Shrimp exports from Vietnam have shown promising growth in the first half of January 2024, according to recent data released by the Vietnam Association of Seafood Exporters and Producers (VASEP). The figures indicate a positive trend for the country’s shrimp industry, with notable shifts in top export destinations and emerging challenges on the horizon.

Rising Exports and Changing Market Dynamics

In the initial weeks of 2024, Vietnam’s shrimp exports surged to USD 97 million, marking a 2.1% increase compared to the same period last year. Notably, China and Hong Kong emerged as the leading importers, with a turnover of USD 17.69 million, representing an impressive growth rate of 138.3% over the previous year. This surge has propelled China to surpass the United States as the largest importer of Vietnamese shrimp, signaling a significant shift in market dynamics.

While the United States remains a key market for Vietnamese shrimp, accounting for 15.8% of total exports, the growth rate has been more moderate at 3.9% compared to the same period last year. Ms. Kim Thu, a shrimp market expert at VASEP, highlighted the steady increase in exports to the US, reaching over USD 15.25 million in the first 15 days of 2024, reflecting a 4% rise from 2023. However, challenges loom on the horizon, including geopolitical tensions and the possibility of anti-dumping duties.

Challenges and Opportunities Ahead

The American Shrimp Processing Association (ASPA) has initiated anti-dumping duty applications on frozen shrimp imports from Ecuador and Indonesia, as well as anti-subsidy taxes on shrimp from Ecuador, India, Indonesia, and Vietnam. This development could pose significant challenges for Vietnamese shrimp exporters in the coming months, particularly in the first half of 2024. Moreover, escalating tensions in the Red Sea have led to increased shipping rates, further complicating trade dynamics.

In response to these challenges, VASEP has called upon the Vietnamese government to actively support the industry in the US anti-subsidy investigation. Deputy Prime Minister Le Minh Khai has directed the Ministry of Industry and Trade to coordinate efforts and seek legal counsel to navigate the investigation process effectively. It is imperative for businesses to prepare comprehensively and remain adaptable to address the evolving challenges in the US market.