Vietnamese enterprises are leading in deep processing of shrimp for export.

Prices shoot up in Vietnam

According to shrimp exporters, there is the boom in shrimp prices in Vietnam in context of quick recovery of the economy after more than 16 months of stagnation.

According to Ms. Kim Thu, a shrimp industry expert from the Vietnam Association of Seafood Exporters and Producers (VASEP), in the second week of September 2024, the price of frozen raw head-on shell-on white-leg shrimp increased by about 20% compared to the same period in 2023. Compared to early August 2024, the price of shrimp size 30 and 40 increased by about 40%. Smaller shrimp increased by 13%-19% compared to early August.

Vietnam’s white-leg shrimp export prices to the US have been on an upward trend since February this year. White-leg shrimp export prices to the Japanese market are also expected to increase due to the continued popularity of Vietnam’s value-added, ready-to-eat products and the appreciation of the yen.

The current increase is due to the possible reduction in harvest output following Vietnam’s typical seasonal cycle. However, the main difference is the recovery in demand from the US, Vietnam’s largest export market for white-leg shrimp. Vietnam’s shrimp export has achieved the highest increase of two year in July 2024, thanks to a 23% year-on-year increase in export to this North American country, and are expected to continue to maintain growth momentum throughout the third quarter.

As Ecuadorian and Indian shrimp face warnings over antibiotics and labour issues, new opportunities may emerge for Vietnamese shrimp. Prices for live white-leg shrimp in Vietnam, which is processed into higher-end products, remain stable, while average prices for larger black tiger shrimp are trending up slightly.

According to a representative of Sao Ta Food Joint Stock Company, although market demand is more positive in August and shrimp prices also tend to be positive, the Vietnamese shrimp industry still faces many challenges, especially in the farming stage when facing the epidemic; at the same time, it have to deal with two shrimp lawsuits from the United States... The shrimp industry needs the cooperation of management agencies and the entire chain to be able to ensure the source of raw materials at the end of the year for processing and export.

Breakthrough in many markets

In August 2024, Vietnam's shrimp export reached US$ 404 million, up 20% compared to August 2023. Shrimp export in August continued to record the highest value since the beginning of the year and recorded the best growth since February this year. In the first 8 months of this year, shrimp export turnover reached more than US$ 2.4 billion, up 10% over the same period last year.

In August this year, shrimp export continued to record double-digit growth in most major consumer markets such as the US, China, and the EU. Markets such as Japan and South Korea recorded a slight increase.

Reduced inventories and increased demand for imports to serve the year-end holidays caused markets to enhance imports. In addition, raw shrimp prices from producing countries around the world as well as Vietnam tend to increase, positively affecting shrimp export prices.

For the US market, Vietnam's shrimp export to the US increased by 21% to US$ 91 million in August. In the first 8 months, shrimp export to this market reached US$ 482 million, up 7% over the same period last year.

Inventories in the US have decreased, retailers need to replenish inventories before the year-end holiday season. Positive information about the US economy has also helped Vietnam's shrimp export to the US to be more positive.

For the Chinese and Hong Kong markets, Vietnam's shrimp export to this market continued to recover in August with double-digit growth compared to the same period last year. In the first 8 months, shrimp export to this market reached US$ 477 million, up 21% compared to the same period last year.

Vietnam's shrimp export to China increased again thanks to increased import demand from this market. In addition, Ecuador (Vietnam's main competitor in the Chinese market) faces strict inspections from China and some shipments were rejected in June due to sodium metabisulfite residue. This affected Ecuador's shrimp export to China.

With positive signals, VASEP believes that Vietnamese seafood enterprises need to continue to maintain product quality and improve competitiveness to achieve the target of US$ 10 billion of export turnover in 2024