Declining shrimp prices in Vietnam, diseases, tariffs unsettle local farmers

 

 

The chairman of the My Thanh Shrimp Association in Soc Trang Province, Vietnam, said that domestic shrimp prices have dropped significantly in recent days.

 

Depending on the shrimp type, size, and quality, shrimp prices for selling have decreased by 15-20%, according to chairman Vo Quan Huy .

 

Lower declines are expected in the coming days.

 

Amid significant declines in shrimp prices and the threat of shrimp diseases, farmers are facing a high risk of losses.

 

Vietnamese shrimp exporters to the United States said that they are currently reluctant to offer prices or sign sales contracts with US buyers, who have asked Vietnamese seafood processors to temporarily halt shipments.

 

In light of US President Donald Trump's trade tariffs being imposed on almost every countries, businesses are closely monitoring the ongoing tax negotiations between Vietnam and the US to determine their next steps.

 

Seafood remains a key economic pillar for Mekong Delta coastal provinces and cities.

 

As for Ca Mau Province alone, shrimp is the primary seafood product exported to the US, with an export turnover of more than US$76 million in 2024, accounting for 6%of the province's total exports.

 

In the first quarter of 2025, Ca Mau Province's seafood export turnover is estimated at US$236 million, an increase of 9% compared to the same period last year. Of this, exports to the US are estimated at US$12.8 million, making up 5.4 percent of the total.

 

Given the current situation, the chairman of the Provincial People's Committee of Ca Mau, Pham Thanh Ngai, has instructed relevant agencies and local authorities to carry out communication efforts targeting local residents, seafood farmers, processors, and exporters regarding the limited impact of the newly imposed US countervailing tariffs on the market. The move aims to help these parties be confident about sustaining planned production, farming and processing activities.

 

They are also advised to avoid simultaneous mass harvesting, which could overwhelm processing plants and lead to localised overcapacity, causing instability in the raw shrimp purchasing market within the province.

 

Ngai also called on seafood processing and exporting businesses to proactively coordinate with relevant departments to develop solutions for addressing difficulties and obstacles related to current and upcoming export shipments.

 

Additionally, businesses have been urged to strengthen trade promotion efforts, diversify export destinations by shifting part of their shipments to other potential markets, and effectively exploit the domestic market. These efforts will aim to ensure market diversification, as well as expand partners and customers both domestically and internationally.

 

The director of the Department of Industry and Trade of Bac Lieu Province, Tran Thanh Men, expressed commitment to stand by local businesses and actively coordinate with relevant agencies to resolve challenges, especially those related to handling export goods. He emphasised that the department is promoting access to alternative markets, ensuring no disruption in the shrimp supply chain.

 

A representative of the Department of Agriculture and Environment of Ca Mau reported that following the directives issued by the Provincial People's Committee Chairman, local shrimp farmers have stopped massive harvesting and shrimp prices have slightly increased, as of April 8.

 

However, raw shrimp prices remain low at ₫10,000 (US$0.38) per kilogramme, lower than the previous prices in the period before the US announced a 46% countervailing tariff on Vietnam .

- SGGP