. Compared to traditional shrimp exporters to the US such as India, Ecuador, and China, Vietnam is gaining traction due to its perceived reliability and quality.
A significant portion of Vietnam’s shrimp export value stems from value-added processed shrimp products, constituting approximately 40-45 percent of the total annual shrimp export value. Vietnamese shrimp enterprises boast a high level of processing sophistication, positioning them favorably in markets like Japan where quality is paramount.
Ongoing Challenges
Despite the evident success, the industry is urged to remain vigilant in the face of stiff competition from other global players. Former VASEP Chairman, Hồ Quốc Luc, emphasizes the need for sustained efforts, pointing out that while Vietnamese shrimp products boast commendable quality, their prices remain relatively high. To maintain competitiveness, farmers and exporters are advised to explore avenues for enhancing quality while simultaneously optimizing production costs.