US tariffs create volatility, Vietnamese shrimp businesses "pivot" strategy

Competitive challenges

On August 1, Vietnam time, US President Donald Trump signed an executive order adjusting reciprocal tariffs on a series of shrimp-supplying countries, including Vietnam. This move is reshaping competition in the world's largest shrimp import market, opening up new space for countries that proactively adapt.

According to Ms. Kim Thu, shrimp market expert of the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam is currently the fourth largest shrimp supplier to the US. Although its output is not as high as that of competitors such as India or Ecuador, Vietnam stands out thanks to its strengths in processed shrimp and value-added products.

"This is the segment with the highest average selling price in the market, reaching 11.22 USD/kg in May 2025," said Ms. Thu.

The US adjusts reciprocal tariffs, creating opportunities and challenges for Vietnamese shrimp.

This advantage becomes even more evident when the largest supplier, India, has to bear a reciprocal tax of up to 25%, plus other taxes, bringing the total tax burden to 33.26%. This causes many US importers to seek to "escape" and switch to suppliers with more stable, quality products and transparent traceability, which are the strengths of Vietnamese shrimp.

In the context of global shrimp prices recovering and US consumers accepting a new price level, Vietnamese enterprises can better take advantage of quality, deep processing capabilities and product flexibility.

"With high added value, good food safety standards and stable relationships with importers, the market share of Vietnamese shrimp may not increase dramatically, but the opportunity to consolidate and maintain its position in the high-quality segment is completely possible," said Ms. Thu.

Despite the opportunities, Vietnamese shrimp still faces many major challenges. The 20% reciprocal tax imposed by the US on Vietnamese shrimp, combined with the risk of anti-dumping and anti-subsidy lawsuits (with no final conclusion), is a significant barrier. If the final outcome is unfavorable, the total tax rate could be even higher than it is now, eroding the competitiveness and profits of businesses.

Cost and margin pressures are also a difficult problem. If the increased tax costs cannot be passed on to consumers, businesses will have to sacrifice profits.

Strategic Pivot Business

According to Ms. Kim Thu, in response to the new tariff map, Vietnamese shrimp businesses have proactively reshaped their strategies. Instead of competing on price, many businesses choose to focus on high-value-added product lines such as deep-processed shrimp, organic shrimp, and specialty products for retail channels and high-end restaurants.

At the same time, market diversification is being promoted to reduce dependence on the US. Exports to the EU increased by 25% and to Japan by 11% in the first 5 months of the year, taking advantage of incentives from EVFTA and UKVFTA to access markets with high requirements but more stable policies.

ESG (Environment – Society – Governance) strategy is also being invested in by some businesses in the long term to meet the increasingly stringent requirements of large supermarket chains. This is a sustainable direction, helping to create long-term competitive advantages.

"In general, the US market is not a game of price alone. Long-term importers still appreciate the stable supply, reliability and real value of the product. If we steadfastly pursue differentiation, high quality and sustainable investment, Vietnamese shrimp will still be able to maintain its role as a strategic, irreplaceable supplier in this important market," the expert said.

Thu An

Source: https://doanhnghiepvn.vn/kinh-te/thue-quan-my-tao-bien-dong-doanh-nghiep-tom-viet-xoay-truc-chien-luoc/20250807032305292