Shrimp exports continue recovery in late 2024

Change in mindset: from volume and technology to sustainability and efficiency

VASEP notes that shrimp exports are showing promising signs across several markets, including stable growth in the US and EU. China’s policies to stimulate consumption could further increase its demand for Vietnamese shrimp.

Export shrimp prices, particularly for whiteleg shrimp, are on the rise, improving profit margins for businesses. Meanwhile, raw shrimp prices remain favorable, supporting production and exports. In November, the price of shrimp sized 50-60 pieces per kilogram increased by VND 5,000–9,000 per kilogram compared to the previous month, averaging VND 103,000 per kilogram.

While Vietnam’s shrimp export value has yet to surpass the record of USD 4.3 billion achieved in 2022, the sector is clearly recovering from 2023 when exports only reached USD 3.4 billion. Additionally, the strong development of processed shrimp products signals a positive trend as businesses shift toward higher-value items.

However, Vietnam’s shrimp industry still faces internal challenges that must be addressed to ensure sustainable growth.

Le Van Quang, Chairman of Minh Phu Seafood Corporation, remarked that the production cost of Vietnamese shrimp is too high, 30% higher than India and Indonesia, and double that of Ecuador, making it difficult for Vietnam to compete.

Shrimp certified by ASC/BAP can command 5–10% higher prices, while organic or ecological shrimp can fetch 10–20% more. Certified shrimp also gain access to major supermarkets, hotels, restaurants, and large distribution systems. Le Van Quang emphasized the need for a shift in mindset, moving away from focusing on production volume and high-tech farming to prioritizing sustainability and efficiency, particularly in terms of quality, environmental protection, health, and pricing.

Disease management and market trends for sustainable development

Phan Thanh Lam of the Research Institute for Aquaculture No. II highlighted the challenge of upgrading the shrimp value chain. The sector still lacks strong linkages in production and distribution, with most transactions occurring in the free market or through seasonal and quality-controlled agreements. Comprehensive and investment-focused cooperation remains rare.

Currently, small-scale shrimp farms (accounting for about 80% of farmed shrimp area) operate independently. Feed costs for semi-intensive and intensive whiteleg shrimp farming are high, accounting for 46–47% of production expenses. Using high-quality feed with better feed conversion rates can minimize waste and promote shrimp growth. Automated feeding systems and environmental management can further reduce labor costs and improve efficiency, enabling shrimp to grow faster and more uniformly.

In the context of integration, digital transformation, circular economy, green economy, and sustainable development, Tran Ngoc Hai from Can Tho University stressed the importance of evolving into professional, efficient shrimp farmers. Farmers need to adapt to trends in switching farmed species, high-tech shrimp farming, eco-friendly practices, climate resilience, and sustainability. Additionally, linking production to value chains aligned with international standards is critical to meeting market demands.

Tran Dinh Luan, Director-General of the Directorate of Fisheries under the Ministry of Agriculture and Rural Development (MARD), emphasized that Vietnamese shrimp must enhance quality and reduce costs to compete internationally. Key areas include broodstock quality control, seasonality, stocking density, disease management, production cost reduction, and market forecasting to elevate the export value chain and improve farmers’ incomes.

Diseases such as white spot syndrome, early mortality syndrome (EMS), and bacterial infections continue to severely impact productivity and quality. Disease management in shrimp farms remains inadequate, increasing the risk of outbreaks, particularly in the context of climate change. Farmers’ profits are low due to high production costs and recurring diseases.

Tran Dinh Luan noted that despite challenges related to the environment, diseases, and small-scale production, Vietnamese shrimp enterprises have made numerous innovations. From adopting technology to improving farming infrastructure, these efforts have enhanced environmental management, reduced emissions, extended the value chain, and increased benefits for both farmers and businesses.

VFM