February 28, 2023

Vietnam exported US$141 million worth of shrimp in January 2023

Vietnam shipped US$141 million worth of shrimp in January this year, 55% lower compared to January 2022, due to the holiday season, a drop in market demand, and low stocks of raw shrimp since late last year, Fish Information & Services reported.

Vietnam's shrimp exports to all Vietnam's markets dropped by double digits. Japan accounted for 20.3% of Vietnam's shrimp imports in January 2023, importing US$29 million worth of shrimp. This was 47% decrease from December 2022. 

As Vietnam's processed shrimp products remain in high demand, shrimp exports to Japan are anticipated to remain stable in 2023. However, this market demands increasingly higher standards of food hygiene, safety and sustainability. The Japanese system for distributing goods is also complicated, with numerous levels and functions.

Shrimp exports to the EU, the second-largest market, totaled US$24 million, a 55% decrease from the month prior, due to the effects of inflation and the unpredictability surrounding the Russia-Ukraine conflict. 

In light of the increasingly fierce competition from other suppliers in the EU market, such as Ecuador and China, businesses must also diversify their markets, their supply chains, and their products, as well as concentrate on market research to increase exports of goods that are in demand.

Vietnamese shrimp exports to the US decreased by 65% over the same period, reaching US$23 million. Due to an abundance of shrimp, demand in the US market fell drastically. In the US market, shrimp prices are also declining. The National Oceanic and Atmospheric Administration (NOAA) reported that US shrimp imports fell to a 10-year low in December 2022.

US importers said processors and wholesalers in this market are likely to buy more peeled and deveined shrimp instead of headless shell-on because this item is easier to transport - Lighter weight to reduce shipping costs and shorten processing time. This will cut down on processing time and shipping costs. After the first quarter of 2023, the US market's demand for Vietnamese shrimp imports may increase, when inventories are reduced and the economic situation is more favourable.

-      Fish Information & Services