VASEP Office has just released the REPORT ON SHRIMP SECTOR IN 2016-2021 AND FORECAST TO 2025, with over 90 pages. I have read it many times, feeling that this is a rather elaborately edited document, with a lot of practical information and quite suitable outlooks, so I feel it is necessary to contribute a little more to promoting the book. This REPORT gives those of you who are participating in the shrimp value chain a little more necessary baggage for your very arduous natural path.
Through the REPORT ON SHRIMP SECTOR IN 2016-2021 AND FORECAST TO 2025, VASEP has updated the information, first of all, on the position of Vietnamese shrimp in the international market. From 2015 onward, Vietnam used to be the world's largest shrimp exporter. However, Indian shrimp has risen strongly since 2015, Ecuadorian shrimp has made a breakthrough since 2018, making Vietnamese shrimp ranked third only, but this top 3 proportion is not much different. Specifically, in the annual value of 26-28 billion USD of shrimp imports worldwide, India accounted for 15.7%, Ecuador accounted for 14% and Vietnam accounted for 13.6%. The remarkable point is that the expansion of the shrimp industry of the two countries mentioned above is more or less associated with the development of frozen equipment manufacturing technology of our Vietnamese enterprises. This point I add for reference.
Regarding its production, the country's shrimp farming area is over 740,000 hectares. In the past 5 years, the shrimp farming area has increased slightly by 1.5% annually. The output is over 900,000 tons/year, concentrated in the southwestern provinces, over 80%. Vietnam's black tiger shrimp ranks first in the world, with over 250,000 tons. Shrimp production increased sharply by 10%/year. This factor proves the continuous improvement of the farming process, with a much higher yield. Thereby, export turnover increased by 5%/year, although there were ups and downs in years. Export turnover increased along with aquaculture production, but it is also worth mentioning here because in the same period, shrimp export turnover of China and Thailand decreased quite sharply, over 20%.
In the field of farming, although they still import broodstock, they are self-sufficient in about 10% of vannamei broodstock and black tiger broodstock mainly due to domestic domestication.
In the processing sector, the division of processed products (HS code 16) and fresh and raw products (HS code 03) has no clear criteria. Statistics show that processed shrimp products only account for more than half of the export volume, and shrimp products exported to China are mainly fresh (whole tiger, headless). But in reality, whether processed or fresh, Vietnamese shrimp products are popular due to their beautiful designs, more stable and uniform quality. In short, the level of processing Vietnamese shrimp is much higher, in the top.
The main markets for Vietnamese shrimp consumption are the United States (20-23%), Japan (16-18%), EU (15-20%), China (13-15%), South Korea (9-10%). Vietnamese shrimp has high rankings in major markets such as No. 1 in Japan, No. 2 in the EU, No. 5 in the United States, No. 4 in China, No. 1 in Korea, No. 1 in Australia. Currently, vannamei shrimp are consumed a lot in the US, EU and Japan. Black tiger shrimp are consumed strongly in Japan, China and the United States.
Shrimp export turnover is about 3.8 billion USD/year, ranking third in the world after India and Ecuador. Shrimp export turnover accounts for about 45% of total seafood export turnover. Black tiger shrimp turnover only accounts for 15% of total shrimp export turnover.
Shrimp enterprises with high export turnover of Vietnam are Minh Phu, Stapimex, FIMEX, VinaCleanfood, Taika, Utxi.
Regarding the outlook for the next 5 years, the REPORT has recorded that by 2025, shrimp export turnover will be 5.6 billion USD, growing at 9% annually. In my opinion, VASEP makes this statement completely grounded. In the past five years, the growth rate is 5%/year; Optimism about the industry's ability to accelerate 9% is a difficult target to strive for. In 2017, there was an assessment of the possibility of reaching 10 billion USD of shrimp export turnover in 2025. The complicated developments over the past time have shown that this level of striving is too high and inappropriate. In terms of products, shrimp businesses will certainly flexibly penetrate each market according to their advantages and limit the strengths of their competitors. For example, focus on selling to China the whole big black tiger shrimp, boiled raw shrimp; These are the goods that the Chinese love and have few competitors. Restricting sales of IQF fresh shrimp to the US; but focus on boiled shrimp, ring shrimp, fried shrimp, powder coated shrimp…. because IQF fresh shrimp products are the strength of Ecuador and India because their prices are very cheap. For the Japanese market: focus on products that require sophisticated processing and beautiful designs because it will match the industriousness and hard work of Vietnamese workers. In the EU, of course, it is also necessary to develop the processed product line, because Ecuadorian fresh shrimp is occupying the leading market share here.
Regarding the market, determining to maintain and maintain the main markets are the United States, Japan, and the EU. At the same time, we attach importance to potential markets such as China, Korea, UK, Australia, Canada... However, every year, which market is the most expensive will depend on the specific situation. Because in the main and big markets, Vietnamese shrimp still have certain limitations. For example, the anti-dumping case against warm-water shrimp in the US is still valid. Every year, it is necessary to negotiate between two parties to maintain the existing tax rate of 0%, while the lawsuit is still a risk that has not ended. stop. Goods sold into Japan must be inspected for all shipments with many biological and chemical criteria. Goods entering the EU are still limited because ASC is still too low to meet the quality standards of this market. These factors are not small challenges for the shrimp industry to accelerate in the coming time.
Skimming once the REPORT will not feel all the useful information, I have read it many times. I found this to be useful information to keep. I take the liberty of thanking the Editorial Board. I add my thoughts at the end of the post. The dynamism, flexibility and diligence of the members in our shrimp value chain is an asset and a valuable advantage for the shrimp industry to make a breakthrough in the coming years. Not only will it exceed the set target, but it will also help the Vietnamese shrimp industry surpass two major competitors and rise to the top of the world in the near future.
Dr. Ho Quoc Luc - Former Chairman of VASEP, Chairman of the Board of Directors of FIMEX VN
More details about Report on Vietnamese shrimp industry in 2016-2021, forecast to 2025.