August 31, 2022

Vietnam shrimp exports to US and China down in July

The Vietnam Association of Seafood Producers and Exporters (VASEP) said Vietnam's shrimp exports fell 14% from the same period last year to over US$381 million in July 2022, continuing a downward trend that began in June, Fish Information & Services reported.

Exports to the US and China, two of Vietnam's major seafood export markets, fell by 54% and 17%, respectively, in July. Exports to the remaining markets, including Japan, the EU, and South Korea, continue to grow favourably.

Shrimp exports experienced double-digit growth in the first five months of this year, a slight decline in June, and a further decline in July. Shrimp exports totaled US$2.65 billion after seven months, a 22% increase from the same time last year.

Shrimp exports from Vietnam to the US market began to decline in May, fell 36% in June, and then fell another 54% in July. Shrimp exports to the US totaled US$550 million in the first seven months of this year, a 6% decrease from the same period last year.

Following six months of strong growth, Vietnam's shrimp exports to China fell 17% in July to US$38 million. Shrimp exports to this market totaled US$371 million in the first seven months of this year, an increase of 64% from the same period in 2021.

Although COVID-19 regulations at seaports have been relaxed and China's economy has reopened, import regulations are still very strict, which presents many challenges for businesses. Vietnamese suppliers of shrimp face stiff competition from Ecuadorian suppliers on the Chinese market. Ecuador has a plan to increase exports to China in order to make up for the drop in exports to the US.

Because of the support provided by the EVFTA Agreement, shrimp exports from Vietnam to the EU market increased by 16% in July compared to the same month last year. In July, exports to Japan and Korea continued to grow fairly steadily, by 5% and 22%, respectively. Inflation is not an issue in Japan and South Korea, and train fares there are less expensive than in Western nations. These are thought to be contributing factors to the steady growth momentum of shrimp exports to these markets.

-      Fish Information & Services