Seafood exports rebound

In August 2023, seafood exports to many markets reached their peak since the beginning of the year.

According to statistics from the Vietnam Association of Seafood Exporters and Producers (VASEP), seafood exports in August were estimated at 846 million USD, down more than 15% compared to the same period last year. Although down, this is the lowest negative growth rate in the past 6 months. Notably, major export markets such as the US, South Korea, Japan, China, etc. all recorded high growth compared to the previous month.

In addition to the two main products of shrimp and pangasius, August also recorded a breakthrough in many aquatic products, focusing mainly on seafood species such as cod, pollock, crab, lobster, herring, mackerel, fish sauce, etc. Products such as processed tuna, canned sea fish, shrimp, crab, processed pangasius, dried shrimp, etc. are in increased import demand compared to last year.

Typically, in the US market, after 11 consecutive months of decline, last August, seafood exports to this market increased by 4% over the same period. Except for pangasius, all other items increased from 11-56% over the same period last year. In the first 8 months of the year, seafood exports to the US reached the 1 billion USD mark. It is forecasted that in 2023, this market will contribute 1.7 billion USD in export revenue for Vietnamese seafood, 23% less than in 2022.

Seafood exports receive positive signals from the market

Forecasting the seafood export situation from now until the end of the year, Ms. To Thi Tuong Lan - Deputy Secretary General of VASEP - commented that seafood export will continue to face many difficulties and may last until the first months of 2024, due to the general impact of inflation, global economic recession; consumers are more cautious in spending on high-priced products, including seafood; high input costs, reduced consumer demand...

With optimistic conditions in some markets showing signs of recovery, seafood exports in 2023 are expected to reach over 9 billion USD, down 15-18% compared to 2022. “In the past, shrimp exporting enterprises have been very flexible in approaching and closely following the market. For pangasius, the export price is currently very low, so the linkage must be tightened further to get the best selling price at the end of the year. In addition, aquaculture households also need to cooperate with businesses to grasp market information, organize reasonable production to ensure supply,” said Ms. To Thi Tuong Lan.

Meanwhile, Mr. Ong Hang Van - Deputy General Director of Truong Giang Seafood Company said that currently, the pangasius industry is still facing many difficulties due to large inventory. "Although there are no official statistics, the large inventory makes the cash flow of businesses seem to be blocked" , Mr. Van said.

According to Mr. Van, the pangasius industry is cyclical because pangasius is easy to raise and has a short growth and harvest time. Therefore, when export prices are high, farmers release new fish en masse. On the contrary, when prices fall, farmers delay their release. In 2018, pangasius export prices peaked, then plummeted in 2019. The stagnation lasted for the next two years due to the impact of the Covid-19 pandemic. By early 2022, when prices increased again, the pangasius industry expected to enter a new growth cycle. This caused importers to rush to import goods with the expectation of increased sales in the second half of the year. However, the world economy was not as bright as predicted, and that inventory continued into the first half of 2023.

“The cycle of increasing inventory and decreasing prices in the pangasius industry is similar to other cyclical industries. It is impossible to eliminate it, but calculating to reduce the amplitude of price changes between the peak and trough of the cycle will help the industry become more stable, especially in an imperfect cycle with a short price increase period like the current one,” Mr. Van emphasized.

To open the way for pangasius exports in particular and the seafood industry in general, Mr. Van said that businesses need to reduce costs and improve product quality to increase competitiveness in the market. “ At this time, pangasius businesses should sit down to balance the crop for next year, possibly harvesting in the second quarter of 2024. Each business has its own way, but overall, they must reduce stocking density, avoid diseases, gain weight faster, and have a low feed conversion ratio. These things will help lower production costs,” said the leader of Truong Giang Seafood Company.

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