Name the 3 markets that buy the most seafood from Vietnam in the first quarter of 2024

Seafood exports to the US make a strong breakthrough

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), in March 2024, seafood exports are estimated to reach over 770 million USD, a slight increase of 1% over the same period in 2023. Overall, by the end of the first quarter of 2024, seafood exports are estimated to reach nearly 2 billion USD, 8% higher than the same period last year.

The US, Japan, China and Hong Kong (China) are the top 3 largest import markets for Vietnamese seafood in the first quarter of 2024. Of which, exports to the US market have grown significantly, with a growth rate of 16% reaching 330 million USD; exports to Japan are equivalent to the same period; while exports to China and Hong Kong (China) increased by 15%.

Shrimp exports to the US in the first quarter of 2024 increased by 15%, while tuna, pangasius and crab exports to this market all increased sharply from 13 - 53%. The average price of pangasius exported to the US is recovering from the low level that hit rock bottom at the end of the year, reaching USD 2.66/kg by the end of February. Whiteleg shrimp prices also recovered slightly compared to the end of 2023, but remain low compared to the average price over the past 5 years.

Exports to the Chinese market in March decreased by 11% compared to the same period last year, mainly due to a decrease in pangasius and other marine fish, while shrimp exports to this market still increased by over 30%.

Pangasius, whiteleg shrimp, lobster, anchovy and crab are the five most exported Vietnamese seafood species to China. In particular, lobster and crab exports to this market have made a strong breakthrough in the first quarter of 2024, with lobster increasing 11 times and crab increasing 7 times compared to the first quarter of 2023. This country is tightening inspections of shrimp imported from Ecuador, causing the supply from this country to decrease, creating room for Vietnamese whiteleg shrimp. In the first quarter, whiteleg shrimp exports to China increased 2.5 times compared to the same period.

Not only China and the US increased demand for shrimp and crab from Vietnam, but exports of these two species to Japan also showed positive signs. Of which, white-leg shrimp exports to Japan increased by 20%, crab exports increased by 23%.

In addition, Vietnamese pangasius is increasingly popular in Japan, with exports to this market increasing by 25% in the first quarter of this year. Japan is also targeting the Vietnamese market to process seafood products such as salmon, mackerel, and saba fish.

Recently, Japan has been actively seeking partners to process scallops for this market, after China - Japan's important scallop processing partner - banned the import of scallops from Japan.

The EU and Korean markets have yet to show clear signs of recovery for Vietnamese shrimp and pangasius, but tuna exports to these markets all grew positively: to the EU increased by 27%, to Korea increased by 15%... In general, tuna exports to key markets were quite positive: to the US - the largest market - increased by 30%, to Japan increased by 9%... Squid and octopus exports to Korea still increased by 16%, while to other key markets such as the US decreased by 3%, to Japan decreased by 21%...

Still worried about sluggish competitiveness in the face of barriers

Mr. Tran Dinh Luan - Director of the Department of Fisheries (Ministry of Agriculture and Rural Development) - said that the fisheries sector has proactively taken the lead in international integration, promoting the application of advanced science and technology in production, linking raw material production with processing, promoting trade, and expanding export markets.

Aquaculture output in 2023 will reach more than 9.3 million tons, 7.1 times higher than in 1995; aquaculture output will reach 5.5 million tons, more than 5 times higher than in 1995. The structure of aquaculture output will have a positive shift, with the proportion of aquaculture output increasing from 31% in 1995 to nearly 57% in 2023.

With the dynamism and creativity of farmers and businesses, Vietnamese seafood products have been exported to more than 170 markets and reached nearly 11 billion USD (in 2022). From there, Vietnam ranked 3rd among the largest seafood exporting countries in the world (China, Norway, Vietnam).

According to VASEP, the US Department of Commerce (DOC) recently announced the final results of the 19th anti-dumping tax review (POR19) on frozen pangasius fillets exported from Vietnam to the US for the period from August 1, 2021 to July 31, 2022. The final tax rate for POR 19 was set at 0.18 USD/kg for 5 companies. This result is significantly lower than previous PORs.

Also in March, the US DOC announced preliminary anti-subsidy taxes on shrimp from Vietnam, India and Ecuador, according to which Vietnam's general tax rate is significantly lower than the other two countries.

From the DOC’s new move on the shrimp anti-subsidy lawsuit, experts believe that Vietnamese shrimp will face new difficulties. Because the US has always been an important market for the shrimp industry in particular and the Vietnamese seafood industry in general. The preliminary tax ruling from the DOC will also have some impact on Vietnam’s shrimp exports to the US market.

According to Mr. Ho Quoc Luc - Chairman of the Board of Directors of Sao Ta Food Joint Stock Company (FMC), looking at the current situation of enterprises in the seafood industry, we can see that input costs are showing signs of increasing. Prices of raw shrimp and raw pangasius are starting to recover as export activities are bustling again. Transportation costs are increasing due to prolonged tensions in the Red Sea.

According to Mr. Ho Quoc Luc, Ecuador's anti-dumping tax on shrimp to the US is higher than Vietnam's, but they still maintain the market. This is a lesson for us, selling at a low price does not necessarily mean dumping, selling at a higher price does not necessarily mean not dumping, no one should be subjective and in a context full of risks, Vietnamese shrimp businesses should pay attention to better managing their books.

In the first quarter of 2024, the average export price of seafood products will generally increase compared to the end of 2023, but will still be low. VASEP expects that after the International Seafood Fairs in the US, EU, and Japan, orders for businesses will improve and export prices will gradually improve.

"There may be new opportunities for Vietnamese seafood when Ecuadorian and Indian shrimp are being warned about antibiotics and labor issues. However, the problems that the Indian shrimp industry is facing such as labor, environment, and antibiotics are also lessons for Vietnamese businesses to be cautious and strictly comply with the regulations of the import market, as well as domestic regulations to avoid barriers and protectionist moves of the market," VASEP representative recommended.

Source