Shrimp exports of Vietnam to the US increased by 33% in the first 7 months of the year

According to the Association of Seafood Exporters and Producers (VASEP) of Vietnam, in July, Vietnam's shrimp exports reached USD 388.5 million, an increase of 16.3% compared to July 2019. In the first 7 months of this year, shrimp exports reached USD 1.9 billion, up 7.7% over the same period last year.

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VASEP said this is a remarkable result in the context of the COVID-19 epidemic still continuing in major markets.

In the context of the COVID-19 epidemic, the need to import Vietnamese shrimp from major markets has not decreased.

The control of the disease COVID-19 by the Government of Vietnam is considered to be more effective than other countries, while many competitors with Vietnam still struggle with the disease, so customers from these countries turn to import shrimp of Vietnam.

Vietnam shrimp exports, the largest market, the US in July, still recorded positive growth and it is expected that Vietnam's shrimp exports to this market will still grow well in the coming months.

Exports to China in July remained positive, but the speed decreased compared to the previous month. Notably, Vietnam's shrimp exports to South Korea, UK, Canada, and Australia all grew double digits in July this year.

In the first seven months of this year, whiteleg shrimp accounted for 71% of Vietnam's total shrimp exports, black tiger shrimp accounted for 17.2%, and the rest was marine shrimp. The total value of whiteleg shrimp exports increased 12% while that of black tiger shrimp exports decreased by 14%.

Exports of processed whiteleg shrimp (HS code 16) and raw / fresh / frozen whiteleg shrimp (code HS 03) increased by 21% and 5%, respectively. Other processed tiger shrimp (HS16) exports increased 34% while that of raw / fresh / frozen black tiger shrimp (HS03) exports decreased 18%.

During the COVID-19 outbreak, the export of reasonably priced whiteleg shrimp increased better than tiger shrimp, and processed shrimp products were consumed more than fresh / raw / frozen products.

The US is the leading market for importing Vietnamese shrimp, accounting for nearly 22.8%. Vietnam shrimp exports to the US in July grew well at 45.3% compared to July 2019.

In the first 7 months of this year, shrimp exports to this market reached USD 435.2 million, up nearly 33% over the same period last year. Despite the COVID-19 translation, Vietnam's shrimp exports to the US remained positive in all months of the first 7 months of this year.

In the US market, in the first 7 months of this year, Vietnamese shrimp has a competitive advantage over rival sources thanks to faster production stability after COVID-19 while supplies such as India and Ecuador are still under a heavy impact.

Shrimp processors and exporters of India and Ecuador are not only affected by reduced orders but also delayed domestic production.

Indian shrimp exports to the US in May and June both fell sharply because production was disturbed by disease, supply chain was affected and freight activities were also congested.

Japan ranked second in shrimp imports of Vietnam, accounting for 17.2%. Vietnam's shrimp exports to Japan in the first 7 months of this year are not stable. In July, shrimp exports to Japan reached USD 51.5 million, down 7.8% compared to July 2019.

In the first seven months of this year, shrimp exports to this market reached $ 329.7 million, up 0.2% over the same period last year.

2020 is considered as the second year that Japan's economy has low economic growth. It is likely that Japan will not increase demand for seafood, including shrimp in 2020. Vietnam's shrimp exports to Japan in 2020 are expected to decrease by about 2% compared to 2019.

The EU ranks 4th in terms of shrimp imports from Vietnam. Vietnam's shrimp exports to the EU increased slightly by 2% in July to USD 54.2 million. In the first seven months of this year, shrimp exports to the EU reached USD 254.9 million, down 5.4% over the same period last year.

After continuous negative growth from March to June, Vietnam's shrimp exports to the EU in July tended to increase.

The EVFTA Agreement, effective from August 1, 2020, will be a lever to boost exports to the EU market in the last months of the year if enterprises have good raw materials and effectively take advantage of tariff preferences.

With positive signals in Vietnam's shrimp exports in the first 7 months of this year. Vietnam shrimp exports are expected to continue to grow in the coming months. For the whole year 2020, Vietnam's shrimp exports are expected to reach USD 3.6 billion, up 8% compared to 2019.

Phaata (Adapted from H.Mĩ /Economy & Consumption)