Vietnam processed shrimp exports to Australia increased by 40%

From 2018 to now, shrimp exports to Australia have continuously grown positively from 115 million USD in 2018 to 188 million USD in 2021. As of August 15, 2022, shrimp exports to this market reached 169 million USD, up 52% compared to the previous year. 

As of August 15, 2022, in the total structure of Vietnam's shrimp exports to Australia, processed shrimp (HS code 16) accounted for 40% while frozen raw shrimp (HS code 03) accounted for 60%. The export value of shrimp with HS code 16 reached US$68 million, up 41% while the export value of HS code 03 reached US$101 million, up 60% over the same period last year.

The proportion of Vietnam processed shrimp exports to Australia in the past 5 years has tended to decrease due to the country's strict regulations on biosecurity. Recently, Australia has eased its  inspection regulations for some processed shrimp products, which would create good conditions for Vietnam processed shrimp exports to this market from now to the end of 2022.  

According to information from the Vietnam Trade Office in Australia, on August 19, 2022, the Australian Department of Agriculture, Fisheries and Forestry announced the addition of breaded, battered, or crumbed (BBC) shrimp and highly processed (HP) on the list of items eligible for incentives under the Preferential Intervention Program (CBIS) - Preferential mechanism for plant goods imported into Australia to enjoy the preferential rates and less biosafety testings.

Accordingly, from August 22, 2022 BBC and HP shrimp from all approved countries will enjoy incentives in the CBIS Program. These products will be eligible for incentives based on a history of compliance with biosafety regulations and risk probabilities test rate of the  Australian Government.

Specifically, for BBC shrimp, instead of checking 100% of the shipments to verify the goods, from August 22, 2022, only a part of the shipments must be checked with the seal intact. For HP shrimp, instead of 25% of the shipments that must be inspected to verify the goods, from August 22, 2022 only a smaller part of the shipments must be inspected.

The main  Vietnam shrimp products currently exported to Australia include frozen boiled headless and tailless shell-on whiteleg shrimp; frozen fresh PD headless and tailless whiteleg shrimp, frozen fresh PDTO headless shrimp, frozen PD IQF whiteleg shrimp, etc.

Australia's shrimp imports in the first half of 2022 also recorded good growth with import value reaching more than 205 million USD, up 30% over the same period last year. Australia tends to reduce imports from Thailand and China - the main competitors of Vietnamese shrimp in this market. China's shrimp production faced difficulties, output decreased due to the zero covid policy causing  China's shrimp exports to Australia to decrease.

In the context of high inflation, the Australian economic indicators are still positive. Therefore, the Australian economy is forecast to be able to avoid a recession this year. Along with the support from the RCEP and the CPTPP that Vietnam and Australia have joined, Vietnam's shrimp exports to this market are expected to remain positive from now until the end of the year.

Compiled by Thuy Linh