Market demand and export target of Vietnam shrimp in 2024

In the first 5 months of this year, Vietnamese businesses have exported shrimp to 103 markets, earning 1.3 billion USD, an increase of 7% over the same period last year. The slight increase in export value compared to the same period is a positive sign, however, the shrimp industry continues to face many challenges as the world economy has not shown signs of recovery, inflation remains high, and the war has not ended.

The US Market

In the first 5 months of this year, Vietnam's shrimp exports to the US reached 229 million USD, up 1% from the same period last year. Shrimp exports to the US only increased sharply in January, while decreasing sharply in February, April and May.

In this market, inflation remains high, with high housing, gasoline, and gas costs. In addition, freight rates have increased sharply by 40% since May due to the war in the Middle East and China's hoarding of empty containers in anticipation of new tariffs on exports to the US. Vietnamese shrimp also faces strong price competition with shrimp from Ecuador, India, and Indonesia in the US market.

US shrimp import demand from Vietnam may increase slightly in the third quarter of this year as importers increase purchases to meet end-of-year holiday demand.

The EU Market

Vietnam exported 165 million USD worth of shrimp to Europe in the first five months of this year, an increase of 8% over the same period previous year. After declining in February and March, shrimp exports to the EU increased in April and May.

Due to several factors, including the protracted conflict between Russia and Ukraine, the weakening of the euro against the US dollar, detours that resulted in a 60% increase in freight costs, and China's hoarding of empty containers for export to the US, shrimp consumption in the EU market was extremely slow in the first quarter.

In addition, Vietnamese shrimp will face stronger competition from rival suppliers in this market such as India and Ecuador as these two sources face difficulties with high tariffs in the US market and will therefore reduce prices to increase exports to Europe.

In the coming months, EU shrimp import demand is expected to increase slightly until the end of the year. Demand for HS code imports in this market is expected to grow better than traditional items as inventories have been significantly reduced.

Japanese Market

Vietnam exported $183 million worth of shrimp to Japan in the first five months of this year, a 4% decrease from the same period the previous year. Exports decreased from February to May despite low importer inventory because of the fall of the Yen and high inflation, which made consumers more frugal with their purchasing. In contrast to other markets, Japan's import demand is still comparatively steady, and Vietnam's value-added shrimp continues to give it a competitive advantage over suppliers like Ecuador and India. To meet year-end requirements, Japan's import demand is anticipated to modestly increase starting in September.

Chinese Market

In the first 5 months of this year, Vietnam's shrimp exports to China and Hong Kong reached 260 million USD, up 21% from the same period last year. Exports to this market grew gradually from January to April. And there are signs of a sharp decline in May. The main reason is that Vietnam's shrimp prices are higher than those of rival suppliers.

In the coming months until the end of the year, Ecuador, India and Indonesia will focus more on the Chinese market due to high tariffs imposed by the US, so Vietnamese shrimp will face more difficulties in terms of price, especially whole vannamei shrimp and black tiger shrimp...

Korean Market

Vietnam exported 124 million USD worth of shrimp to South Korea in the first five months of this year, a 9% decrease from the same period the previous year. The weakening of the Vietnamese currency, slow consumption demand, high inflation, and rising interest rates have hindered the recovery of Vietnamese shrimp exports to South Korea. Despite lower stocks, importers are apprehensive to purchase in bulk because of ongoing rising inflation, depreciating currencies, and the approaching peak season, during which they anticipate a reduction in shrimp pricing.