HANOI – Vietnam's shrimp export sector has demonstrated robust growth in the first month of 2025, reinforcing its vital role in the nation's seafood export market. Data released by the Vietnam Association of Seafood Exporters and Producers (VASEP) reveals a significant 13% year-on-year increase in shrimp export value for January 2025, reaching $273.3 million. This impressive figure represents 35.3% of Vietnam's total seafood export turnover for the month, highlighting the shrimp industry's substantial contribution.
Overall, Vietnam's seafood exports in January 2025 totaled $774.3 million, a modest 3.3% increase compared to January 2024. Looking ahead, the shrimp industry aims to achieve an export value of $4.3 billion in 2025, a $300 million rise from the previous year, according to Trần Đình Luân, Deputy Director General of the Directorate of Fisheries. Growth is anticipated in emerging markets such as Australia, the Middle East, the UK, and South Korea, alongside established markets.
Optimism within the sector stems from the projected recovery of major markets like the US, Japan, and the EU, where Vietnamese shrimp sales are expected to climb. Potential shifts in US tax policies affecting competitors like Ecuador and China could further create advantageous export opportunities for Vietnam.
Market analysis from Rabobank suggests a rebalancing of the global shrimp market, with leading producing nations slowing production growth. This anticipated tightening of supply and demand could stabilize shrimp prices in the first half of 2025, potentially benefiting Vietnamese exporters, particularly with improving demand from key markets like the US and EU.
However, challenges remain. China, a crucial market for Vietnamese shrimp, is experiencing a decline in domestic consumption due to evolving spending habits and competition from cheaper seafood alternatives. This softening demand presents a hurdle for Vietnamese exporters.
Domestically, a raw shrimp shortage is predicted to persist until the end of the first quarter of 2025, putting pressure on processing companies. Rising raw material prices pose a challenge to maintaining competitive pricing against cheaper shrimp imports.
To navigate these complexities, VASEP is advocating for increased government involvement in bilateral negotiations and targeted trade promotion in key foreign markets. These efforts aim to unlock new market access and enhance the competitiveness of Vietnamese shrimp.
Industry leaders like Hồ Quốc Lực, Chairman of Sao Ta Food JSC, emphasize the appeal of Vietnamese shrimp products, citing their attractive appearance and consistent quality. Vietnamese companies have strategically focused on high-demand products like large, whole tiger shrimp and boiled raw shrimp for the Chinese market, effectively addressing consumer preferences and minimizing competition. Furthermore, a shift towards value-added products like boiled, fried, or breaded shrimp for the US market demonstrates adaptability to evolving market demands.
Lê Hằng, Communications Director at VASEP, acknowledges the potential for market fluctuations in 2025, including shifts in consumer behavior, tariff policies, and supply-demand dynamics. While these factors could pose challenges, particularly in major markets like China and the US, growing demand from ASEAN countries and favorable tariff policies with key partners offer opportunities for continued growth.
The strong performance of Vietnam's shrimp industry in 2024, despite global headwinds, has set the stage for its promising start in 2025. Capitalizing on recovering demand in key markets, Vietnam saw a 39% surge in shrimp exports to mainland China and Hong Kong in 2024, reaching $843 million and surpassing the US as the largest export destination. Exports to the US also increased by 11%, reaching $756 million. Beyond these key markets, Vietnamese shrimp maintained a strong presence in Japan, South Korea, and the EU, while expanding into new markets like the UK, Canada, Australia, and Singapore, leveraging its reputation for quality and value-added products, as well as the advantages conferred by free trade agreements.
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