Vietnam’s USD 4 billion shrimp export target for 2024 appears achievable

Exports to China and Hong Kong amounted to USD 91 million in October, a 44% increase. By the end of October 2024, cumulative exports to these markets had reached USD 676 million, up 31% year-on-year. Lobster exports were particularly strong, surging 157% to USD 298 million in the first 10 months. These gains were supported by China’s consumption-driven policies, which bolstered demand for imports.

Exports to the U.S. also showed positive momentum, exceeding USD 80 million in October, a 17% increase. Over the first 10 months, shrimp exports to the U.S. generated USD 646 million, growing by 10% compared to the same period last year.

Shrimp imports into the U.S. from its top three suppliers have declined, raising concerns about supply shortages. Reduced inventories, improved economic sentiment, and a rebalancing of supply and demand have fueled higher import demand. Additionally, U.S. shrimp prices are showing signs of recovery. Short-term demand is expected to rise further as businesses preempt potential tariff increases under Trump’s proposed policies by accelerating purchases.

In Asia, shrimp exports to Japan and South Korea in October increased by 18% and 28%, respectively, after fluctuating in previous months.

Meanwhile, exports to the EU climbed 32% in October, bringing the 10-month total to USD 408 million, a 17% rise year-on-year. Demand for Vietnamese shrimp in the EU has been steady throughout 2024, with consistent growth since April.

The performance of shrimp exports in the first 10 months of 2024 signals strong potential across major markets. Exports to the U.S. and EU are maintaining steady growth, while China’s economic policies continue to boost demand for Vietnamese shrimp.

Export prices for shrimp, particularly white-leg shrimp, are on an upward trend, enhancing profit margins for exporters. Raw shrimp prices remain favorable, further supporting production and export activities.

Processed shrimp products are experiencing robust growth, reflecting a shift among Vietnamese businesses toward higher-value products.

In 2023, global economic challenges, geopolitical instability, high inflation, and reduced consumer spending led to decreased shrimp demand in major markets. Simultaneously, an increase in global shrimp supply, driven by Ecuador’s rapid growth, caused an oversupply and significant price declines.

By 2024, these challenges have eased: inflation has subsided, demand from major markets has rebounded, shrimp supply growth has slowed, and global prices are showing signs of recovery. Despite ongoing challenges, Vietnam’s shrimp industry has achieved encouraging results, positioning it strongly to reach the USD 4 billion export target for 2024.

VFM