In June 2024, Vietnam’s shrimp exports recorded positive growth compared to the same period last year and surpassed the previous month. The export value of shrimp in June reached USD 344 million in June, up 5% compared to June 2023. Overall, in the first half of 2024, the shrimp export value reached nearly USD 1.6 billion, a 6% increase over the same period last year.
China and Hong Kong markets
In the first half of this year, shrimp exports to China and Hong Kong reached USD 328 million, a 17% increase compared to the same period last year. After a decline in May, shrimp exports to this market rebounded in June. However, in the coming months until the end of the year, Vietnamese shrimp exports to China will face price pressure due to competition from Ecuador, India, and Indonesia, which are focusing more on the Chinese market because of high tariffs imposed by the US.
The US
Shrimp exports to the US in the first half of 2024 reached USD 303 million, up 1% compared to the same period last year. After a decline in May, shrimp exports to the US increased again in June. In this market, inflation remains high, and shipping costs surged by 40% from May due to the conflict in the Middle East and China stockpiling empty containers to prepare for exporting goods to the US before new tariffs take effect. Vietnamese shrimp also face strong price competition from shrimp from Ecuador, India, and Indonesia.
Japan and South Korea
Shrimp exports to Japan and South Korea in the first half of this year still recorded slight declines compared to the same period last year, reaching USD 229 million and USD 149 million, respectively, down 3% and 10%. However, value-added products from Vietnam in the Japanese market still maintain a better competitive edge compared to other suppliers like India and Ecuador. Import demand from Japan and South Korea is expected to increase slightly from September to meet year-end needs.
EU
After the first quarter, shrimp exports to the EU grew well. In June, shrimp exports to this market reached USD 52 million, up 31%. Overall, in the first half of the year, exports to the EU reached USD 217 million, up 13%. In the coming months, the demand for shrimp imports from the EU market is expected to continue increasing.
Gear up for a strong second half
Overall, the shrimp industry is facing two major issues: low shrimp export prices due to competition with shrimp from Ecuador and India, and complicated disease outbreaks in farmed shrimp that have not been resolved, potentially causing a shortage of raw shrimp in the second half of 2024.
According to market rules, from the third quarter onwards, importers ramp up purchases to prepare for year-end holidays. Therefore, shrimp prices may improve better than at present, but a strong increase is unlikely.
Despite numerous challenges, shrimp export enterprises have consistently adopted proactive strategies. For instance, although the US market has significant consumption potential, Vietnamese shrimp face tough competition from cheaper shrimp from Ecuador and India, along with recently soaring shipping costs. Consequently, most enterprises have shifted their focus to nearer markets such as Japan, South Korea, Australia, and China. Some enterprises have taken the initiative in farming activities, developing farming and harvesting solutions to achieve better prices.
In the latter half of the year, there is optimism that major import markets will show improved signs, inventory and transport difficulties will lessen, demand will rebound, and prices will rise again. If all expectations align favorably, the outlook for shrimp will improve, ensuring the shrimp industry’s targets for 2024 are achieved.
VFM
