A 34.3% rise in Vietnam shrimp exports to China

The increase in Vietnam’s shrimp sales were attributable to higher demand from major markets thanks to stable supply-demand and lower inventories.

Among top 10 leading importers of Vietnam shrimp; shrimp exports to the US, EU, China, South Korea reported the positive growth in which exports to China & Hong Kong showed the sharpest rise of 34.3%; followed by the US with 17.4%. Exports to Japan, Australia, Canada, ASEAN, Taiwan and Switzerland downed in which Taiwan saw the deepest fall of 31.6%. However, the decline wasn’t affected to the positive growth in sales of the first 5 months of this year because these are small markets.

Whiteleg shrimp took the largest proportion of 57.8%, followed by black tiger shrimp with 33.7% and the next was marine shrimp with 8.5%. Compared to Jan-May 2015, the proportion of whiteleg shrimp and black tiger shrimp rose while that of marine shrimp downed. Among total shrimp products for exports, exports of processed black tiger (HS 16) reported the highest growth of 32% while exports of other canned shrimp (HS 16) reported the deepest dive of 54%.

Among top markets of Vietnam shrimp, the US remained the top position with the proportion of 22.6% out of total shrimp exports by Vietnam. EU ranked the 2^nd with 18.9%; followed by Japan and China with the respective proportion of 17% and 16.6%.

Shrimp exports to the US in Jan-May 2016 reached US$249.3 million, up 17.4% year on year. The shrimp price in the US market downed thanks to higher supply that boosts summer consumption. Softer shrimp price also encourages restaurant chain in the US to purchase and restore for year-end holidays.

The US mainly imports frozen peeled shrimp. In Jan-Apr 2016, imports of the item into the US reached 72,881 MT, valued at US$669.7 million, up 13% in volume but down 2% in value. Among top 5 leading suppliers to the US in Jan-Apr 2016, shrimp imports from Vietnam up 13% in volume and equal in value on par with Jan-Apr 2015. Shrimp imports from Ecuador reduced 22% in volume and 24% in value. Ecuador reduced shrimp exports to the US to boosted exports to some Asian countries thanks to higher demand and lower duties. While the US reduced importing Ecuadorian shrimp and raised importing shrimp from Vietnam, India, Thailand because these suppliers can meet demand of the US for skewered shrimp products with reasonable price.

Vietnam shrimp exports to EU (the 2^nd largest market of Vietnam shrimp) touched US$208.4 million in Jan-May 2016, up 8.2% year on year. Among single markets in the EU bloc, Germany was the leading one, followed by the UK and the Netherlands. Shrimp exports to these 3 markets rose 4.3%; 21.6% and 9.4%, respectively in which the UK reported the best growth.

Shrimp exports to China reported the most tremendous growth of 34.3% with the revenue of US$182.3 million. Due to fall in shrimp production and higher domestic consumption, China is boosting shrimp imports from Ecuador and some major producers in Asia.

Factors of supply and demand are favoring for Vietnam shrimp exports. It is expected that Vietnam shrimp exports in QII/2016 will reached US$780 million, up 10% year on year.

By Kim Thu