Shrimp exports in 2023 decreased by 21% compared to 2022

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam's shrimp exports in 2023 are expected to reach about 3.4 billion USD, 21% lower than in 2022.

2023, shrimp exports decreased by 21% compared to 2022

Regarding import markets, the United States is the largest single market, continuing to increase shrimp imports from Vietnam in November. In November 2023, shrimp exports to this market increased by 24% to 51 million USD, recording the fifth consecutive month of positive growth. In the first 11 months, shrimp exports to this market reached 640 million USD, down 17% compared to the same period last year.

For the EU market, the decline in exports to this market was milder due to increased demand at the end of the year, and inflation here has also cooled down somewhat. In November, shrimp exports to this market decreased by 3% to 36 million USD.

Exports to China and Hong Kong (China) continued to decline in November. Demand in this market was unstable, growing positively in the three months from June to August, then returning to a downward trend in September, October and November. However, the decline was not as sharp as in the first months of the year. China and Hong Kong (China) were the markets with the lowest decline among the major import markets.

The demand for Vietnamese shrimp imports in the Chinese and Hong Kong (China) markets not only depends on economic growth and inventory in these countries, but also depends heavily on cheap supply from Ecuador.

China's demand for shrimp imports is still increasing strongly, but because there are too many sources of supply "flocking" to this market with low prices, Vietnamese shrimp is finding it difficult to compete on price. In the last month of this year, Vietnamese shrimp exports to this market still decreased compared to the same period last year. In the first months of 2024, there may be a slight recovery.

Economists believe that China will increasingly rely on imported seafood, following the model of Western countries. China's shrimp consumption is large, even more than the United States and Europe. In 2023, it is estimated that the country will import a huge amount of shrimp, up to 1 million tons, mainly for processing and domestic consumption, with almost negligible exports.

China is the target market of many shrimp exporting countries such as Ecuador and India with cheap raw shrimp supply, so Vietnamese shrimp is under pressure to compete on price. In addition, businesses also have to face competition from shrimp processors in the domestic Chinese market.

To take advantage of opportunities from China, VASEP recommends that B2B trade activities should be further strengthened, with more attention paid to local trade. In addition, there should be exchanges and sharing of information on market demand and regulations, especially when there are changes in import-export policies.

According to the Center for Digital Transformation and Agricultural Statistics (Ministry of Agriculture and Rural Development), in the first 11 months of 2023, shrimp farming output reached 1,100,400 tons, up 5.9%, of which black tiger shrimp reached 252,600 tons, up 1.5%; white-leg shrimp reached 779,700 tons, up 7.3%. Raw shrimp prices in the Mekong Delta provinces tended to increase in November 2023, especially for large-sized shrimp, but supply was not much because during the period of falling shrimp prices, farmers stocked less.

Mr. Duong Long Tri - Deputy General Secretary of the Vietnam Fisheries Association - said that, up to now, the output of farmed shrimp is about 1.1 million tons, the export value is still only fluctuating from 3.5 - 4 billion USD, previously there were 700,000 tons with the same value. Therefore, it is necessary to consider preliminary processing and processing solutions to increase product value in order to increase export turnover.

Regarding this, the Vietnam Association of Seafood Exporters and Producers said that Vietnam is currently aiming to become one of the leading countries in deep processing and creating seafood products with high added value.

Promoting the production of value-added shrimp products continues to be the direction of authorities and the priority of businesses in the coming time to help the shrimp industry increase its competitiveness and develop sustainably.

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