The Vietnamese shrimp industry is navigating a complex competitive landscape as it grapples with price competition from Ecuadorian and Indian shrimp in both the United States and European Union markets. Added to this competitive pressure are significant challenges posed by disease outbreaks in farmed shrimp, which threaten to create shortages in raw materials for processors. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), these hurdles could impact the future stability of Vietnam’s shrimp export sector.

Export Growth in 2023

Despite these challenges, the shrimp export revenue for Vietnam reached approximately USD 1.6 billion in the first half of the year, reflecting a 6 percent increase compared to the same period last year. This positive growth highlights the resilience of the Vietnamese shrimp sector, even in the face of fierce international competition and domestic issues.

The performance of Vietnamese shrimp in key export markets has shown some signs of recovery. Notably, after a decline in May, the Chinese mainland and Hong Kong—the largest markets for Vietnamese shrimp—generated a revenue of USD 328 million in June. This figure represents a 17 percent increase year-on-year, indicating a potential rebound for Vietnamese shrimp in these crucial regions.

Pricing Pressures Ahead

Looking ahead, the forecast for Vietnamese shrimp exports to China remains cautious, with anticipated pricing pressures, especially concerning black tiger shrimp and whiteleg shrimp. The competition from other shrimp-producing nations, combined with domestic disease issues, may create challenging conditions for maintaining market share and profit margins in this vital market.

Despite the challenges, VASEP remains optimistic about the potential for growth in the second half of the year. Factors such as lower inventory levels, improved transportation conditions, and a recovery in demand and prices could positively impact the shrimp export landscape. If these conditions materialize, Vietnam could achieve an impressive shrimp export value of 4 USD billion in 2024, signaling a robust recovery for this critical sector of the economy.