Japan becomes Vietnams leading import market for shrimp

Accounting for 21% of Vietnam’s total shrimp export value, Japan became Vietnam's largest import market for shrimp in the first quarter of this year.

Shrimp processed for export. Photo: Nguyen Thanh

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam's shrimp exports in the first three months of 2020 reached US$628.6 million, a slight increase of 1.8% compared to the same period in 2019.

Of which, Japan accounted for 21% of Vietnam’s total shrimp export value and becameVietnam’s largest import market for shrimp in the first quarter thanks to the strong growth of shrimp imports from Vietnam in February 2020, with a growth of 63% over the same period in 2019. In the first quarter of this year, Vietnam's shrimp exports to Japan reached nearly US$132 million, up 8.4% compared to the first quarter of 2019.

The highlight is that shrimp exports to the US market in the first three months of this year recorded the most positive growth among the major import markets. In the context of export disruption in many markets due to the impact of the Covid-19 pandemic, this is an encouraging growth for Vietnam shrimp exporting enterprises.

The US ranked second in shrimp imports from Vietnam. In March this year, Vietnam's shrimp exports to the US reached US$41.3 million, up 11.5% over the same period last year. In the first three months of this year, Vietnam's shrimp exports to this market reached US$115.5 million, up 18.2% compared to the same period in 2019. This is the best growth in the top Vietnam’s five major import markets for shrimp.

The Covid-19 pandemic spread widely in the US from March 2020, delaying the import of goods including shrimp into this market. Import demand also dropped due to a sharp decline in consumption in the food service segment due to US government disease control measures. However, the demand for shrimp in the retail segment still increased to meet the essential needs of people. VASEP recommended that enterprises exporting to the US market should focus on deep-processed and value-added products such as easily peeled shrimp to match the consumption needs of this segment.

Vietnam's shrimp exports to the EU, Korea and China in March this year still decreased by 16%, 6.3% and 6.4%, respectively,compared to March last year due to the impact of the Covid-19 pandemic.

While the disease worldwide has not been controlled and there are not many positive signs, both farmers and exporters are still trying to surmount difficulties.

Currently, countries such as the EU, Australia, and South Korea all apply measures of blockades or travel restrictions, affecting the delivery.Accordingly, the price of raw shrimp tended to decrease in the first quarter of this year.

According to VASEP, the pandemic situation is also unpredictable. However, shrimp is an essential food with a reasonable price, so the demand for it will still be available in the world and in the country in the near future.

In addition, Covid-19 prevention in China and South Korea is getting better and there will be more hope for farmers and processing factories when difficulties in exporting markets are partly removed.

When major producers such as India and Ecuador are facing difficulties in productivity due to the pandemic and weather, Vietnam needs to ensure the supply of raw materials and production to catch opportunities when the pandemic is controlled. The main shrimp importers are providing stimulus packages, the demand for shrimp will increase and it is hoped that the price will increase.