Vietnam shrimp exports on the upward momentum in the first 4 months of this year

The top 5 main shrimp import markets of Vietnam, including the US, Japan, EU, China, and South Korea, recorded growth of 15%-91% in the first 4 months of this year.

Shrimp exports remained stable growth in the first 4 months of this year thanks to high market demand and good export prices.

Demand in the markets recovered after the most stressful period of the COVID-19 epidemic, the supply in markets was insufficient, and price inflation increased. The conflict between Russia and Ukraine has contributed to disrupting the global supply of seafood including shrimp.

In this context, Vietnamese shrimp exporters have planned production, taking advantage of opportunities from the market.

According to some businesses, the demand, as well as the interest of international customers for Vietnamese shrimp at the present time, has also increased markedly, reflected in international seafood fairs such as the the North American Seafood Show in March 2022 and the Global Seafood Expo e at the end of April 2022.

The US is the single market that imports the most shrimp from Vietnam, accounting for 16%. In the first 4 months of the year, Vietnam shrimp exports to the US reached over US$291 million, up 47% over the same period.

Vietnam's shrimp exports to the US grew well in the first four months of the year. This market needs food supplies for the summer and the fall.

Shrimp is the most consumed seafood product in the United States because of its ease of preparation at home and popularity in the foodservice sector. The average American shrimp consumption is about 5 pounds per person in 2020.

However, high inflation in the US and large inventories after importing large quantities in the first months of the year, may cause US shrimp imports in April and May to slow down.

In March 2022, the US imported 76,626 tons of shrimp, worth over USD 729 million, up 22% in volume and 39% in value compared to March 2021. The average price of shrimp imports into the US in March 2022 reached $9.52/kg, up from $8.36/kg in March 2021.

China is Vietnam's fourth-largest shrimp import market. In April, shrimp exports to China increased sharply by 128% to USD 81 million. Accumulated in the first 4 months of the year, shrimp export turnover to this market reached more than USD 187 million, up 91% over the same period.

COVID-19 broke out strongly in China and the "zero COVID" policy caused shrimp exports to this market to encounter many bottlenecks. However, because many factories in China were closed, production was stalled, so this market also lacked shrimp supply for domestic consumption and export processing.

Therefore, Vietnam's shrimp exports to this market recorded growth despite the above challenges. It is expected that shrimp exports to China in the following months will continue to grow strongly.

Although the export results were quite good, the unusual weather affected the supply of raw shrimp and input costs such as gasoline and production materials, and shrimp seed price continued to increase, which eroded the profits of the business. In the second quarter of this year, shrimp export turnover is forecasted to continue to increase by about 12% over the same period in 2021, reaching USD 1.2 billion.

Compiled by Minh Trang