Vietnamese seafood exports in the fourth quarter of the year are projected to reach approximately US$2.3 billion, a slight decrease in comparison with the same period last year amid COVID-19 challenges, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). 

Seafood is one of the country's key hard currency earners
in the remaining months of 2020

The VASEP attributed this decline to low demand in countries impacted by COVID-19, coupled with a shortage of raw materials for processing. Tra fish exports and other seafood products, for instance, have been severely impacted by the pandemic, largely due to lockdown orders in affected markets.

Despite the negative impact, the VASEP projects that there remains positive signs for seafood exports moving forward, especially in terms of the United States market, which is expected to record a high demand for shrimp.

Most notably, white-leg shrimp products have sold well in the retail segment, while other seafood items such as canned tuna look set to enjoy greater opportunities to increase exports to the US market.

White-leg shrimp exports have also seen bright prospects for export to the EU market, while other seafood products such as shrimp, tuna, octopus squid, and mollusks enjoy import duties of 0% due to the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) on August 1.

These moves are anticipated to serve as leverage for seafood exports to the EU in the last three months of the year, with firms seeking sources of raw material and striving to effectively optimise tariff preferences from the EVFTA.

Meanwhile, the demand for seafood products in the Chinese market is predicted to bounce back during the fourth quarter, as its domestic supply source is experiencing a downward trajectory due to the COVID-19 epidemic.

Also in Asia, the Republic of Korea (RoK) and Japanese markets are projected to witness stable demand, with shrimp exports expected to increase in these markets over the coming months.

Following a stagnation in transactions in the first half this year, local seafood enterprises have sped up their delivery progress and are attempting to take full advantage of the EVFTA in the third quarter.

The Ministry of Industry and Trade (MoIT) reported the fisheries sector grossed roughly US$6 billion during the past nine months, a slight annual decrease of 4%, due to the COVID-19 pandemic.

Currently, Vietnam exports seafood to 154 markets, of which the six leading export markets are  Japan, the US, China, the EU, the RoK, and ASEAN, accounting for nearly 80% of the total export turnover.

The MoIT forecast that seafood exports are likely to reach US$8.3 billion this year, marking a decrease of 3.8% from last year.