March 25, 2024

 

Vietnamese seafood association sees Australia as good market for shrimp

 

 

Australia is considered a good potential market for Vietnamese shrimp as the market's demand for processed shrimp is increasing, according to the Vietnam Association of Seafood Exporters and Producers (Vasep).

 

Focusing on developing their strengths, Vietnamese businesses will succeed in major export markets, including Australia, according to Vasep.

 

Le Van Quang, general director of Minh Phu Seafood Group Joint Stock Co, said shrimp processing and exporting enterprises should invest in more advanced technology to create more processed and affordable products.

 

Ho Quoc Luc, chairman of Sao Ta Food Joint Stock Co, said that thanks to investment in modern technology, Vietnamese shrimp still accounted for the largest share in the global market, despite strong competitive pressure from cheap shrimp from Ecuador, India and Indonesia.

 

According to Vasep, as of February 15, Vietnamese shrimp exports to Australia reached more than US$23 million, an increase of 48% over the same period in 2023.

 

Australia is the fifth largest market for Vietnam's export shrimp, accounting for 7.5% of the total value of shrimp exports.

 

In 2023, Vietnamese shrimp exports to Australia reached US$233 million, down 14% compared to the previous year.

 

However, the rate of decline was still lower than in other main markets, such as Japan, the European Union, South Korea and Canada.

 

Vietnam's drop in shrimp export last year followed a downtrend for seafood exports on the global market due to high inflation rates, causing demand to decline.

 

Australia is the thirteenth largest economy in the world with an import turnover of nearly US$250 billion each year. Australia now is Vietnam's seventh largest trading partner, while Vietnam is Australia's tenth largest trading partner.

 

Both Vietnam and Australia are members of at least three free trade agreements (FTAs), including the Asean-Australia-New Zealand FTA, Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership.

 

However, Australia is still a demanding market with a system of strict standards for imported goods.

 

In addition, the distance between Vietnam and Australia leads to high logistics costs and long shipping times, which are challenges for Vietnamese seafood businesses when exporting to the lucrative market.

 

Enterprises must be proactive in exploiting and developing markets, and have long-term business plans to promote exporting goods to Australia.

 

On the occasion of a Special Summit commemorating the 50th anniversary of Asean-Australia relations and Vietnamese Prime Minister Pham Minh Chinh's visit to Australia in early March, Vietnam and Australia upgraded ties to a Comprehensive Strategic Partnership. This means the two countries will promote market access measures and facilitate trade activities in the fields of agriculture and fisheries.

— Viet Nam News / ANN