According to statistics of VASEP, after a sharp decline in August, September, shrimp exports in October recovered and reached a turnover of 425 million USD. Shrimp processing and exporting enterprises are taking advantage of opportunities from the US and EU markets, “racing” for the goal of shrimp exports in 2021 to reach US$3.8 billion.
The US market is quite fond of large shrimp products, fresh/frozen meat shrimp (PD) from Vietnam. During the 4th epidemic in Vietnam, shrimp exports to the US only decreased in August and quickly recovered in September. Currently, the demand for US shrimp imports from Vietnam has been quite stable since the pandemic COVID-19 broke out around the world. Accordingly, in October, shrimp exports to the US reached US$118 million, up 19% compared to October 2020. Accumulating 10 months, shrimp exports to this market reached US$893 million, up 22% over the same period last year. VASEP forecasts that from now until the end of the year, shrimp exports to the US will make positive progress, this growth momentum will last until the first quarter of 2022.
In the EU market, facing competitive pressure from increasingly large competitors, Vietnamese enterprises, although facing many difficulties after the distance, must devote all resources to restore production, take advantage of the current opportunity to consolidate and develop market share here. Since the beginning of the year, shrimp exports to the EU have recorded a good growth rate; EU shrimp import demand in the last months of this year is expected to continue to increase. Accumulated in the first 10 months of the year, shrimp exports to this market reached nearly US$482 million, up 10% over the same period in 2020. It is known that in order to recover the post-COVID-19 economy, the EU has activated many support packages, disbursing production recovery funds to rebuild commodity supply chains. In the last months of this year, the EU is very scarce for goods because many EU supply partners are struggling with the COVID-19 epidemic, plus the pressure of high sea freight rates while consumer demand in the last few months of the year is increased. This is an advantage for Vietnamese suppliers to the EU.
According to VASEP, consumers in many markets are continuing to favor deeply processed foods, which integrate many conveniences and are convenient in the fastest food processing. Deep processing is a competitive advantage of Vietnam’s shrimp industry, with many factories having modern equipment systems, ensuring high requirements for food safety and skilled workers. Therefore, when entering the segment of deep-processed shrimp products, Vietnam’s shrimp industry will avoid increasingly strong competition from India and Ecuador, two countries that have strengths in exporting raw shrimp or preliminary processing thanks to the abundant and cheap source of raw shrimp. Thus, the current market demand has also created certain conditions for Vietnam’s shrimp industry to continue to promote deep processing, thereby continuing to maintain its market share and market share in important markets.
In order to make good use of opportunities for shrimp exports at the end of the year, many businesses have made typical preparation steps such as Minh Phu Seafood Corporation Joint Stock Company and Sao Ta Seafood Joint Stock Company. Since mid-October, Minh Phu Seafood Joint Stock Company has been active again. Minh Phu has started a chain of 3 seafood processing factories, including Minh Phat, Minh Quy and Minh Phu with the same capacity of 18,000 tons/year and Quang Minh Packaging Factory with a capacity of 5,000 tons/year. Entering the fourth quarter of 2021, Minh Phu is said to continue to benefit from the increase in selling prices in the context that the demand for shrimp consumption at the end of the year continues to increase. The Group has received more than 3,200 employees inside and outside Hau Giang province back to work since mid-October; This will help Minh Phu increase productivity, meet customer orders, and be the driving force for growth during this period. As for Sao Ta, in 2021, the company has increased the farming area from 270 ha to 370 ha. Two new factories include Sao Ta Seafood Factory (capacity 15,000 tons/year); Tam An shrimp processing factory (capacity of 5,000 tons/year) is being deployed on schedule and is expected to operate from the second quarter of 2022, thereby increasing the total capacity by 20,000 tons/year, increasing about 70% of capacity. current force.
The COVID-19 epidemic is still complicated in some provinces in the Mekong Delta (a key shrimp production area of the country) from mid-October until now, but shrimp businesses are trying to maintain their stronghold, determined to not to disrupt the production chain. Along with that, investors expect shrimp businesses to have overcome difficulties to accelerate in the year-end business season.