July 3, 2023

Vietnam's shrimp exports decline by 34% in the first five months of 2023

Vietnam's shrimp export turnover has experienced a significant decline of 34% in the first five months of 2023 compared to the same period last year, reaching US$1.2 billion, with its export value declining 28% in May alone to US$331 million, Fish Information & Services reported.

During May 2023, major shrimp markets witnessed double-digit decreases in imports, with only smaller markets like the UK and Taiwan showing positive growth. China ranked first among importers of Vietnamese shrimp in May 2023, accounting for 23% of the total. The US followed closely in second place, accounting for 21%.

China and the US have shown a consistent increase in shrimp export turnover, surpassing the previous month's figures. Although shrimp exports to China in May still experienced negative growth, the decline was less severe compared to previous months (March saw a 40% decrease, April decreased by 22%, and May decreased by 20%).

The US market has followed a similar trend to China. According to the US Department of Commerce, Vietnamese shrimp imports into the US reached about 236,039 tonnes in the first four months of 2023, representing an 18% decline compared to the same period in 2022. But in April 2023, certain shrimp products from Vietnam recorded growth compared to March 2023, including a 211% increase in raw shrimp with shell, a 46% increase in peeled raw shrimp, and respective increases of 13% and 20% for steamed shrimp and powdered shrimp.

The global economic downturn and increased inflation, triggered by diseases and conflicts, have led to austerity measures, reduced spending, and a preference for cheaper food options. Consequently, the demand for shrimp has decreased while the global supply, particularly from Ecuador and India, has increased. These countries are offering shrimp at lower prices ranging from US$1-2 per kg, posing challenges for Vietnamese shrimp exporters. Moreover, the domestic price of raw shrimp has continuously decreased in recent months, causing significant repercussions for the entire shrimp industry.

In the current challenging context, the business community hopes that the State Bank will continue to prioritize and consider a stimulus package of US$420,000 for aquaculture in the Mekong Delta. Access to credit would assist shrimp exporters in purchasing raw materials for export from now until the first quarter of 2024.

To enhance the competitiveness of Vietnamese shrimp against rivals like Ecuador and India, smooth coordination among stakeholders within the industry chain is necessary. This includes the collaboration of companies producing high-quality shrimp seed and affordable feed, as well as suppliers offering farming products at reasonable prices.

-      Fish Information & Services