Japan looks set to be the target market of Vietnamese shrimp exports ahead in the second half of the year amid excessive inventories in the United States, according to VASEP.
Hồ Quốc Lực, chairman of the Board of Directors of Sao Ta Food Company, revealed that though the Japanese market requires Vietnamese shrimp products to be diverse and mostly refined items, freight costs to the Far East nation are not high compared to shipping routes to the US and the EU.
These advantages are expected to not ramp up the selling prices, but to contribute to facilitating greater shrimp consumption in the time head, noted the executive.
Furthermore, the Russia-Ukraine conflict in Eastern Europe has caused inflation in the EU and the US to rise, while Japan’s inflation rate remains low, a factor which has also created an advantage for maintaining shrimp consumption moving forward.
The VASEP representative anticipated that Vietnamese shrimp exports moving into the second half of the year will not be equal to the first half of the year due to weather factors and microsporidian parasites in shrimp farms on a large scale.
Moreover, the excessive inventories of the US market, coupled with fierce competition from cheap products from rivals such as India, Ecuador, and Indonesia will also impact shrimp exports in the remaining months of the year.
However, Lực pointed out that shrimp export turnover this year will stand at least 10% higher than last year, adding that the shrimp industry is likely to achieve an output of one million tons this year.