Asian markets drive Vietnam’s squid and octopus export recovery

After reaching USD 168.2 million in the first quarter, squid and octopus exports continued to expand in April and May. In May alone, export value totaled USD 70.7 million, up 20.9% year-on-year. This performance indicates that the recovery is no longer driven solely by early-year orders but is increasingly supported by more stable demand in several major consuming markets.

However, the 16.9% growth recorded over the first five months does not reflect a broad-based recovery. Export growth remains heavily dependent on Asian markets, while shipments to Western markets such as the U.S. and the EU continue to decline. This is an important consideration for exporters as the global cephalopod market becomes increasingly polarized: improving squid supplies from South America are intensifying price competition, while octopus remains under pressure due to limited wild catches.

Squid remains dominant, while octopus records faster growth

Squid continued to account for the largest share of exports, generating USD 172.9 million, representing 57.2% of total squid and octopus export value and increasing 15.2% year-on-year.

Among squid products, dried and grilled squid stood out with export value reaching USD 78 million, up 32.2%, making it the strongest-performing segment. Other processed squid products generated USD 17.2 million, up 25.6%, while exports of live, fresh and frozen squid totaled USD 77.6 million, remaining virtually unchanged from the previous year.

This trend suggests that demand for convenient squid products, which are easy to consume and well suited to Asian consumer preferences, is growing faster than demand for traditional frozen raw materials. Dried, grilled, lightly processed, and small-packaged products have benefited from the recovery of retail, convenience food, and foodservice channels across Asia.

Octopus exports reached USD 129.5 million, accounting for 42.8% of total squid and octopus exports and increasing 19.2%, outperforming squid in terms of growth rate. Exports of dried, salted, live, fresh and frozen octopus totaled USD 110.9 million, up 22.9%, remaining the sector's core product category. In contrast, processed octopus exports rose by only 1.1%, suggesting that the industry's deep-processing potential remains largely untapped.

Asia remains the primary growth engine

South Korea retained its position as the largest importer of Vietnamese squid and octopus, with imports valued at USD 115.6 million, up 23.2% and accounting for 38.2% of total exports. In May alone, exports to South Korea reached USD 28.8 million, surging 49% year-on-year.

South Korea continues to be the industry's most important market, particularly for octopus, while maintaining stable demand for frozen squid, processed squid, and convenience seafood products.

Japan ranked second with imports totaling USD 70.1 million, up 11.8%, representing 23.2% of total exports. Although growth was moderate, it remained stable, reflecting Japan's characteristic market profile: consistent demand combined with stringent requirements for quality, product specifications, food safety, and on-time delivery. In this market, Vietnamese exporters' competitive advantage lies not only in pricing but also in their ability to consistently deliver high-quality products tailored to modern retail channels.

Thailand emerged as one of the fastest-growing markets, with imports reaching USD 39.2 million, up 47.1%. Exports to Thailand totaled USD 8.4 million in May alone, an increase of 79.3%. Growth has likely been driven by dried squid, grilled squid, ready-to-eat dried squid, and other convenience products. Nevertheless, exporters should remain cautious about becoming overly dependent on a limited range of product categories.

Exports to China reached USD 26.1 million, up 14.3%. Including Hong Kong, total exports amounted to USD 28.2 million, an increase of 11.5%. China remains a market with significant growth potential, particularly for frozen squid, dried squid, grilled squid, and raw materials for processing. However, exports to China declined 32.9% in May, highlighting the market's continued sensitivity to price movements, inventory levels, and fluctuations in global supply.

The U.S. and EU continue to face pressure

Exports to the United States and the European Union remain under pressure, as both markets maintain particularly stringent regulatory requirements for wild-caught seafood such as squid and octopus.

Requirements related to catch certification, traceability, IUU (Illegal, Unreported and Unregulated) fishing controls, and raw material verification continue to become more rigorous. As a result, exporters are required to invest more heavily in supply chain management, raw material documentation, and closer coordination among fishing, procurement, and processing stakeholders.

Outlook

Overall, Vietnam's squid and octopus exports are continuing on a positive recovery path in 2026. Growth continues to be driven primarily by South Korea, Japan, Thailand, and, to a lesser extent, China.

Exports are expected to remain on a positive trajectory in the coming months, although the pace of growth will largely depend on three key factors: the stability of raw material supplies, consumer demand across Asian markets, and exporters' ability to meet increasingly demanding import requirements in major destination markets.

For squid, the greatest opportunities lie in dried, grilled, processed, small-packaged, and convenience products. For octopus, South Korea and Japan will remain the industry's cornerstone markets, although exporters should further develop higher value-added processed products to reduce reliance on semi-processed exports.

With export earnings reaching USD 302.4 million in the first five months of 2026, squid and octopus remain among Vietnam's strongest-performing seafood categories. To sustain long-term growth, however, the industry will need to strengthen raw material management, expand value-added processing, improve traceability systems, and proactively adapt to the evolving requirements of global seafood trade.