Vietnam bets on diversification to navigate seafood trade challenges
Strong export growth in H1 2025 masks mounting risks from tariffs, climate disruptions, and regulatory headwinds, prompting a strategic shift toward new species and markets.
Solid first-half performance, but storm clouds ahead
Vietnam’s seafood sector posted impressive results in the first half of 2025, with total output reaching 4.5 million tonnes, up 3.1% year-on-year. Aquaculture accounted for 2.57 million tonnes (up 4.9%), while capture fisheries contributed 1.97 million tonnes (up 1%).
Seafood exports rose 16% to USD 5.11 billion, led by a 30.4% surge in shrimp sales to nearly USD 2.14 billion. Pangasius exports reached USD 925 million, an 8% increase from the same period last year.
Despite the growth, industry officials warned of rising threats. Deputy Director General Nhu Van Can from the Directorate of Fisheries cited higher production costs driven by tariffs and trade barriers, worsening weather patterns due to climate change, and ongoing institutional reforms under Resolution 18-NQ/TW.
Vietnam’s failure to fully address illegal, unreported and unregulated (IUU) fishing remains a sticking point. The European Commission’s “yellow card” warning is still in effect, while many export markets are tightening traceability and legality standards.
Eel, tilapia, seaweed tipped as new growth drivers
The sector is targeting total seafood output of 9.78 million tonnes in 2025, including 5.98 million tonnes from aquaculture, across 1.3 million hectares of farming area. Export revenue is projected to hit USD 10 billion, though officials note this falls slightly short of earlier targets due to expected U.S. countervailing duties.
To reduce reliance on core exports like shrimp and pangasius, Vietnam is prioritizing emerging species such as eel, tilapia, and seaweed for expansion.
Market diversification urged as U.S. headwinds mount
Ngo Hong Phong, Director General of the Department of Quality, Processing and Market Development, said the USD 10 billion target would be “extremely challenging” amid continued U.S. trade volatility. His department is working with the Directorate of Fisheries to reopen the Chinese market for spiny lobster, potentially unlocking substantial new demand.
Brazil has also approved imports of pangasius and tilapia, creating new opportunities in Latin America.
Le Hang, Deputy Secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP), warned that the second half of 2025 may prove tougher. High inventories in key markets could suppress demand, and proposed U.S. countervailing duties of up to 20% would further erode competitiveness, compared to 10% for Ecuador and 19% for the Philippines and Indonesia.
“Many companies have started diversifying their markets,” Hang said. “But with only six months left in the year, the window is tight. This is a lesson in not putting all eggs in one basket.” VASEP is urging members to explore new markets in Brazil, South Korea, and the Middle East.
Technology and investment seen as critical levers
Deputy Minister of Agriculture and Environment Phung Duc Tien called for accelerated innovation under Resolution 57, better regulatory coordination, and deeper international integration.
To meet growth targets, Tien emphasized the need to upgrade breeding stock and attract private-sector investment to secure high-quality seed. He also urged large corporations to boost marine farming through modern technology, improved supply chains, and standardized technical practices.
In capture fisheries, Tien highlighted the need to modernize vessel design and onboard processing, alongside better training for captains and engineers.
On conservation, he called for a full audit of marine protected areas to assess effectiveness and chart a path forward. Regarding IUU fishing, the ministry is ramping up local-level enforcement to meet EC requirements and lift the “yellow card” warning.
VFM
