Vietnam accelerates shrimp exports to the United States

According to statistics, among the main shrimp exporting countries to the US market in 2024, only Vietnam recorded positive growth.

Vietnam's breaded shrimp exports to the US increase sharply

On February 20, 2024, the Vietnam Association of Seafood Exporters and Producers said that according to statistics, for the shell-on shrimp segment imported into the US market, the decrease was mainly from Ecuador. Ecuador's supply in this segment decreased by 17% compared to 2023.

Meanwhile, India’s shell-on shrimp supply also decreased (13% compared to 2023), Indonesia’s supply remained unchanged, and Vietnam’s supply increased slightly (5% compared to 2023). Ecuador continued to dominate this product segment with a market share of 48%.

In the peeled shrimp segment, the situation was slightly different. Supplies from Ecuador and India increased slightly (2% each), Indonesia decreased by 15%, and Vietnam increased by 21%. India continued to dominate this product segment with a market share of 57%.

US shrimp import data from 2019-2024 - (Photo: VASEP).

India also maintained its leading position in the cooked and marinated shrimp segment with a market share of 40%. Supply from Indonesia in this segment decreased by 16%, while supply from Vietnam was stable.

Accordingly, Vietnam is gradually approaching Indonesia's second position in this segment and if this growth trend continues, Vietnam may surpass Indonesia by 2025. Ecuador's market share is still small (4%), but its supply has grown by 20% annually.

While Indonesia will remain the largest supplier of breaded shrimp to the United States in 2024 with a 42% market share, Vietnam is also competing with Indonesia in this segment. Vietnam’s breaded shrimp exports increased by 33%, while Indonesia’s supply increased by only 5%.

With a current market share of 28%, Vietnam and Indonesia account for 70% of the market. Supply from India has doubled but still accounts for only 4% of the market. Supply from Ecuador is down 20% from 2023 and currently accounts for 7%.

Opportunities for Vietnamese businesses to grow

With a good growth trend in 2024, steamed, seasoned and breaded shrimp are not subject to tax, Vietnamese businesses can consider boosting exports of this product to the United States.

In 2024, India faced some production issues due to outbreaks of bacterial diseases such as IHHNV and WSSV. Ecuador also faced other market challenges such as power issues and El Niño conditions. Both India and Ecuador faced trade issues and logistical delays that further complicated trade flows.

Vietnam's shrimp exports will reduce competitive pressure in the US market by 2025.

This reduces competitive pressure on Vietnamese shrimp in the US market. Among the top shrimp suppliers to the US in 2024, only Vietnam recorded positive growth. Other suppliers such as Indonesia and Thailand also sharply reduced shrimp exports to the US market in 2024.

The Vietnam Association of Seafood Exporters and Producers believes that the re-election of Donald Trump as President of the United States and the introduction of a series of new tax regulations could create both opportunities and challenges for Vietnam's shrimp exports in the coming time.

With the plan to increase tariffs on imported goods from China, the United States may reduce imports of products from this country and seek alternative sources of supply, including Vietnam. In addition, China, with reduced imports from the United States, may switch to importing products from Vietnam instead.

“In terms of challenges, Vietnamese enterprises also face US trade defense measures, which may include anti-dumping duties, anti-subsidy duties and strict requirements on product quality, forcing Vietnamese enterprises to comply with stricter standards on food hygiene and safety, leading to increased production and inspection costs,” the Vietnam Association of Seafood Exporters and Producers emphasized.

In 2024, the United States will import 762,804 tons of shrimp, down 3% from 2023 and down 15% from the peak in 2021. However, this figure is still 9% higher than in 2019.

Source: https://congthuong.vn/viet-nam-tang-toc-xuat-khau-tom-vao-hoa-ky-374760.html