Why has Vietnam’s oyster export boom to Taiwan suddenly slowed down?

Vietnam’s oyster exports have achieved remarkable success in recent years, particularly in 2023, with strong growth across multiple markets. Oysters have emerged as a standout product among bivalve mollusks due to their high nutritional value and growing global demand.

However, the sudden shift from rapid growth to a notable decline raises concerns for exporters and highlights the need for strategies to reduce dependence on a single dominant market.

Reliance on key export markets

According to VASEP, Vietnam’s oyster exports, which grew steadily at the start of 2024, have shown a clear downward trend toward the end of the year. Since August, export value has consistently fallen, with October seeing a peak decline of 19%. Nevertheless, thanks to robust performance earlier in the year, total export value for the first ten months of 2024 still recorded a 14% increase, exceeding USD 12 million.

In the first six months of 2024 alone, oyster exports reached nearly USD 7 million, a 31% year-on-year rise. In 2023, oyster exports, mainly fresh or chilled, generated over USD 14 million, a 56% increase compared to 2022.

Taiwan primarily imports fresh, ice-packed oysters from Vietnam for signature dishes like oyster noodles and omelets. Most Vietnamese exporters focus on shelled or ice-packed oyster meat, but the market scope remains limited, primarily targeting Asian markets without significant entry into larger global markets.

Taiwan dominates Vietnam’s oyster export landscape, accounting for 76% of total export value. Laos and Cambodia are also notable consumers of Vietnamese oysters.

Expanding opportunities for Vietnamese oyster exports

On December 5, Ngo Minh Phuong, director of Viet Truong Co., Ltd. in Hai Phong, acknowledged Taiwan’s significant influence on Vietnam’s oyster exports. However, the more immediate challenge is the shortage of oysters for export.

“Typhoon Yagi destroyed approximately 80% of the oyster stock, leaving us without sufficient raw materials for export,” Phuong explained. “We focus on exporting processed oysters to Japan, while smaller enterprises handle frozen oyster exports to Taiwan.”

Phuong emphasized that addressing the weaknesses in the oyster farming sector—particularly water quality—is essential for producing clean oysters for export. Investments in advanced processing technologies, quality assurance systems, improved breeding stock, and sustainable farming methods are vital to expanding into live oyster exports.

Truong Dinh Hoe, general secretary of VASEP, pointed out Taiwan’s diverse consumer preferences. As one of the “Four Asian Tigers,” Taiwan serves as a gateway for Vietnamese products to markets in Europe, the Americas, and East Asia.

“Taiwan presents significant opportunities for Vietnamese seafood to enhance its value,” Hoe remarked. “However, a decline in demand from this key market can have a ripple effect on the oyster export sector. To avoid over-reliance, Vietnam must explore new directions for its oyster products.”

According to the International Collaboration Center for Aquaculture and Fisheries Sustainability (ICAFIS), in Khanh Hoa, 95% of oyster production is used as feed for lobster farming, 4% is consumed domestically, and only 1% is exported. Similarly, in Ho Chi Minh City’s Can Gio District, oyster farming spans 220 hectares, producing over 21,000 tons annually, but most of this is consumed locally.

VFM