Vietnam’s shrimp industry has emerged as a cornerstone of the nation’s export economy, with ambitions set high for 2025. The sector aims to achieve a remarkable $4.3 billion in export value, building on its robust performance in recent years. This target underscores the industry’s resilience and strategic importance, particularly in a global market rife with competition and economic uncertainties.

A Star Performer

In 2024, Vietnam’s shrimp exports showcased impressive growth, reaching 107 markets worldwide, an increase from 102 in the previous year. The top five markets—China and Hong Kong, the United States, Japan, the European Union, and South Korea—accounted for a substantial 76% of total export value. This diversification highlights the industry’s ability to penetrate and sustain its presence across diverse geographical regions.

The momentum continued into the first two months of 2025, with shrimp exports contributing $542.387 million, marking a significant 30.8% increase compared to the same period in the previous year. February alone saw exports reach $231.406 million, a 33.9% surge. These figures not only reflect the industry’s recovery from the price slumps of 2023-2024 but also its capacity to capitalize on favorable market conditions.

Navigating Market Dynamics

The European Union emerged as a noteworthy market, importing 376,875 tonnes of whiteleg shrimp and value-added products in 2024, a 4% increase from 2023. However, Vietnamese exporters face stiff competition from Ecuador and India, necessitating a focus on value-added products and market diversification to maintain their edge.

In China, once a stronghold for Vietnamese shrimp, economic headwinds have altered consumer behavior. The middle class, previously a reliable consumer base for shrimp, now exhibits price sensitivity amid rising living costs. This shift compels exporters to innovate, promoting premium products like lobster while revitalizing demand for traditional offerings such as whiteleg and giant tiger prawns.

Strategies for Sustained Growth

Industry leaders are optimistic about the 2025 outlook, citing favorable weather conditions, reduced disease incidence, and lower mortality rates in shrimp farming. Lê Văn Quang, CEO of Minh Phu Seafood Corporation, notes that the gap in raw material costs between Vietnam and competitors like Ecuador and India is narrowing, enhancing Vietnam’s competitiveness. He projects that with adequate preparation in raw materials and capital investment, the industry could surpass the $4 billion mark in 2025.

Companies like Sao Ta Foods Joint Stock Company are also ramping up production, with a 106% increase in processed shrimp output in February 2025 compared to the previous year. Sao Ta plans to expand into Halal and Middle Eastern markets, complementing its focus on established markets like the USA, EU, and Japan. Hồ Quốc Lực, the company’s General Director, emphasizes the importance of deep processing and technological investment to withstand competitive pressures from lower-cost producers.

Overcoming Challenges

To achieve the ambitious export target, the Vietnam Association of Seafood Exporters and Producers (VASEP) advocates for supportive policies that alleviate financial and administrative burdens on businesses and farmers. Key recommendations include stabilizing input costs, such as feed prices, and enhancing the quality of shrimp seeds. Additionally, VASEP calls for the promotion of sustainable farming practices, including the expansion of farming codes for traceability and the encouragement of giant tiger prawn cultivation alongside whiteleg shrimp.

On the international front, VASEP urges the government to leverage diplomatic and trade negotiations to bolster shrimp exports, particularly in key markets like South Korea and Japan. Furthermore, proactive disease monitoring and the establishment of disease-free production chains are deemed essential for meeting both domestic and export standards, as highlighted by Phan Quang Minh, Deputy Director of the Department of Animal Health.