Vietnam turns to domestic market to bolster seafood sector amid export challenges

A market of 100 million, largely untapped

While Vietnam exports over USD 10 billion of seafood annually to more than 170 countries, its domestic market, home to 100 million consumers, remains underdeveloped. Domestic seafood sales account for just 60-70% of local supply, with imports making up the rest. Despite a market size of around USD 1 billion, imported products such as salmon, cod, and shellfish already represent nearly half of that value.

Per capita seafood consumption in Vietnam is only 40 kg/year, far below Japan or South Korea, where it averages 60-70 kg. Pricing remains a key obstacle, with export-grade products costing at least 20% more than conventional seafood, limiting their reach in traditional markets. At the same time, Vietnamese consumers are still unfamiliar with value-added products such as canned or frozen seafood, while imported products are often perceived as superior in quality.

Seaspimex Vietnam, a leading exporter, reports that domestic sales contribute just 30% of revenue despite 30 years of dual-market development. Its canned crab products perform well in the US but struggle to gain traction at home.

From export focus to dual-market strategy

To address this imbalance, the Vietnam Association of Seafood Exporters and Producers (VASEP) has prioritized domestic market development through 2030. Its Club of Domestic Seafood Suppliers includes 27 companies offering a broad range of products and operates a promotional platform under the slogan “Export-Quality Products for Vietnamese Consumers.”

Still, industry experts say success will depend on structural changes. This includes strengthening supply chains, reducing intermediary costs, and improving logistics to make domestic seafood more price-competitive. Export-focused companies must rethink their strategy, treating the domestic market as a core growth avenue, not just a fallback.

VASEP emphasizes the need for greater transparency, food safety enforcement, and targeted consumer education to build trust in domestic brands.

Policy backing and industry expectations

In 2024, Vietnam’s Prime Minister issued Directive No. 29/CT-TTg to boost domestic consumption and support local production. The Ministry of Industry and Trade is leading efforts to place more Vietnamese goods on retail shelves, through in-store promotions, e-commerce campaigns, and communication programs to strengthen brand awareness.

Authorities are also urging seafood companies to invest in product diversification, market research, and supply chain traceability from farm or fishing port to supermarket shelf. Upgrading cold storage and transportation infrastructure is seen as vital to lowering costs and stabilizing prices.

At the same time, industry leaders are calling for more targeted government policies to ensure fair competition with imported goods and raise consumer awareness about the quality and safety of Vietnamese seafood.

With rising urbanization and a growing middle class, Vietnam’s domestic market offers significant long-term potential. But unlocking it will require coordinated effort from producers modernizing operations to policymakers strengthening infrastructure and enforcing standards. Amid global trade uncertainty, looking inward may be Vietnam’s most sustainable growth strategy for the seafood sector.

VFM