March 6, 2024

 

Vietnam's seafood association expects country's shrimp exports to rise up to 15% this year

 

 

Vietnam will see a rise of about 10-15% in shrimp exports in 2024 as shrimp consumption in some markets recover, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

 

Additionally, as demand for protein from aquatic products increases, there are more opportunities for seafood production to grow further, especially for the shrimp segment.

 

Vietnam targets its shrimp export turnover to hit US$4 -4.3 billion this year. The two largest markets for Vietnamese shrimp exports remains to be the United States and China, accounting for about 40-45% of the shrimp industry's export value.

 

Sao Ta Foods is now the biggest Vietnamese enterprise exporting shrimp to Japan, while ranking fifth for the US market and ninth for South Korea, according to VASEP.

 

Meanwhile, businesses may have to shift their focus to other export markets and export products. China, for instance, could attract more opportunities for shrimp imports from Vietnam due to its close geographical location and low transportation costs.

 

The growth of small markets is also a driving force for the rise of Vietnam's shrimp exports this year.

 

The recovery of Vietnam's shrimp supply from the second half of 2024 will not create significant pressure on raw shrimp prices for shrimp processing enterprises, according to analysts at FPT Securities (FPTS). It is forecast that the average price of raw shrimp in 2024 will increase by 5% compared to 2023.

 

Meanwhile, based on the market outlook, FPTS forecast that the average export price of Vietnamese shrimp to the United States, the European Union and Japan this year will reach US$11.4 per kilo, an increase of 7% compared to 2023.

 

For the US, Vietnam's largest shrimp consumption market accounting for nearly 20% of its total export value, FPTS forecast that demand will begin to recover from the first quarter of this year due to frozen shrimp inventories falling significantly from the fourth quarter of 2023.

 

For the EU and Japanese markets, FPTS believes that demand will recover one quarter after the US market, due to greater inventory in the EU market and the low likelihood of improved Japanese yen/US dollar exchange rate this year.

— VNS