Shrimp exports levelled off in August and September

In the first half of 2019, shrimp production increased, raw shrimp prices decreased, while shrimp inventories at markets were high. Besides, the supply of shrimp from other countries also lifted, resulting in lower prices of imported shrimp in markets compared to the same period in 2018. Therefore, shrimp exports continued the downward trend from 2018. Exports decreased mainly due to poor export results in the first half of the year. In July, export showed signs of recovery but exports slowed down in August and September.

In the first 9 months of 2019, in the structure of Vietnamese shrimp export products, whiteleg shrimp accounted for 69.4%, black tiger shrimp represented for 20.9% and the rest was marine shrimp. White leg shrimp exports reached US$1.7 billion, down 5.8% over the same period in 2018; Black tiger shrimp exports reached US$508.2 million, down 16%; Other marine shrimp exports reached US$236.5 million, up 6.3%. Processing of black tiger shrimp had the strongest decline of 35% while canned shrimp exports had the highest growth increased at 33.5%.

EU

In September 2019, shrimp exports to Vietnamese largest shrimp importer - the EU, reached more than US $ 61 million, down 23% compared to September 2018. In the 3 main importers of Vietnamese shrimp in the EU (the UK, Netherlands, Germany), exports to the UK and the Netherlands decreased by 2 -digits, at 37% and 32% respectively, exports to Germany declined by 9%. Accumulated in the first 9 months of 2019, shrimp exports to the EU reached US$ 513.4 million, down 20.8% over the same period in 2018.

Averaged import price of shrimp of these markets decreased by US$1/kg compared to 2018. The prices in the UK decreased from US$12 to US$11, that of in Germany slid from US$10.8 to US$9.8, and that of in Netherlands decreased from US$11 to US$9.57/kg. Compared to other countries such as India and China, the price of imported shrimp from Vietnam was still higher from 15 to 20% (US$1-2/kg).

The EU accounted for about 31% of the world's total shrimp imports and made up 21% of Vietnam's shrimp exports. If enterprises can take advantage of tariff incentives from the EVFTA and effectively apply the rules of origin, Vietnamese shrimp exports to the EU might have an opportunity to increase from 2020. However, exports to the EU in the second half of the year are not likely to recover.

The US

After positive growth in 4 months from May to August, Vietnamese shrimp exports to the US in September 2019 decreased by 18% to US $ 64.7 million. In the first 9 months of 2019, shrimp exports to this market reached US$476.9 million, an increase of 1% over the same period in 2018.

The US was still Vietnam's second largest shrimp importer after the EU, accounting for 19.6% of Vietnam's total shrimp export value to markets.

In the US market, India was still the leading market share (accouting for 38%) but the averaged price of Indian shrimp in this market plummeted from US$10 to US$8.6/kg, while Vietnamese shrimp prices decreased from US$12. to US$11/kg, Vietnam's market share went down from 11% to 8.3%. Compared to Asian and Latin American shrimp supply to the US market, Vietnamese shrimp prices remained at the highest levels.

Demand for US shrimp imports from Vietnam was more positive from May to August due to reduced inventories while the US also reduced imports from India, Thailand and sharply went down imports from China. However, the US applied the seafood import monitoring programme (SIMP) for seafood imported from Vietnam, including shrimp, which also caused many difficulties for Vietnamese enterprises to the US.

In the first 9 months of 2019, shrimp exports to Japan reached US $ 444.7 million, down 1.9% compared to the same period in 2018.

In the Japanese market, although the export volume was stable and the demand of the market did not increase, the average export prices decreased by US$1/kg from US$12 to US$11, resulting in decreasing in the export value to this market. Meanwhile, shrimp prices from Thailand and Indonesia were stable at US$11/kg, Indian shrimp prices fell slightly to US$9.3/kg.

Shrimp exports to China increased by 7.2% to US$382.3 million in the first 9 months of 2019 thanks to continuous positive growth from July to September.

Shrimp exports tend to be more positive in the US, China and Japan in the last months of the year when inventories decreased. However, exports to the EU market in the last months of the year have not recovered. Competition on shrimp prices is still a big pressure for businesses. Vietnamese shrimp exports for the whole year of 2019 are expected to reach about US $ 3.4 billion, down 4% compared to 2018.