The year 2023 witnessed a significant decline in shrimp exports from Vietnam to China, yet there is optimism for a resurgence in the first few months of this year. Vietnam’s shrimp industry, like many others, faced challenging times, with exports to key markets such as the US, Japan, and the EU also experiencing decreases.

Shrimp Exports to China in 2023: A Decline Amid Global Challenges

In 2023, Vietnam’s shrimp exports to China and Hong Kong reached a total value of USD 607 million, marking an 8% decrease compared to the previous year. Although a decline was observed, it was comparatively mild when compared to other major markets. During the same period, shrimp exports to the US decreased by 15%, to Japan by 24%, and to the EU by a substantial 39%.

China’s Increasing Shrimp Imports and Growing Demand

Despite the dip in Vietnam’s shrimp exports, China’s own shrimp imports continued to rise throughout 2023. This trend was attributed to a rebound in shrimp consumption following the Chinese Government’s decision to abolish the Zero Covid policy. China now stands as the world’s largest shrimp import market, with a significant import volume of 917,000 tons during the first 11 months of 2023.

Furthermore, despite the high volume of imports, the price of farmed shrimp in China surged by the end of 2023, indicating robust domestic demand.

Chinese Shrimp Production on the Rise

The strong demand from the domestic market has led Chinese shrimp farmers to boost production. Expert Robins McIntosh estimates that in 2023, China’s whiteleg shrimp production reached approximately 1.05 million tons, with black tiger shrimp production hitting the range of 150-160 thousand tons.

Looking ahead to 2024, it is expected that China’s whiteleg shrimp production will rise to 1.2 million tons, while black tiger shrimp production may reach 200,000 tons. Consequently, China is poised to potentially surpass Ecuador to become the world’s leading shrimp producer, although its significant consumption demand will continue to necessitate substantial imports.

Challenges for Vietnamese Shrimp Exports to China

Compared to other shrimp suppliers such as Ecuador and India, Vietnamese shrimp faces a price disadvantage in the Chinese market due to its higher production costs. However, Vietnam has logistics advantages, particularly significant amidst rising shipping costs in the Red Sea, which could potentially affect Ecuador’s shrimp exports to China.

Nonetheless, escalating tensions in the Red Sea could also impact Vietnamese shrimp exports to the US and the EU. Additionally, the American Shrimp Processing Association (ASPA) has initiated an investigation into anti-subsidy taxes on imported shrimp, including those from Vietnam, which may affect exports to the US in the early part of this year.

Vietnamese Shrimp Industry’s Response

In light of these challenges, Vietnamese shrimp industry enterprises are increasingly focusing on the Chinese market, including those that have had limited exports to China in the past. Leading Vietnamese shrimp exporter, Fimex VN, is a notable example, as they have outlined a market strategy for 2024 and beyond, with a commitment to bolster their presence in the Japanese market while also gradually expanding into the Chinese market.