Vietnam accelerates shrimp exports to the United States

According to statistics, among the major shrimp exporting countries to the US market in 2024, only Vietnam recorded positive growth.

Vietnam's breaded shrimp exports to the United States have increased sharply.

On February 20, 2024, the Vietnam Association of Seafood Processing and Export announced that, according to statistics, imports of shell-on shrimp into the US market decreased mainly from Ecuador. Ecuador's supply in this segment decreased by 17% compared to 2023.

Meanwhile, India's supply of shell-on shrimp also decreased (13% compared to 2023), Indonesia's supply remained unchanged, and Vietnam's supply increased slightly (5% compared to 2023). Ecuador continued to dominate this product segment with a 48% market share.

For the peeled shrimp segment, the situation is slightly different. Supply from Ecuador and India increased slightly (2% each), supply from Indonesia decreased by 15%, and supply from Vietnam increased by 21%. India continues to dominate this product segment with a 57% market share.

US shrimp import figures from 2019-2024 - (Photo: VASEP).

India also holds the leading position in the steamed and seasoned shrimp segment with a 40% market share. Supply from Indonesia in this segment decreased by 16%, while supply from Vietnam remained stable.

Accordingly, Vietnam is gradually approaching Indonesia's second position in this segment, and if this growth trend continues, Vietnam could surpass Indonesia by 2025. Ecuador's market share remains small (4%), but its supply has grown by 20% annually.

Although Indonesia remains the largest supplier of breaded shrimp to the United States in 2024 with a 42% market share, Vietnam is also competing with Indonesia in this segment. Vietnam's breaded shrimp exports have increased by 33%, while Indonesia's supply has only increased by 5%.

With a current market share of 28%, Vietnam and Indonesia account for 70% of the market. Supply from India has doubled but still only holds a 4% market share. Supply from Ecuador has decreased by 20% compared to 2023 and now accounts for 7%.

Opportunities for Vietnamese businesses to thrive

With strong growth prospects in 2024, and since steamed, seasoned, and breaded shrimp are not subject to tariffs, Vietnamese businesses could consider boosting exports of this product to the United States.

In 2024, India faced several production challenges due to outbreaks of bacterial diseases, such as IHHNV and WSSV. Ecuador also faced other market challenges, such as power outages and El Niño conditions. Both India and Ecuador experienced trade issues and logistical delays that complicated trade flows.

Vietnamese shrimp exports are expected to face reduced competition in the US market by 2025.

This has eased the competitive pressure on Vietnamese shrimp in the US market. Among the top shrimp suppliers to the US in 2024, only Vietnam recorded positive growth. Other suppliers such as Indonesia and Thailand also saw a sharp decline in shrimp exports to the US market in 2024.

The Vietnam Association of Seafood Processing and Export believes that Donald Trump's re-election as US President and the introduction of a series of new tax regulations could create both opportunities and challenges for Vietnamese shrimp exports in the coming period.

With plans to increase tariffs on goods imported from China, the United States may reduce imports of products from that country and seek alternative sources of supply, including Vietnam. In addition, China, by reducing imports from the United States, may shift to importing products from Vietnam as a replacement.

"Regarding challenges, Vietnamese businesses also face US trade defense measures, which may include anti-dumping duties, countervailing duties, and stringent product quality requirements, forcing Vietnamese businesses to comply with stricter food safety and hygiene standards, leading to increased production and inspection costs," the Vietnam Association of Seafood Processing and Export emphasized.

In 2024, the United States imported 762,804 tons of shrimp, a 3% decrease from 2023 and a 15% decrease from the peak of 2021. However, this figure was still 9% higher than in 2019.

Source: https://congthuong.vn/viet-nam-tang-toc-xuat-khau-tom-vao-hoa-ky-374760.html