Vietnamese shrimp has been encountering formidable competition from Ecuadorian shrimp in recent years. This shift in market dynamics prompts an examination by Vietnamese producers of the factors contributing to the challenges faced by Vietnamese shrimp compared to its Ecuadorian counterpart.

Ecuador’s Shrimp Industry Success

Ecuador’s shrimp industry has experienced remarkable growth and is now a prominent force in global shrimp exports. This transformation can be attributed to Ecuador’s strategic investments in research and development, resulting in the development of high-quality shrimp breeds.

Moreover, Ecuador’s strategic shift towards producing value-added shrimp products has enabled it to diversify its market presence, particularly by targeting premium markets such as the United States.

Challenges Confronting Vietnamese Shrimp Exporters

Vietnamese shrimp exporters are contending with a range of challenges, including declining market prices and diminished purchasing power. Factors such as prolonged hot weather and falling raw shrimp prices have led farmers to adopt a cautious approach to shrimp stocking, contributing to reduced export turnovers in key regions like Soc Trang and Ca Mau.

Additionally, the escalating costs associated with shrimp farming, including rising expenses for feed, labor, and land rental, further exacerbate the competitiveness gap between Vietnamese and Ecuadorian shrimp.

Cost Competitiveness

The increasing production costs in Vietnam’s shrimp industry pose a significant obstacle to maintaining competitiveness. Higher expenses for essential inputs such as feed, labor, and land rental, compounded by climate-related risks, have significantly raised operational costs for Vietnamese shrimp farmers.

These cost dynamics, coupled with challenges related to infrastructure deficiencies, underscore the difficulties faced by Vietnamese shrimp in competing with Ecuadorian shrimp on the global stage.

The rise of Ecuadorian shrimp as a dominant force in the global market underscores the evolving dynamics of the shrimp industry. Vietnamese shrimp exporters face formidable challenges related to cost competitiveness and market conditions, which require strategic adaptations to sustain their position in international markets.