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Tag: shrimps

  • China Overtakes US as Vietnam’s Leading Shrimp Export Market in First Half of the Year

    China Overtakes US as Vietnam’s Leading Shrimp Export Market in First Half of the Year

    China has emerged as a vital avenue for Vietnamese shrimp exporters, importing nearly US$595 million worth of shrimp, as reported by the Vietnam Association of Seafood Exporters and Producers (VASEP). A supply shortage in China, coupled with a seasonal spike in demand for premium seafood delights like lobster, has created an auspicious window for Vietnam’s seafood industry.

    Captivating Competitive Edge

    The geographic proximity of Vietnam to China adds to the appeal, allowing exporters to offer competitive prices that capture the attention of Chinese importers. Traditional markets remain steady, with Japan, South Korea, and the European Union contributing to this growth. Of particular note, Japan—the third-largest market for Vietnamese shrimp—has showcased a robust appetite for deeply processed, ready-to-eat shrimp products that cater to busy lifestyles.

    A tantalizing lobster on display in Ho Chi Minh City, showcasing the allure of premium seafood. Photo by VnExpress/Quynh Tran

    Navigating New Trade Waters

    Export dynamics to Europe have also enjoyed a boost thanks to the E.U.-Vietnam Free Trade Agreement. This agreement has positioned Vietnam favorably against other Southeast Asian competitors like Indonesia and Thailand. Conversely, the United States—once the leading market—has shown signs of decline in shrimp imports. Although exports to the U.S. increased by 13% to $341 million in the first half of the year, much of this surge was attributed to a pre-emptive rush in May, as businesses scrambled to fulfill orders ahead of the new tariffs introduced by the Trump administration.

    In June, the situation took a turn, with exports plummeting by 37%. In April, the Trump regime imposed a 10% retaliatory tariff on various imports, which is set to escalate to 20% on shrimp from August 1. In addition to this tariff hike, Vietnamese exporters face the looming threat of preliminary anti-dumping duties that could exceed 35%, alongside countervailing duties expected by year’s end.

    Shifting Strategies for Sustainability

    Amid these turbulent market conditions, VASEP has highlighted that U.S. tax policies are instilling caution among American importers, complicating pricing and order planning for Vietnamese businesses. This upheaval has prompted many seafood companies to explore alternative markets, with China appearing as an increasingly attractive option.

    Global shifts are also pressuring domestic shrimp prices. The cost of large black tiger shrimp has recently soared to a record VND201,000 (US$7.69) per kilogram, primarily driven by limited supply against consistent demand. Overall, Vietnam’s shrimp exports surged by 27% in the first half of the year, totaling $2 billion. However, VASEP forecasts a slowdown in exports as July approaches, following the rush of orders in May and June.

    With the U.S. delaying tariff increases until early August, some firms were able to expedite shipments, but the future remains uncertain, hinging on the final tariff levels and the capacity to diversify markets effectively. Many shrimp producers are now focusing on revising their export strategies to reduce dependency on the U.S. market, leveraging trade agreements like the EVFTA and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

    A notable trend is the emphasis on deeply processed products, which attract higher value. Major markets like the U.S. and the EU are implementing stricter traceability and origin requirements, driving firms to enhance productivity throughout their supply chains—from certified farming practices and disease control to optimized processing and logistics.

    As Vietnam’s seafood industry navigates a volatile global market, the implementation of proactive financial and legal strategies will be crucial for sustaining growth and competitiveness.

    Questions & Answers

    How has China become a significant market for Vietnamese shrimp?
    China’s domestic supply shortage, combined with a rising demand for premium seafood products, has opened the door for Vietnamese exporters, leading to substantial imports worth nearly US$595 million.

    What impact have U.S. tariffs had on Vietnamese shrimp exports?
    The new tariffs imposed by the U.S. have caused export volatility, with a significant drop in shipments in June following a May spike as businesses rushed to beat the tariff deadline.

    What strategies are Vietnamese seafood businesses adopting for future growth?
    Producers are shifting focus away from reliance on the U.S. market and are capitalizing on trade agreements like the EVFTA, while also prioritizing the production of deeply processed shrimp products to meet evolving market demands.

  • Shrimp exports surge 13% in 10 months

    Shrimp exports surge 13% in 10 months

    Vietnam’s shrimp exports soared by 13% year-on-year to US$3.2 billion in the first 10 months of 2024.

    They reached $394 million in October alone, a 24% increase from a year earlier, according to the Vietnam Association of Seafood Exporters and Producers.

    Shipments to major markets saw double-digit growth in the first 10 months, signaling a strong recovery in demand.

    Notably, shrimp exports to mainland China and Hong Kong totaled $676 million during the period, a year-on-year growth of 31%.

    Lobster exports surged by an extraordinary 157% to $298 million in the same period as China’s consumer stimulus policies have increased its imports of this product.

    Shrimp exports to the EU rose by 32% to $408 million, a 17% year-on-year increase. Demand from this market has experienced consistent growth since April.

    The U.S. imported $646 million worth of shrimp from Vietnam in the first 10 months, up 10% from a year ago.

    A decline in supply from the three largest producing nations, improved market sentiment and reduced inventories have boosted the U.S.’ shrimp imports.

    Prices are expected to rise with U.S. President-elect Donald Trump’s proposed import tax increases, so businesses there are in a rush to increase imports before the new tariffs take effect.

    Shrimp exports to Japan and the Republic of Korea also showed significant recovery in October, growing by 18% and 28% year-on-year, respectively, after a period of instability.

    Export shrimp prices, especially for white-leg shrimp, are on an upward trend, significantly improving profit margins for businesses.

    Additionally, processed shrimp products are experiencing robust growth, highlighting Vietnamese enterprises’ focus on high-value products.

    With this growth trajectory, shrimp exports are likely to reach $4 billion this year.

  • Shrimp processing giant posts large revenue increase

    Shrimp processing giant posts large revenue increase

    Minh Phu Seafood, one of the country’s biggest shrimp processors, reported a 9 percent rise in revenues to over VND6.1 trillion ($269 million) in the first half of the year.

    The HCMC company said however the pandemic is causing disruption in sales, especially in North America, its biggest market.

    Its net profit rose nearly 20 percent to VND276 billion.

    It received a VND336-billion import tariff refund after the U.S. in February withdrew an accusation that one of its subsidiaries, Mseafood, had violated anti-dumping regulations.

    The company had to deposit the sum while it disputed the case.

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  • Thai producers plan to recover shrimp output in H2, as prices rise

    Thai producers plan to recover shrimp output in H2, as prices rise

    Thai producers plan to increase their shrimp output in the second half of this year, after output from farms dropped year-on-year in the first two quarters of 2017, industry sources told us.

    Heavy rain, which has caused floods in several provinces, as well as ongoing disease issues, limited the growth of Thai shrimp production in the first half of this year, Thai Union Group’s shrimp unit managing director, Preerasak Boonmechote, told us during a recent visit to the firm’s processing plant near Bangkok, before the Thaifex trade show in Bangkok.

    Thai shrimp production is expected to grow 5% overall this year, lower than earlier expectations of 10-15% output growth, Boonmechote said, pointing to the fact that heavy rain had limited the country’s production growth plan.

    In 2016, Thailand’s production increased around 50,000 metric tons to 300,000t, Robins McIntosh, senior vice president of Thai agribusiness and food processing giant Charoen Pokphand Foods, said in January, at the Global Seafood Market Conference in San Francisco, California. According to Thai Union’s estimates, Thai production in 2016 totaled slightly less, about 250,000t.

    Meanwhile, Thai shrimp prices, which are on the rise again, are expected to either remain stable or grow 5% y-o-y in 2017, according to Boonmechote.

    Output growth

    Thai Union plans to increase its shrimp production 5% this year, up from 65,000t in 2016, Boonmechote said.

    Thai Union owns three shrimp processing plants in Thailand, which currently operate at 60-70% of their capacity, said Boonmechote. The firm, which is Thailand’s largest shrimp producer, plans to expand sales to the retail sector, particularly in Thailand and Korea, as well as in Australia, China and Middle East.

    Another large Thai shrimp producer, Marine Gold Products, plans to increase its shrimp production to 25,000t in 2017, up from 20,000t in 2016.

    Marine Gold has also introduced some new value-added products (see the photo of the firm’s new Thai green curry ready-to-eat product), mainly for the local market, as well as for China, Taiwan, Korea and Japan.Heavy rain in Thailand has caused a decrease of production compared with 2016, but the firm aims to recover its output in the second half of the year, Panuwat Wat Tanakijrungrueang, a marketing executive with the firm, told us during the Thaifex trade show.

    Several other large Thai shrimp processors told us they are looking to up production, as well as diversify to other products, during Thaifex.

    An executive with May Ao Group said the firm plans to increase its output around 5-10% y-o-y in 2017, from 12,000t in 2016.

    Thai Royal Frozen Food, which produced about 20,000t of shrimp last year, also plan to increase its production, with a 10-20% rise planned for 2017, an executive with the company told us, during Thaifex.

    Another processor, Lee Heng Seafood, also aims to increase its shrimp output in 2017 from almost 3,600t last year, having built a second processing plant in the Phang-Nga province, Thailand, the company said, during the show.

    Other processors are looking at more diversification.

    Thai frozen food manufacturer Surapon Foods is currently building a new frozen sushi and chicken processing plant, as it plans to focus more on value-added seafood and chicken products, Auhtaphon Ratana Arporn, assistant managing director at the firm’s trading arm Surapon Finest.

    The firm is investing THB 200 million ($5.8m) in 2017 to build the new plant and renovating its other plants.

    The firm has recently reorganized its structure and introduced a new value-added product line. It also launched a new logistic firm, named Mobile Logistics, which distributes frozen products across the Thai market, Ratana said.

    Meanwhile, PTN Group has started the sale of live Osaki oysters on the Thai market.

    The firm was promoting the new Japanese farmed product at the Thaifex trade show, targeting both retail and Horeca sector. It also sells breaded oysters and salmon nuggets.

  • Vietnam fish exporters aim to crack Europe

    Vietnam fish exporters aim to crack Europe

    The Vietnam Association of Seafood Exporters and Producers (VASEP) is showcasing Vietnamese seafood products at the Seafood Expo Global, which is being held in Brussels, Belgium, from Tuesday to Thursday. In a 264sq.m. booth, the association introduced Viet Nam’s seafood specialties, including tra fish (known as pangasius), shrimp, tuna and tilapia fish, as well as cattle fish, octopus and dried seafood products, all of which come from 25 Vietnamese seafood producers and exporters.

    The pavilion attracted foreign businesses, which shared experiences in trading aquatic and seafood products.

    In the context of a pangasius crisis in Spain and the Carrefour supermarket chain ceasing to sell Vietnamese pangasius, VASEP and the Ministry of Agriculture and Rural Development held a press conference at the exhibition to provide clear information about Viet Nam’s pangasius processing and exports to European partners.

    In his interview with Vietnam News Agency correspondents, VASEP general secretary Truong Dinh Hoe said the press conference aimed to create a correct information channel to deal with the communication crisis on pangasius, targeted at increasing exports of Vietnamese aquatic and seafood products to Europe.

    Alfons van Duijvenbode, a Dutch consultant, said European consumers have a bad impression of Vietnamese pangasius due to false information on social media.

    In recent years, the consumption of Vietnamese pangasius has fallen in the EU, meanwhile other fish have maintained or even increased sales volum, he said.

    He suggested the Vietnamese aquaculture industry interact more with consumers to provide them exact information about the products.

    Head of Vietnamese Trade Office in Belgium Nguyen Canh Cuong said that the office had worked with local partners such as Foreign Trade Association to provide information to Belgium businesses and consumers.

    Also at the event, Viet Nam held other trade promotion activities, including a dialogue for shrimp value chains and a programme for visitors to try Vietnamese seafood.

    Seafood Expo Global, the largest of its kind globally, drew the participation of over 1,600 exhibitors from 77 countries and territories this year.

    It is expected to attract more than 26,000 visitors and exporting and trading enterprises from 144 nations and territories.

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  • Japan tightens inspections on shrimp shipments from Vietnam

    Japan tightens inspections on shrimp shipments from Vietnam

    The island nation now screens every last shrimp export for a banned antibiotic. Japan now screens every shipment of Vietnamese shrimp for a banned antibiotic, according to NAFIQAD Vietnam’s seafood quality control.

    Vietnam does not consider the substance fit for use as a direct food additive in foods for human consumption, according to the Vietnam Association of Seafood Exporters and Producers (VASEP) which reported that Japan raised its shrimp sampling from 30 to 100 percent of imports on December 12.

    Local shrimp exporters have been warned to keep antibiotic sulfadiazine residues below 0.01 parts per million, said Le Hong Phong, deputy head of NAFIQAD.

    By September, the E.U. had rejected 2.2 times more shrimp than the entire preceeding year, according to NAFIQAD, which called for special scrutiny of seafood coming out of the four central provinces affected by Taiwan Formosa Plastics Group’s discharge of toxic waste in April.

    The following month, the European Union reported having rejected 11 shipments of shrimp in the past nine months due to high levels of heavy metals. The European Commission Rapid Alert System for Food and Feed found the shipments contaminated with mercury and cadmium.

    Vietnamese trade commissions in the EU, Japan, and the United States have received roughly 180 warnings about seafood contaminated with dangerous levels of antibiotic and chemical residues so far this year.

    Australia, which remained Vietnam’s largest shrimp importer for the past five years, now requires every seafood shipment from Vietnam to be scrutinized for biological toxins and bacteria.

    During the first eleven months of the year, Vietnam’s seafood exports had edged up 6.9 percent from 2015 to nearly $6.4 billion, customs statistics showed.

    At the start of the year, Vietnam announced plans to export $8 billion worth of seafood this year after reporting $6.6 billion in seafood exports in 2015.

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