Shrimp exports to China halt their rise
VASEP anticipated that China is a huge market but tough competion in processing segment, thus Vietnamese enterprises must focus on remaining the market share of preliminarily handling shrimp.
According to VASEP, shrimp exports to China increased sharply by 126-140% in March, April, and May. However, in the next three months (June, July, and August) the growth rate reached 13-32%, especially in July, shrimp exports to China reduced by 17% from the same period last year.
According to VASEP, China has a high demand for shrimp. On the other hand, unfavorable weather conditions resulted in a slump in domestic output of seafood. Thus, Vietnam’s shrimp exports to China increased by 56%, reaching USD 438 million as of September 15, 2022.
The total imported volume of shrimp into China set a record with 95,000 tons, up 89% from the same period last year. Another record had been established in July with 93,000 tons.
The accumulated value of imported shrimp into China in the first eight months of the year reached the same value of the first eleven months of 2021, with 524,000 tons. The import value increased by 64%, valued at USD 3.42 billion.
The main Vietnamese shrimp products going to China included live lobsters, peeled headless white leg shrimp, frozen/fresh PD white leg shrimp, frozen headless peeled tail-off white leg shrimp, frozen whole black tiger shrimp, etc.
“China has more than 1,000 shrimp processing factories which earn huge profit by serving the domestic market. The country imports shrimp from Ecuador and India at cheap prices without worrying about rules of origin. Thus, Vietnam’s white leg shrimp have found it difficult to compete in this market”, said Hồ Quốc Lực, Chairman of the Board of Directors of Sao Ta Foods JSC.
China has a high demand for Vietnam’s whole black tiger shrimp which are mostly reared in extensive ponds in Cà Mau and Bạc Liêu.
The Chinese market is open and loosen regulations related to COVID-19 in fishing ports; however, regulations about importing frozen products are tough, making it difficult for businesses.
VASEP anticipated that in the last months of the year Vietnam’s shrimp exports to China would increase even though the growth rate is not as strong as previous months.