Up 30% in Vietnam shrimp sales to China

After the double-digit growth in the first half of 2016, the shrimp export growth to China in the second half of 2016 tended to slow down. In Jan-Mar 2017, Vietnam’s shrimp sales to China decreased by 3.9% to eye US$93.3 million. However, exports in QII/2017 climbed up 57.6% to reach US$189.6 million. Thanks to the high growth in Apr-Jun 2017, the figure in the first half of 2017 estimated at US$282.9 million; up 30% year on year.

In 2016, shrimp imports into China reached US$777.3 million, up 3% from 2015. Of that, among the main shrimp suppliers to China, imports from Argentina showed the highest increase of 224.3%, followed by Vietnam with over 176.7%; imports from Ecuador and India witnessted the falls of 48% and 27.6%, respectively.

Imports of frozen warmwater shrimp (HS code 030617) account for the highest proportion of total shrimp imports into China, followed by frozen coldwater shrimp (HS code 030616).

Thanks to the tariff preferences in the ASEAN-China Free Trade Agreement (ACFTA); Vietnam enjoys tax incentives when exporting seafood to China.

China imports shrimp not only for domestic consumption but also for processing and re-exporting to other countries. With a large population, high demand for seafood, especially high quality products in recent years, Vietnam’s seafood exports especially shrimp exports to this market expected to go on the rise. The demand for raw shrimp for processing and re-exporting is increasing due to a drop in the domestic shrimp production and the policy of boosting imports for re-exports of this country.

Due to a dip in domestic shrimp production, in the coming time, shrimp imports into China expected to continue the upward trend. Vietnam’s shrimp exports to China in 2017 projected to go on the rise as this remains to be the major importing market of many large shrimp exporters of Vietnam in 2017.