Maintaining positive growth momentum in shrimp exports

This robust growth was fueled by the effective utilization of free trade agreements (FTAs), market expansion, and increased value addition through deep processing.

In 2024, shrimp exports are projected to reach USD 4 billion, accounting for 40% of total seafood export revenue. Notably, value-added processed shrimp products make up over 40% of this figure.

FTAs unlock new opportunities

Vietnam’s extensive network of FTAs, established with more than 60 countries and economies, has laid a strong foundation for businesses to expand internationally. According to Nguyen Hoai Nam, Secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam’s seafood exports have reached over 160 markets, with billion-dollar revenues concentrated in those where the country has bilateral or multilateral trade agreements.

Economic experts highlight that while the European Union (EU) is one of the world’s largest seafood-consuming markets, Vietnam’s market share remains relatively small, indicating significant growth potential. In this context, the EU-Vietnam Free Trade Agreement (EVFTA) is expected to serve as a crucial catalyst for boosting Vietnam’s seafood exports to the EU.

Vietnam has also signed two next-generation FTAs with the United Kingdom: the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the UK-Vietnam Free Trade Agreement (UKVFTA). The UK ranks as the sixth-largest individual market for Vietnamese shrimp, accounting for 5.5% of total export value. In January 2025, shrimp exports to the UK generated over USD 16 million, an 8% increase compared to the same period in 2024, maintaining a strong growth trajectory.

In the Middle East, the Comprehensive Economic Partnership Agreement (CEPA) between Vietnam and the United Arab Emirates (UAE), signed in October 2024, has opened up promising opportunities for Vietnam’s seafood exports. As one of Vietnam’s leading trade partners in the region, the UAE serves as a key gateway to broader Middle Eastern markets.

Ho Quoc Luc, Chairman of the Board at Sao Ta Foods JSC, emphasized that thanks to FTAs and the proactive efforts of businesses, Vietnamese shrimp has gained popularity in key markets such as Japan, South Korea, and EU member countries. These agreements not only facilitate access to highly competitive markets but also help Vietnamese shrimp maintain a strong foothold in major export destinations.

However, Tran Thanh Hai, Deputy Director of the Import-Export Department under the Ministry of Industry and Trade, pointed out that while FTAs offer expansion opportunities, they also present challenges. Vietnamese shrimp must compete fiercely with leading shrimp producers such as Ecuador, India, and Thailand. Additionally, stringent regulations on traceability and quality standards in markets like the US and EU pose significant hurdles that must be addressed. To fully leverage FTA benefits, businesses must enhance product quality, increase value-added processing, and meet the stringent standards of new markets.

The Ministry of Industry and Trade has been actively implementing measures to support and expand export markets. Key initiatives include trade negotiations to remove technical barriers, lower tariffs, and create favorable conditions for Vietnamese seafood to penetrate high-potential markets. Strict quality control, monitoring antibiotic residues, and adherence to international food safety standards remain top priorities to build consumer trust.

Accelerating deep processing

Effectively capitalizing on FTAs is a key strategy for the future growth of Vietnam’s shrimp industry. In addition to government support, businesses must diversify their product offerings to enhance competitiveness. According to VASEP, Vietnam holds a significant advantage in deep processing. Value-added shrimp products such as steamed shrimp, breaded shrimp, battered shrimp, shrimp skewers, tempura shrimp, and shrimp dumplings are highly favored in various markets worldwide.

Le Van Quang, CEO of Minh Phu Seafood Corporation, noted that Vietnamese companies have successfully developed a wide range of high-value processed shrimp products, which some major shrimp-producing countries like Ecuador and India either do not manufacture or produce in limited quantities. It could take these countries 5-10 years to reach Vietnam’s current level of shrimp processing. Ho Quoc Luc of Sao Ta Foods JSC also highlighted that Vietnam has become a leader in shrimp processing, steadily capturing premium markets such as Japan, South Korea, the US, the EU, and Australia. The industry continues to advance, offering an increasingly diverse range of processed shrimp products.

In 2024, deep-processed shrimp accounted for more than 40% of Vietnam’s total shrimp export value of USD 4 billion. According to VASEP, export revenue from processed shrimp is growing at a faster pace than that of fresh and frozen shrimp. Vietnam is striving to become the second-largest supplier of cooked, seasoned, and breaded shrimp to the US market.

Recently, countries like Ecuador and India have begun entering the deep-processing sector. Sociedad Nacional de Galapagos (Songa), a globally renowned Ecuadorian shrimp exporter with sales exceeding USD 600 million in 2024, has invested in value-added shrimp processing lines with a capacity of approximately 91 metric tons of raw whiteleg shrimp per day. This move aims to maximize Ecuador’s low-cost domestic shrimp supply and leverage its geographic proximity to key markets like the EU and the US.

Despite these developments, Vietnam remains well ahead of Ecuador and India in deep processing, particularly in the high-end market segment. To sustain its lead, Vietnamese enterprises must continue investing in technology and innovation. European markets, in particular, prioritize high-quality, traceable, environmentally friendly, and convenient products.

To further expand Vietnam’s shrimp market share in Europe, businesses must strictly adhere to quality and packaging standards. At the same time, ensuring steady growth requires cost reduction strategies and enhanced competitiveness.

Maximizing the advantages of FTAs, strengthening economic diplomacy, exploring niche markets, applying advanced technology in shrimp breeding and sustainable farming, and intensifying deep processing are fundamental strategies for Vietnam’s shrimp industry. These approaches will open new doors to premium markets, set Vietnamese shrimp apart, and reinforce its global reputation.

VFM