The aquaculture industry in Vietnam has seen a notable resurgence in 2024, with exports of aquatic products rising 9% year-on-year to reach USD 6.3 billion during the first eight months. Among the key drivers of this growth is shrimp, a critical product in Vietnam’s seafood export portfolio.

Shrimp Leads the Way

Shrimp exports, in particular, have shown impressive performance. Between January and August 2024, Vietnam exported USD 2.4 billion worth of shrimp, marking a 10% increase from the same period in 2023. This surge comes amid increased demand in major markets, particularly the United States and China.

In August alone, shrimp exports to the U.S. soared by 21% year-on-year. As the U.S. economy recovers, American retailers have been ramping up their orders, preparing for the end-of-year holiday season. Vietnam’s shrimp industry has also benefitted from challenges faced by its competitors. Exports to China, one of Vietnam’s largest markets, rose by 21%, as Ecuador, a major shrimp exporter, encountered quality issues.

Market Opportunities and Challenges

While shrimp exports are thriving, the broader aquaculture industry has also experienced growth. Pangasius exports reached nearly USD 1.3 billion, up 9% from a year ago, and tuna exports increased by 21% to USD 652 million. However, despite these gains, the sector continues to grapple with challenges, particularly rising production costs.

Raw shrimp prices have surged by 10-20% year-on-year, a significant burden for shrimp farmers. Additionally, the shrimp industry is facing disease outbreaks such as Enterocytozoon hepatopenaei (EHP), a persistent issue that threatens the quality and sustainability of production. These factors could hinder the industry’s growth trajectory if not managed effectively.

Global Market Dynamics

Vietnam’s seafood industry has benefitted from favorable market conditions and trade agreements, particularly in the U.S. The U.S. Department of Agriculture’s procurement program has boosted demand for white fish, indirectly supporting Vietnam’s shrimp exports. Moreover, a recent anti-dumping review by the U.S. Department of Commerce found that Vietnamese exporters were not in violation, exempting them from anti-dumping duties. This has provided a much-needed boost to the industry’s competitiveness in the U.S. market.