The Vietnamese seafood sector has shown remarkable resilience this year, with shrimp exports leading the charge. Amid a dynamic international market, the nation’s shrimp industry is poised to benefit from global trends that favor higher prices and sustained demand. However, challenges remain as trade regulations and global competition test the industry’s adaptability.

A Shrimp-Led Export Boom

Vietnam’s aquatic exports are on track to hit USD 9.5 billion by year-end, with a notable 20% surge in August alone. The total export value reached USD 6.3 billion over the first eight months of the year, a 9% increase compared to the same period in 2022. Shrimp, the sector’s standout performer, saw a robust 30% growth, far surpassing other key exports such as tra fish, tuna, and marine fish.

Such figures reflect not only the resilience of Vietnam’s seafood sector but also the pivotal role shrimp plays in the broader economic picture. Its growth is fueled by an advantageous combination of global trends and domestic market conditions.

International Demand and Price Prospects

At the recent Vietnam Fisheries International Exhibition (Vietfish), interest from international buyers was conspicuous, according to Le Hang, Communications Director at the Vietnam Association of Seafood Exporters and Producers (VASEP). This event, held in August, underscored the continued appetite for Vietnam’s shrimp exports.

Moreover, forecasts indicate a global decline in shrimp production in 2024, a trend likely to push prices higher. Vietnam’s shrimp exporters are expected to capitalize on this shift, strengthening their position in key markets such as the United States and China.

Navigating Shifting Markets

While demand remains strong, Vietnam’s shrimp exporters are also benefiting from favorable logistical developments. Freight costs, which had surged earlier in the year, are now easing, allowing producers to ship more efficiently. The shift in U.S. orders, alongside improving export conditions to China, has provided further impetus to this growth. These dynamics have offered firms the confidence to focus on fulfilling their end-of-year export targets with renewed vigor.

Headwinds on the Horizon

Despite these gains, significant hurdles remain. The European Union’s yellow card for illegal, unreported, and unregulated (IUU) fishing continues to cast a shadow over Vietnam’s seafood exports. Shrimp exporters also face anti-subsidy and anti-dumping duties, which complicate access to lucrative markets.

In response, businesses are recalibrating their strategies, diversifying export markets to reduce dependency on traditional buyers such as the U.S. and the EU. This strategic shift is crucial in mitigating risks while maximizing opportunities in emerging markets.