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| Currently, the US is Vietnam's largest shrimp export market, with the main products being white-leg shrimp and black tiger shrimp. (Source: Vietnam Agriculture Newspaper) |
The US domestic shrimp output only meets 10% of demand; the remaining 90% comes from imports from Central American, South Asian and Southeast Asian countries, including Vietnam. This is the information shared by Mr. Pham Quang Huy, Agricultural Counselor - Vietnam Trade Office in the US at the "Online Forum connecting production, processing and export of brackish water shrimp in Vietnam" recently held.
Currently, the US is also Vietnam's largest shrimp export market, with the main products being whiteleg shrimp and black tiger shrimp. However, in the first 6 months of this year, Vietnam's shrimp export turnover to the US market reached 298 million USD, down 38.2% compared to the same period in 2022, according to data from the Ministry of Agriculture and Rural Development.
Mr. Pham Quang Huy said there are both objective and subjective reasons leading to this decline.
Objectively, the inflation situation in the US has caused people to tighten their spending and switch to cheaper goods. In addition, importers still have a lot of inventory after the hoarding period due to the Covid-19 pandemic. At the same time, the supply to the US cheap shrimp market from countries such as India, Ecuador, and Indonesia has increased.
Subjectively, Mr. Huy said that Vietnam's shrimp farming costs are high compared to its competitors due to small farming areas, poor quality of breeds, high density, and increased input feed costs. At the North American Seafood Fair held last March, shrimp prices from other countries were 1.5-2 USD/kg cheaper than Vietnam, making it difficult for Vietnamese businesses to find export orders.
However, from now until the end of the year, Vietnam's shrimp exports to the US are expected to recover with many bright spots from the market. Mr. Huy assessed that in the second half of 2023, interest rates are expected to not increase and inflation expectations are gradually controlled. Purchasing power in the US market is also gradually recovering and will soon improve. In addition, the advantage of the US market is transparent and stable information and policies. The reputation of Vietnamese export enterprises has also been affirmed after many years of exporting to the US.
To boost shrimp exports to the US market, Mr. Pham Quang Huy recommended that domestic enterprises need to strengthen linkages along the value chain from breeding, production, processing, distribution and consumption of products; develop shrimp farming models to help reduce product costs, approaching the prices of competitors, etc.
In the context of Vietnamese shrimp prices being higher than many other countries, Mr. Huy suggested that Vietnam should focus on developing native shrimp species with unique characteristics that competitors do not have; at the same time, increase processing content, diversify products (breaded shrimp, instant shrimp, tempura...) to meet convenience during use.
In particular, the agricultural counselor of the Vietnam Trade Office in the US reminded businesses about the issue of trade defense when exporting shrimp to the US. Since 2004, Vietnamese shrimp has been investigated by the US Department of Commerce and concluded to be subject to anti-dumping tax from 4.3% to 25.76%. However, the tax rate applied to each business will be reviewed and adjusted over time.
In case of being involved in lawsuits/legal disputes, Mr. Pham Quang Huy recommends that businesses actively cooperate with US authorities to provide documents proving the business's operations; regularly exchange with Vietnamese authorities to grasp necessary information and receive specific instructions.
At the same time, businesses need to proactively build a traceability system for the production line from raw shrimp to finished products; keep documents, transparent and convenient accounting systems to be able to supply in a short time, meeting the requirements of the US side.
| Vietnam has become the world's second largest shrimp exporter, with an export value accounting for 13-14% of the total global shrimp export value. Every year, the shrimp industry contributes about 40-45% of Vietnam's total seafood export value, equivalent to 3.5-4 billion USD. In 2022 alone, our country's shrimp export turnover set a record at 4.3 billion USD, up 11.2% compared to 2021. However, in the first 6 months of 2023, shrimp export turnover reached more than 1.5 billion USD, down 31.9% compared to the same period in 2022. Vietnam's major export markets all recorded double-digit declines, mainly due to inflation and decline in purchasing power, plus large inventories. |
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