Continuous rise in Vietnam shrimp exports

The rise in the shrimp exports by Vietnam was thanks to stronger demand from main markets and upward trend of global shrimp price caused by supply shortage.

Markets

As of July this year, Vietnamese shrimp was exported to 76 markets. Top 10 key markets included the U.S., EU, Japan, China, South Korea, Canada, Australia, ASEAN, Taiwan and Switzerland. Shrimp exports to key markets saw the positive growth such as the U.S. up 16.3%; EU increased by 6%; China increased by 38%; Korea rose 9.3% excluding Japan fell 8.2%. Exports to smaller markets declined from 2.5%-28.6%.

Shrimp products for exports

The export value of all products of whiteleg shrimp and black tiger shrimp increased except for live/fresh/frozen black tiger shrimp (HS code 03) saw the y-o-y decline of 0.7%. Out of total shrimp exports in Jan-Jul 2016, the proportion of white shrimp increased by 1.5%; the share of black tiger shrimp fell 1.2% and marine shrimp downed 0.3% compared to the same period in 2015. The lower proportion of black tiger shrimp was partly because of decrease in supply caused by drought and salinity.

Of the total export value of shrimp, exports of canned other shrimp showed the deepest dive of 60%, however, this item accounted for a modest value of over US$1.7 million.

The U.S.

Vietnam shrimp exports to the U.S. maintained the growth thanks to higher demand from the market. While other suppliers to the U.S. such as India, Indonesia, Ecuador, Thailand saw the decrease in raw material supply, leading to higher export price. The U.S. also increased importing demand for black tiger shrimp while the harvests in both India and Indonesia fell. Now is the time for restaurants and retailers in the U.S. to launch the advertising strategy, trade promotion to boost consumption demand for shrimp. Vietnam shrimp exports to the U.S. in the first 7 months of this year reached US$364.8 million; up 16.3% over the same period last year.

The EU

Vietnam shrimp exports to the EU in the first 7 months of this year reached US$315.9 million; up 6% year on year. Inventories in the EU is low, importing demand for black tiger shrimp increased sharply while the supply of black tiger shrimp from Bangladesh, India, Indonesia to the market declined due to adverse weather.

In the EU bloc, importing demand for warmwater shrimp into the UK was still high due to lower supply of coldwater shrimp and its higher price. Vietnam shrimp exports to the UK increased by 6.6% in the period. Remarkably, in the EU bloc, Vietnam shrimp exports to the Netherlands showed the highest y-o-y increase of 25%.

China

Vietnam shrimp exports to China in the first 7 months of this year reached US$249.2 million; up 38% over the same period last year. Demand for importing shrimp by China is increasing strongly due to higher demand for domestic consumption, increase in people's incomes and down in domestic supply of shrimp.

Last year, China imported 300,000 MT of shrimp to meet the demand for fresh and processed shrimp in the domestic market. China is expected to remain high demand for importing shrimp in the coming period.

Japan

Shrimp exports to Japan as of July this year reached US$283.8 million USD; down 8.2% from the same period last year. Exports to this market went down due to higher price of shrimp imported into Japan despite yen’s strength. The higher price was attributable to decrease in raw shrimp supply from producers.

Vietnam shrimp exports in the coming months is expected to continue the rise in spite of unfavorable weather for domestic shrimp production.

By Kim Thu