Big opportunity for Vietnam’s seafood exports in 2022
According to VASEP, an increase in sales of shrimp and pangasius will be recorded in 2022 when Vietnam will comply with the regulation of flexible adaptation to the Covid-19 pandemic.
According to VASEP, Vietnam’s shrimp export value is forecasted to increase by 10% as compared to 2021 and reach USD 4.3 billion in 2022. In November 2021, the US imported more than 726,000 tons of shrimps, up 7% as compared to the same period last year, mainly from India, Ecuador, Indonesia, Vietnam and Thailand.
Moreover, the US imposed a twofold increase in anti-dumping duty against shrimp imported from India, from 3% to 7.15% in November 2021. This has increased the competitive advantage of rivals, including Vietnam.
Beside this, the European-Vietnam Free Trade Agreement (EVFTA) will enable Vietnam to be more competitive in the EU market in 2022.
According to EVFTA, Vietnamese giant river prawn going to the EU market will be free of duty, and the tariff imposed on white leg shrimp will be reduced gradually to 0% by 2025.
As estimated by VASEP, Vietnam’s pangasius exports will fulfill the target of USD 1.65 billion in 2022, up 7% as compared to 2021.
The Directorate of Fisheries under the Ministry of Agriculture and Rural Development said that the country’s seafood export volume was estimated to reach USD 8.89 billion in 2021, up 5.7% as compared to 2020 and up 4.6% from the plan.
Local shrimp exporting companies have expanded their production capacity recently while pangasius exporting companies are completing the value chain and enjoy the duty 0% in the US market.
Some seafood companies have reported their business results with remarkable growth in 2021 so far.
Sao Ta Foods JSC is estimated to earn a worth of VND 4,850 billion revenue in 2021, equal to 112% as compared to 2020.
The company’s shrimp farm plans to stock post larvae after Tet Holiday as a fresh start of the new season, with another 52 ha being used for shrimp farming.
In 2022, the company will put the Sao Ta Seafood Factory, capacity of 15,000 tons/year, and the Tan An shrimp processing factory, capacity of 5,000 tons/year into operation, leading to an increase in total capacity by 20,000 tons/year.
Vĩnh Hoàn Corporation, the leading company in Vietnam’s pangasius sector is predicted to have advantages in exporting to the US market thanks to the export tax 0%. Vĩnh Hoàn earned VND 912 billion from exports in November 2021, up 38% as compared to the same period last year and up 17% from October 2021.
This is the highest revenue recorded from earlier this year. As of November 2021, the Corporation’s net revenue reached VND 8,118 billion, up 25.1% as compared to the same period last year.