Vietnam’s seafood exports witnessed a surge of 64% year-on-year in January, reaching nearly USD 750 million. This substantial growth is attributed to intensified shipments to key markets including China, the United States, and the European Union.

Expanding Market Reach

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), exports to China experienced a staggering threefold increase, solidifying China, including Hong Kong, as Vietnam’s second-largest seafood market, following Japan. Japan itself saw a commendable rise of 43% in imports from Vietnam, while exports to the US and the EU increased by 63% and 34% respectively.

Despite the promising surge in exports, Vietnamese shrimp companies are confronting several challenges that could potentially impede their recovery trajectory. A prevailing issue is the persistently weak global demand for seafood, which translates to low prices. Moreover, shrimp exporters continue to grapple with substantial inventories, posing difficulties in competing with their counterparts from India and Ecuador.

Health Concerns Impacting Output

In addition to market-related challenges, shrimp companies are also contending with diseases affecting shrimp output. This further compounds the complexities faced by exporters, dampening their prospects for growth and profitability.

Geopolitical tensions, notably in the Red Sea and the ongoing Russia-Ukraine conflict, have exacerbated challenges for seafood exporters. These tensions have led to a significant surge in shipping costs, adding to the operational costs and logistical hurdles faced by Vietnamese exporters.

Outlook for 2024

In light of the prevailing challenges, VASEP anticipates a modest increase in seafood exports for the year, projecting a total value of USD 9.5 billion. However, achieving this target will necessitate concerted efforts from stakeholders to address the multifaceted challenges and capitalize on emerging opportunities in the global seafood market.