Oct 2016: Rebound in Vietnam’s shrimp exports to Japan

(seafood.vasep.com.vn) In Oct 2016, Vietnam’s shrimp exports gained over US$337 million, up 6% from Sep 2016 and 3% over the same period of 2016. The figure in Jan-Oct 2016 valued at US$2.58 billion, up 5.2% year on year. Total shrimp export value continued to increase thanks to high demand in markets, in which, exports to three major importing markets (US, EU, China) recorded the good growth.

In the month, thanks to favorable weather and stable raw shrimp prices, many farmers of brackish water shrimp made a good profit on high yield. In Jan-Oct 2016, the area for brackish water shrimp farming touched 678 thousand hectares, up 2.3% from a year before; in which, the area for black tiger shrimp farming was 596 thousand ha, and that for whiteleg shrimp was 82 thousand ha. The production totaled 433 thousand MT, up 1.7% over the same period in 2015, in particular, black tiger shrimp output hit 203 thousand MT, white shrimp with 230 thousand MT. Of that, in Mekong Delta provinces, the area for black tiger shrimp farming estimated at 565,611 ha (+1.7%) with the yield of 195,114 MT (-4.4%). That for whiteleg shrimp was 65,297 ha (+11.8%) with the volume of 193,397 MT (+14.1%).

As of Oct 2016, out of total Vietnam’s shrimp exports, the proportion of whiteleg shrimp exports increased by 3%, while that of black tiger shrimp and marine shrimp decreased by 3% and 0.3%, respectively. Exports of live/fresh/frozen whiteleg shrimp (HS code 03) represented the highest export value with over US$851 million.

During this period, the export value of Vietnam’s whiteleg shrimp increased by 11% while that of black tiger shrimp decreased by 5% year on year. In total shrimp exports, sales of processed whiteleg shrimp (HS code 16) witnessed the highest increase of 13%, while that of marine shrimp reported the biggest drop of  65% ​​(this item took up a small share).

In the first 10 months of this year, exports to top 5 major markets registered the positive growth except for Japan (-2.6%). Exports to China showed the highest increase of 24.7%; those to the US, EU, South Korea went up 12.6%; 6.7% and 12.4%, respectively. Exports to other markets declined by 0.2- 24.5%.

Although exports to the large markets (the US and China) recorded the positive growth in Jan-Oct 2016 but the figure in Oct 2016 decreased by 1.1% and 9.4% respectively year on year. A decline in shrimp exports to the US in Oct 2106 may be due to high anti-dumping duty of POR10, while a fall in shipments to China was due to China's economic instability and devaluation of the yuan.

Despite a 2.6 percent fall in exports to Japan in Jan-Oct 2016, exports to this market in Oct 2016 recovered remarkably with the growth of 8.7%. Japan ranked the 3rd out of top Vietnam's shrimp importers, behind the US and EU, accounting for 18.3% of total shrimp exports.

Out of Vietnam's shrimp exports to Japan, sales of whiteleg shrimp made up the highest proportion of 54%, those of black tiger shrimp were 30%; and those of marine shrimp were 16%. Out of whiteleg shrimp exports to Japan, shipments of live/fresh/frozen item (HS code 03) were 1.1 times higher than those of processed item (HS code 16). Meanwhile, exports of live/fresh/frozen black tiger shrimp (HS code 03) to Japan were nearly 6 times higher than those of processed item (HS code 16). Vietnam's shrimp exports to Japan this year projected to increase slightly by 3% to reach about US$601 million.

The US remained to be the largest buyer of Vietnam’s shrimp, making up 23.4% of total exports. Also during this time, the US was the leading importer of Vietnam’s whiteleg shrimp. According to General Department of Vietnam Customs, exports of processed whiteleg shrimp (HS code 16) were almost 2 times higher than those of fresh/live/frozen whiteleg shrimp (HS code 03). According to the ITC, Vietnam currently claimed as the 4th largest supplier of shrimp to the US. While the US’ import value of shrimp from some large suppliers such as Indonesia, India, Thailand, and Ecuador fell in Jan-Jun 2016, that from Vietnam increased slightly over the same period last year.

China expected to be a potential importing market of Vietnam in 2017. As of Oct 2016, Vietnam’s shrimp exports to this market leaped up 24.7% over the same period in 2015.

China was the largest buyer of Vietnam’s black tiger shrimp, accounting for about 58% of Vietnam's shrimp exports to this market; shipments of whiteleg and marine shrimp picked up 39% and 3%, respectively. China mainly imported live/fresh/frozen black tiger shrimp from Vietnam, 63 times higher than those of processed item.

Import demand for shrimp into China is growing strongly, while its shrimp production predicted to decline from 1.5 million MT (in 2015) to 1.2-1.3 million MT (in 2016 ) due to diseases.

Vietnam shrimp exports in 2016 expected to total US$3.1 billion; up 3.3% compared to 2015.

Written by Kim Thu

Compiled by Dieu Thuy


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  • SPECIALIST ON SHRIMP MARKET

Ms Kim Thu

Email: kimthu@vasep.com.vn

Tel: 84.24.3771.5055 (ext 203)

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