Vietnam shrimp exports flourished in the first quarter of the year

There are still concerns about the new variant of Covid-19 and its effects but overall restrictions have been eased. Airlines resume normal operations, travel recovers, foodservice sector recuperates. This is considered one of the supporting factors for the growth momentum of Vietnam's shrimp exports in the first quarter of this year.

Reports from provinces with large shrimp farming areas such as Soc Trang, Ca Mau, Bac Lieu, and Kien Giang showed positive progress and success in the stocking. In the first 3 months of this year, Soc Trang is the province with the largest shrimp export volume, reaching over 231 million USD, accounting for 24.4% of the total shrimp export value of the country during this period. With the priority of developing effective production models, Soc Trang has been leading the country in shrimp export turnover for 2 consecutive years, with a value of more than 1 billion USD. The next largest shrimp exporting provinces are Ca Mau (accounting for 24%), Bac Lieu (accounting for 10.8%), Hau Giang (accounting for 8.2%), and Ho Chi Minh City (accounting for 6.3%).

In the first quarter of this year, Vietnam's shrimp exports to major markets recorded double-digit growth. The US continues to be the single largest importer of Vietnam's shrimp with a proportion of 20.4%. Vietnam's shrimp exports to the US accumulated in the first 3 months of this year reached nearly 195 million USD, up 45% over the same period.

The number of Covid cases in the US remains low and the vaccination rate is high. People's lives are adapted to Covid - 19. According to experts, shrimp imports from the US in 2022 will continue growths.

Shrimp sales in the US foodservice industry skyrocketed in 2021, although they have not recovered to pre-pandemic levels. The demand for large-sized shrimps (26-30 pcs/kg) and for easy-to-process shrimps tends to increase markedly. Nearly 137,000 tons of shrimp were consumed through foodservice channels in 2021, an increase of 25,000 tons compared to 2020. With the recovery of demand for the HORECA chain and the strength of processed shrimp, Vietnamese shrimp exports to the US will continue tobe positive in 2022. 

Vietnam's shrimp exports to the EU in the first quarter of this year reached more than US$159 million, up 66% over the same period last year. Exports to three main single markets in the bloc, namely the Netherlands, Germany, and Belgium, increased by 77%, 59%, and 82%, respectively.

The demand for shrimp in Europe usually increases in late summer and early autumn, so importers and distributors in this market are preparing orders from this time.

Vietnam's shrimp exports to China in the first three months of this year reached over $106 million, up 70% over the same period. This is a good signal for shrimp exports to this market after a quiet 2021. The demand for shrimp imports from this market this year will be more stable when China this year advocates increasing the amount of imported seafood to 66 million tons to reduce demand for pork. However, this country is still pursuing the 'Zero Covid' policy, so it will more or less affect Vietnam's shrimp exports to this market in the near future.

It is forecasted that shrimp exports in the second quarter of this year will continue to have a high growth momentum. If the situation is favorable, shrimp export turnover in the whole year of 2022 can achieve a growth rate of 10%. Vietnam's shrimp exports this year will have a steady growth momentum thanks to the demand from still good markets and incentives from Trade Agreements such as CPTPP, EVFTA, UKVFTA, RCEP... However, situations in some markets such as China maintaining the "Zero Covid" policy, sea freight not showing any signs of "cooling down", and instability from the Russia-Ukraine conflict... are still challenges that shrimp companies must face in the next quarter.

Compiled by Minh Trang