Shrimp exports: High expectations from the billion-person market.

Báo Công thương•28/12/2023

Potential market

The Chinese market is becoming increasingly important for Vietnamese seafood businesses. In recent years, China has been among the top three importers of Vietnamese seafood, ranking only behind the US and Japan.

According to data from Vietnam Customs, as of the end of November 2023, Vietnam's shrimp exports to China and Hong Kong reached US$569 million, a decrease of 8% compared to the same period last year.

According to Ms. Kim Thu, a shrimp market expert at the Vietnam Association of Seafood Processing and Export (VASEP), the demand from the Chinese market has been unstable this year.

Accordingly, Vietnam's shrimp exports showed positive growth for three months from June to August, then reversed course and declined in September, October, and November. However, the decline was not as sharp as in the early months of the year. China and Hong Kong experienced the lowest declines among Vietnam's main shrimp importing markets.

Xuất khẩu tôm: Nhiều kỳ vọng từ thị trường tỷ dân

Shrimp exports to China still have significant growth potential.

China's demand for shrimp imports remains strong, but due to the influx of numerous suppliers offering low prices, Vietnamese shrimp is struggling to compete on price. In the last month of this year, Vietnamese shrimp exports to this market are expected to decrease compared to the same period last year.

"Although shrimp exports to China and Hong Kong decreased in 2023 compared to 2022 (a year when shrimp export value reached a record high), they still increased compared to previous years," Ms. Kim Thu shared.

According to Mr. Truong Dinh Hoe, General Secretary of VASEP, the fisheries sector faced many challenges in 2023. While many important markets experienced sharp declines, China saw the least decline. Therefore, it is becoming a leading important market for Vietnamese seafood, including its key export product, shrimp.

Increase the production of processed products.

VASEP forecasts a positive outlook for shrimp exports in 2024. Currently, shrimp supply from Ecuador has been stagnating and showing a slight downward trend. Vietnam's shrimp exports are expected to recover and increase slightly by 10-15% in 2024.

In terms of opportunities and potential, the Chinese market still holds significant growth prospects. Economic experts assess that China will become increasingly dependent on imported seafood, similar to the model of Western countries. China's shrimp consumption is substantial, even exceeding that of the US and Europe. In 2023, it was estimated that the country imported a massive 1 million tons of shrimp, primarily for processing and domestic consumption, with exports being almost negligible.

Furthermore, the General Administration of Customs of China recently announced a list of over 800 Vietnamese seafood processing enterprises eligible to export to China. Simultaneously, China approved product codes for 40 facilities packaging live crabs and lobsters, and 5 facilities packaging tiger prawns, covering 128 types of products and 48 species of seafood from Vietnam. This provides Vietnamese seafood export businesses with opportunities to increase exports in the coming period.

Mr. Truong Dinh Hoe, General Secretary of VASEP, believes that to take advantage of opportunities, businesses must strengthen their strong products such as organic, sustainable, and value-added products, be flexible in export methods, and choose appropriate payment methods. At the same time, they should update themselves on import policies from the central and local governments. In the short term, they need to leverage geographical advantages to boost shrimp exports to the Chinese market, especially tiger shrimp.

Furthermore, it is necessary to strengthen trade activities connecting businesses in both countries, with greater attention paid to trade at the local level. In addition, there needs to be an exchange and sharing of information on market needs and regulations, especially when there are changes in import and export policies.

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