Local aquatic product exports is expected to hit US$9.4 billion this year, a rise from US$8.5 billion last year, with this growth largely driven by a strong rebound in the demand of export markets, coupled with support from free trade agreements, according to the Vietnam Association of Seafood Producers and Exporters (VASEP).

The nation will continue to increase shrimp output in the year ahead, with local output anticipated to reach 730,000 tonnes, posting an annual rise of 4%.

Most notably, stable supply will be a key advantage for Vietnamese shrimp exporters as they strive to expand their share in various export markets globally.

The prices of exported shrimp are also forecast to rise slightly by 5% to an average of US$9.6 per kg, according to details released by Analysts of FPT Securities JSC (FPTS).

Furthermore, experts from BIDV Securities Company stated that it remains challenging for the Vietnamese shrimp sector to enjoy high export growth this year. This is largely down to the production of competitive countries, including India and Ecuador, beginning to show signs of a strong recovery, especially when the shrimp prices of both countries are between 10% and 15% lower than that of Vietnam.

Despite these challenges, the shipment of shrimps to the EU, which accounts for 21% of total Vietnamese shrimp export turnover, is expected to enjoy benefits from the EU-Vietnam Free Trade Agreement (EVFTA).

Whilst tariffs imposed on frozen shrimps were slashed to 0% immediately after the EVFTA came into effect on August 1, 2020, those on processed shrimps will fall to 0% from January 1, 2027.

The output of Vietnamese tra fish is also forecast to maintain its upward trajectory over the course of this year.

FPTS therefore expect that exports will bounce back due to growing demand coming from the country’s main importers, including China, the United States, and the EU.

The efforts of local businesses to focus on value-added processed products which are capable of meeting all requirements on food safety and origin traceability of products bodes well for the export value of processed tra fish which is projected to increase this year.