Potential of exporting shrimp to the US

Despite the Covid-19 pandemic, Vietnam's shrimp exports to the US grew positively in the first five months of 2020.

Shrimp processed for export.

In May 2020, Vietnam's shrimp exports reached US$330.2 million, up 0.6% compared to May 2019. Accumulated in the first five months of this year, shrimp exports achieve US$1.2 billion, increasing by 2.3% compared with the same period last year.

According to the Association of Seafood Exporters and Producers, although the shrimp export results in the first five months of this year have not increased much, it is encouraging in the context of the ongoing Covid-19 pandemic. Notably, shrimp exports to the US and China recorded positive growth and it is expected that Vietnam's shrimp exports to these markets will still grow well in the coming months.

In the first five months of this year, white leg shrimp accounted for 69.5% of Vietnam's total shrimp exports, giant tiger shrimp accounted for 19.2%, the rest were marine shrimp.

In May 2020, among the top six major shrimp importing markets of Vietnam, shrimp exports to Japan, the EU and South Korea decreased while exports to the US, China and the UK increased. Japan is still the largest shrimp importing market of Vietnam, accounting for 19.2%.

In May 2020, shrimp exports to Japan decreased by 19.5%; however, thanks to growth in the previous months, shrimp exports to this market in the first five months reached US$225.6 million, up 3.2% compared with the same period last year.

For the EU market in May, shrimp export turnover decreased by 5%. However, exports to two single markets in the area, the Netherlands and Germany, have grown well, at 18.5% and 14.5% respectively. Accumulated in the first five months of this year, exports to EU wereUS$162.2 million, decreasing by 7% compared with the same period last year.

Vietnam's shrimp exports to the US recorded good growth in May 2020 with US$65.8 million, up 29.5% compared to May 2019. In the first five months of 2020, shrimp exports to the US reachedUS$224.5 million, up 20.4% over the same period in 2019. Despite the Covid-19 pandemic, Vietnam's shrimp exports to the US still grew positively in the first five months of 2020.

In the US market, in the first five months of this year, Vietnam's shrimp hada competitive advantage over competitors' supplies thanks to stable production after COVID-19, while suppliers such as India and Ecuador were still suffering. Shrimp processors and exporters of India and Ecuador are affected not only by reduced orders but also by domestic production activities stalled by blockades, and a lack of workers in factories because they do not work due to the fear of being infected.

After falling in the first three months, Vietnam's shrimp exports to China recovered again in April and May. Shrimp exports to China in May 2020 reached US$60.3 million, up 3.9% compared to May 2019.

Accumulated in the first five months, shrimp exports to this market reached more than US$169 million, decreasing by 9.5% compared with the same period last year.

Vietnam's shrimp prices are expected to improve in the first quarter of this year because inventories in major markets such as Japan, the US and the EU are not as high as in previous months.

Material supply in China is forecast to decrease due to the influence of DIV1 virus. In India, the blockade lasted until May, causing aquaculturists to hesitate inraising shrimp, disturbing the supply chain. The Covid-19 pandemic also affected the supply of raw shrimp in Ecuador, Indonesia and Thailand. In Vietnam, aquaculturists are still actively raising, so enterprises do not have to worry about the lack of raw materials. Vietnam's shrimp exports are expected to increase in the coming months.