Workers process shrimp for export at Minh Phu Seafood Corp. - Photo from Vietnam News/ANN
HANOI: Vietnam’s shrimp exports grew in the first half of this year, but the market is facing competition from other countries in the world.
According to the Vietnam Association of Seafood Exporters and Producers (Vasep), in the first six months of this year, the export value of shrimp reached about US$1.6bil, up 6% year-on-year (y-o-y).
In June alone, the value reached US$344mil, an increase of 5% y-o-y.
During the first half, mainland China and Hong Kong, the largest market for Vietnamese shrimp, showed a recovery in shrimp imports in June, after decreasing in May.
In the first half of the year, the shrimp exports to those markets reached US$328mil, 17% higher than the same period last year.
However, by the end of the year, Vietnam’s shrimp exports to the market will be under pressure on price, especially for black tiger shrimp and white-leg shrimp.
Competition from producers such as Ecuador, India and Indonesia is expected to increase.
The second-largest market for Vietnamese shrimp is the United States.
In the first half of the year, shrimp exports to the United States grew 1% y-o-y to US$303mil. After decreasing in May, exports to the United States recovered in June.
But shipping costs have increased dramatically, up by 40% from May due to conflict in the Middle East.
In the US market too, Vietnamese shrimp is facing strong price competition from shrimp from Ecuador, India and Indonesia.
Vasep expects that the US demand for Vietnamese shrimp may increase slightly in the third quarter of this year when importers increase purchasing for year-end festivals.
Meanwhile, shipments to Japan dropped 3% to US$229mil, while those to South Korea dropped 10% to US$149mil.
In Japan, Vietnam’s value-added goods still maintain a better competitive advantage compared with other suppliers such as India and Ecuador.
According to Vasep, the demand from Japan and South Korea is expected to increase slightly from September to meet the year-end demand.
For the European Union (EU), after a slow first quarter, shrimp exports increased solidly in the second quarter.
In the first six months, exports to the EU reached US$217mil, an increase of 13% y-o-y. In June, the value stood at US$52mil, up by 31%.
The EU demand for shrimp imports is expected to continue to increase in the second half.
However, Vasep said that besides facing price competition from Ecuadorian and Indian shrimp in the United States and EU, Vietnamese shrimp face an additional problem: disease outbreaks in farmed shrimp, potentially causing a shortage of shrimp for processing.
Companies may be forced to reduce exports to the United States even though the market is a lucrative one. Meanwhile, they will focus on nearer markets such as Japan, South Korea, Australia and China.
In the second half of the year, it is expected that the main markets of Vietnamese shrimp will have better market conditions, such as lower inventory, easing of transportation difficulties and recovery in demand and prices. — Viet Nam News/ANN
