Shrimp exports have the opportunity to reach over US 4 billion


Shrimp exports have the opportunity to reach over US$4 billion

Shrimp exports in the first two months of 2022 increased by 46% over the same period last year. Photo

Many opportunities in US and EU markets

According to the Directorate of Fisheries (MARD), in 2022, Vietnam’s shrimp exports will face a number of new challenges. A survey by the Global Fisheries Alliance (GAA) shows that the world’s shrimp production in 2021 increased by about 8.9% compared to 2020 and is predicted to continue to increase in 2022.

This will cause huge impacts on Vietnam’s shrimp industry. Specifically, competition in the main shrimp import market of Vietnam has become more intense. World raw shrimp prices tend to decrease, which will put great pressure on Vietnam’s shrimp industry. In addition, the challenge also comes from the change in quarantine regulations for imported products in many countries, and warnings about food safety.

Mr. Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), said that this year, market demand will continue to recover, but it will be difficult to implement long-term contracts. The main market groups of Vietnamese shrimp are the US, EU, Japan, China and Korea.

The US is the bright spot market for Vietnamese shrimp in 2021 with an export turnover of over US$1 billion. However, this is also a bright spot for other shrimp exporting countries such as India, Indonesia and Ecuador.

Vietnam has a strong position in breaded shrimp, but for shelled and peeled shrimp, India, Indonesia and Ecuador have a large market share. “In 2022, the US will be the largest market for Vietnamese shrimp. Taking advantage of the anti-dumping tax rate of 0%, enterprises continue to promote shrimp exports to this market when the market demand is still very large,” said Mr. Hoe.

For the EU market, after the impact of the Covid-19 pandemic, shrimp exports to the EU decreased in the third quarter of 2021 and began to increase strongly in the fourth quarter of 2021, mostly small-sized shrimp.

In 2022, the demand for shrimp consumption in the EU market begins to increase again, especially in the UK, Germany, the Netherlands and Belgium, etc. The biggest rival of Vietnamese shrimp in the EU is Ecuador. However, Vietnamese shrimp has strength in products that are deeply processed with medium and small sizes.

“Shrimp exports to the Russian market will be interrupted due to the risks of payment and transportation and will be difficult to recover in a short time. In addition to the main markets, businesses need to focus on other potential markets such as Canada, Australia, the UK, to limit their dependence on one market group. Enterprises need to have a strategy to develop strong products in key markets, limiting the strengths of other countries,” the VASEP Secretary General said.

Increase cost, reduce competition

Many agricultural experts said that the Russia-Ukraine conflict, plus fuel costs and international shipping fees, continue to increase, having a strong impact on the price of Vietnamese shrimp products in 2022. This leads to a decrease in the competitiveness of Vietnamese shrimp compared to Indian, Ecuadorian and Indonesian shrimp.

The representative of the Directorate of Fisheries stated that the significant challenge facing the Vietnamese shrimp industry is that broodstock depends on imported sources and that exploited from the wild, only a part can be supplied domestically in production.

In general, the production cost of shrimp in our country is higher than that of other countries in the region. The reason is that shrimp feed still accounts for a high proportion of the production cost (about 65% of the cost of industrial shrimp farming); the cost of seed is high due to the import of broodstock; many farming areas without electricity must use explosives to pump water, air fans and generate electricity (the cost is twice as high as using electricity); as well as the high cost of transportation of materials and raw materials.

Besides, the technology of extensive shrimp farming is not suitable, productivity is low, production efficiency is not high. Although the area is large, the output and value are low. The extensive shrimp farming area needs breakthroughs in technical, scientific and technological solutions, in terms of seed (breeders with disease resistance and fast growth).

Deputy Minister of Agriculture and Rural Development Phung Duc Tien suggested localities step up the application of science and technology in shrimp farming; which emphasizes the role of the Aquaculture Research Institute II, it is necessary to promote research and replication of high-quality broodstock production, minimizing imports.

In addition, Mr. Tien also requested units and businesses to promote linkages in the shrimp chain. “Small farming establishments need to link up into cooperatives and cooperative groups. This is a very important form of production, chain linkage will promote the sustainable development of the shrimp industry,” said Mr. Tien.


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