July 14, 2016

 

Vietnamese shrimp exports up 5.9% in first 5 months

 

 

Vietnamese shrimp exports during the first five months hit US$1.1 billion, up 5.9% year on year, according to the Vietnam Association of Seafood Exporters and Producers (Vasep). For May alone, however, shrimp sales were down 0.4% year on year to $241.8 million.

 

The increase during the five-month period was attributed to higher demand from major markets, thanks to stable supply-demand and lower inventories.

 

Exports to China-Hong Kong showed the sharpest rise of 34.3%, followed by the US at 17.4%. China and South Korea also showed positive growths, Vasep said.

 

Exports to Japan, Australia, Canada, Asean, Taiwan and Switzerland, however, showed declines, with Taiwan seeing the highest fall at 31.6%. However, the overall decline from these countries was not enough to upset the positive growth in sales in the first five months as most of them are small markets for shrimp insofar as Vietnam is concerned.

 

During the reviewed period, whiteleg shrimp took the largest share of exports at 57.8%, followed by black tiger shrimp with 33.7% and marine shrimp with 8.5%. Compared with January-May 2015, the share of whiteleg shrimp and black tiger shrimp rose while that of marine shrimp declined.

 

Among shrimp products, exports of processed black tiger (HS 16) reported the highest growth of 32% while those of other canned shrimp (HS 16) reported the greatest slump at 54%.

 

US top exporter

 

Among the top markets of Vietnamese shrimp, the US remained in the lead position, accounting for 22.6% of the total Vietnamese shrimp exports. EU came in second with 18.9%, followed by Japan and China with 17% and 16.6%, respectively.

 

Data showed shrimp exports to the US in January-May were valued at $249.3 million, up 17.4% year on year. The shrimp price in the US market dropped, thanks to higher supply that boosts summer consumption. Softer shrimp price also encourages restaurant chains in the US to purchase and restore for yearend holidays.

 

The US mainly imports frozen peeled shrimp. In January-April 2016, imports of the item into the US reached 72,881 tonnes, valued at $669.7 million, up 13% in volume but down 2% in value. Among the US' top five shrimp suppliers during the first five months, shrimp imports from Vietnam increased 13% in volume and were equal in value on par with January-April 2015.

 

Shrimp imports from Ecuador decreased 22% in volume and 24% in value. Ecuador reduced shrimp exports to the US to boost exports to some Asian countries because of higher demand and lower duties. The US reduced its Ecuadorian shrimp imports and increased imports from Vietnam, India and Thailand because they could meet demand for skewered shrimp products at reasonable prices.

 

Vietnamese shrimp exports to the EU (the second-largest market for Vietnam shrimp) touched $208.4 million in January-May, up 8.2% year on year. Among single markets in the EU bloc, Germany led, followed by the UK and the Netherlands. Shrimp exports to these three markets rose 4.3%, 21.6% and 9.4%, respectively.

 

Shrimp exports to China reported the highest growth at 34.3% and revenue of $182.3 million. Due to fall in shrimp production and higher domestic consumption, China is boosting shrimp imports from Ecuador and some major producers in Asia.

 

According to Vasep, factors of supply and demand are favoring Vietnamese shrimp exports. It is expected that exports during the second quarter will reach $780 million, or an increase of 10% year on year, it said.