Vietnam’s lobster exports to China surge ninefold, but farmers still face heavy losses

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam’s total seafood export revenue in January 2025 exceeded USD 774 million, a modest 3% increase year-on-year. This growth was largely driven by strong demand from China, particularly for live seafood products such as lobsters, crabs, clams, and snails, which cater to the premium consumer segment during the Lunar New Year season.

Lobster exports to China alone reached USD 70 million (nearly VND 1.8 trillion), accounting for almost half of Vietnam’s total seafood exports to the market and marking a ninefold increase compared to the same period last year. The lobster trade with China has been booming since 2024 and continued its upward trajectory in January. Similarly, crab exports also saw a remarkable surge, rising 18 times to USD 18.5 million.

China’s robust import demand contributed to a 24% increase in Vietnam’s overall shrimp exports, helping drive the seafood sector’s growth. However, despite the sharp rise in export volume, many lobster farmers are still facing significant losses due to plummeting farm-gate prices.

Farmers in Khanh Hoa report that lobsters are currently selling for VND 700,000 per kilogram, the lowest price in three years. To break even, prices would need to reach at least VND 820,000 per kilogram. At this rate, farmers are losing hundreds of millions of dong per ton of lobster.

Nguyen The Phong, a representative of Vinsea Import-Export Company, a firm specializing in lobster exports to the U.S., confirmed that since the COVID-19 pandemic, lobster prices have significantly declined. Prices have dropped even further, falling by more than VND 100,000 per kilogram compared to pre-Tet levels.

Phong attributes the price drop primarily to an oversupply of lobsters. “After the Lunar New Year, demand naturally declines, which leads to lower prices. Additionally, in our largest export market, China, Vietnamese lobsters are facing fierce competition from other countries,” he explained.

Phong emphasized the need for better supply-demand management and market diversification. “Vietnamese lobsters used to have unique advantages, but now, supply from Australia, Canada, and the U.S. is increasing, offering more competitive pricing. The situation has worsened since China lifted its ban on Australian lobster imports, further shrinking Vietnam’s market share,” he noted.

Moreover, Southeast Asian countries like the Philippines, Indonesia, and Malaysia are now exporting tropical spiny lobsters, similar to Vietnam’s product, at more attractive prices. At the same time, China has tightened quality control measures on seafood imports, making it even harder for Vietnamese lobsters to compete.

Phong stressed that in the long run, businesses need strategic approaches to enhance Vietnam’s lobster brand by improving both price competitiveness and product quality. Instead of relying too heavily on the Chinese market, exporters should explore alternative sales channels, such as expanding the domestic market and developing official export routes to other countries with support from relevant authorities.

Looking for new opportunities, Doan Van Quang, Director of Song Cau Lobster Cooperative in Phu Yen, revealed that his cooperative is in the process of securing official export approvals for green lobsters to Japan and South Korea. He hopes that in the near future, both domestic and export markets will improve, allowing lobster farmers to sustain their livelihoods.

VFM