June 17, 2020

 

Vietnam shrimp industry reports highgrowth thanks to COVID-19 containment

 


The country's shrimp industry reported increased growth in export and farming, thanks to the government's swift measures to contain the COVID-19 pandemic, SeafoodSource reported. 

 

Vietnam Association of Seafood Exporters and Producers (VASEP) data showed US$244.2 million worth of shrimp was exported in April this year, a 5.8% year-on-year increase. Between January to April 2020, Vietnam's shrimp exports was at US$ 872.8 million, a 2.9% increase compared to last year.

 

Japan is the largest purchaser of shrimp from Vietnam, accounting for US$48.6 million, a 19% year-on-year increase in April 2020 and US$180.5 million between January to April 2020, up 11% year-on-year.

 

Exports to the United States was up 14% year-on-year to US$43.2 million in April this year, with a 17% year-on-year increase to US$158.7 million in value. VASEP said the increased exports was thanks to lower supplies from India and Ecuador. Both latter countries are struggling to contain the COVID-19 pandemic.

 

Exports to China and Hong Kong was up as well, a 16.6% increase year-on-year at US$39.2 million in April.

 

VASEP said shrimp farming and processing activities have been disrupted in major shrimp producing nations because of COVID-19. Besides India and Ecuador, Indonesia and Thailand have also been severely affected.

 

But Vietnam has reported 50 straight days of no new COVID-19 cases, with only 300 confirmed cases and zero deaths as of June 5.

 

Vietnam-based shrimp aquaculture companies have all reported higher production and export numbers, such as Fimex (Sao Ta), Camimex Group and the biggest exporter in the country, Minh Phu Seafood.

 

Camimex Group, based in Ca Mau province reported US$6.53 million in exports in April 2020, a 186% year-on-year increase. 70% of its exports were channeled to the European Union, with the remainder to Japan, South Korea and Canada.

 

Ho Quoc Luc, Fimex Chairman said higher imports have increased material prices. Luc said 70-countperkg shrimp was valued at VND 105,000 (~US$USD 4.50; VND 1000 = US$0.043). This amounts to a profit of VND 35,000 (~US$1.50).

 

Luc added that prices will remain high as there aren't enough stockpiles among major markets such as the US, the EU and Japan. Due to global shrimp supply disruptions related to COVID-19, Luc projects the world shrimp supply to drop 20% this year, compared to 2019.

 

Vietnam's Ministry of Agriculture and Rural Development data showed as of April 30, the total shrimp farming area in the country is 481,534 hectares focused mainly in Mekong Delta. 25,250 hectares have reported diseases.

 

-      SeafoodSource