Seafood processing at Camimex. Company

Growth rate increases slowly

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), after reaching a record of over USD1.1 billion in April 2022 with a growth rate of over 50%, in May 2022, seafood exports failed to maintain this growth rate, but still reached the USD1 billion mark which was higher 27% than the same period in 2021.

In the first 5 months of 2022, the country's seafood exports brought in a turnover of over USD4.6 billion, up 42% over the same period in 2021.

According to the analysis of Ms. Le Hang, Deputy Director of VASEPP.RO Center, the growth rate of seafood exports in May 2022 slowed down compared to April, mainly due to a decrease in shrimp exports than before. In May, shrimp exports reached USD416 million, up 19%, after a hot 47% increase in April. By the end of May, shrimp exports were estimated at USD1.8 billion, up 38% and accounting for 39% of total turnover of seafood exports.

According to some businesses, shrimp exports in the first four months of this year increased dramatically as the availability of reserve materials and inventories from 2021, many businesses signed contracts from the end of last year at high prices. In the context of Covid-19 stress, global price inflation also affected shrimp prices to increase and the return of Vietnamese businesses to international seafood fairs in the US and EU.

However, at the beginning of May, the weather tends to be unfavorable for farmed shrimp; the first rain of the season is earlier than usual, affecting shrimp production, so the source of shrimp materials is not as positive as in the first four months of the year. Therefore, in May and the next few months, it is likely that shrimp materials will be in short supply. Besides, the shrimp demand of some main import markets tends to slow down after a strong increase from the end of 2021 until now. Therefore, shrimp exports in the second quarter are expected to grow slower than in the first quarter.

Businesses are worried about Covid-19

For the main product of pangasius, exports in May increased by 65% to USD 245 million, this increase was also lower than the previous month. However, in the first 5 months of the year, pangasius exports still maintained a high growth rate of nearly 90%, reaching over USD 1.2 billion. This year, the record price inflation of food and seafood in the world is an advantage for Vietnam's pangasius exports. Pangasius exports to markets increased sharply, especially the US, EU and China markets.

Despite the high growth of pangasius exports, many pangasius enterprises were confused when exporting to China because of regulations on strict inspection of traces of Covid -19 on imported seafood. Goods of some export enterprises were returned and were temporarily suspended from exporting to this market because of Covid-19. Although some big cities like Guangzhou and Shanghai have reopened, the country's zero Covid policy is still a challenge and big concerns with Vietnamese enterprises.

Tuna exports still maintained a high growth rate of 41% in May 2022, reaching over USD93 million. By the end of May 2022, tuna exports reached USD461 million, up 58% over the same period in 2021.

Although exports of other seafood products, such as squid, octopus, crabs, and shellfish, still increased over the same period, the increase was lower than in April.

In addition, some pangasius export markets also had less growth than expected, like the Colombian market. Currently, there are nearly 30 Vietnamese pangasius enterprises exporting to this market. However, exporting pangasius to this market has not been as desired by many pangasius enterprises.

The decline in pangasius exports to this market this year is a different trend compared to previous years. In the top 10 export markets of enterprises, Colombia is still one of the potential markets in South America. But according to the assessment, this decrease is only temporary and Vietnam's pangasius exports to Colombia are expected to grow gradually in the near future.