Shrimp exports a bright spot during the pandemic

Vietnam’s shrimp exports to the US market reached US$435.2 million, up nearly 33% over the same period last year. The US market is expected to pull Vietnamese shrimp to export positively this year.

Processing shrimp for export at Sao Ta Company

According to the Vietnam Association of Seafood Exporters and Producers, in July 2020, Vietnam's shrimp exports reachedUS$388.5 million, an increase of 16.3% compared to July 2019. In the first seven months of 2020, shrimp exports reachedUS$1.9 billion, up 7.7% over the same period last year. This is a remarkable result while the Covid-19 pandemic is still continuing in main markets.

In the context of Covid-19, the demand for importing Vietnamese shrimp from major markets has not decreased. The control of the Covid-19 pandemic by the Government is more effective than other countries, while many competitors with Vietnam still struggle with the pandemic, so customers from these countries turn to import Vietnam’s shrimp.

The largest market of Vietnam’s shrimp exports is the US. In July, it still recorded positive growth and it is expected that Vietnam's shrimp exports to US will still grow well in the coming months. Exports to China remained positive but the speed decreased compared to the previous month. Notably, Vietnam's shrimp exports to South Korea, UK, Canada, and Australia all grewin double digits in July.

Currently, the US is still the leading market for importing Vietnamese shrimp, accounting for nearly 22.8%. Vietnam's shrimp exports to the US in July grew well with 45.3% compared to July 2019. In the first seven months of this year, shrimp exports to US reached US$435.2 million, up nearly 33% over the same period last year. Despite the Covid-19 pandemic, Vietnam's shrimp exports to the US remained positive in all months of 2020.

In the US market, Vietnamese shrimp has a competitive advantage over rival supplies thanks to faster stabilization of production after COVID-19 while supplies such as India and Ecuador are still being affected. Shrimp processors and exporters of India and Ecuador are not only affected by decreased orders but also delayed domestic production. Indian shrimp exports to the US in May and June fell sharply because production activities were disturbed by the pandemic, supply chains were affected, and freight activities were also congested.

The Japanese market ranked second in importing shrimp of Vietnam, accounting for 17.2%. Vietnam's shrimp exports to Japan in the first seven months of 2020 were not stable. In July 2020, shrimp exports to Japan reached US$51.5 million, down 7.8% compared to July 2019. In the first seven months of 2020, shrimp exports to Japan reached US$329.7 million, up 0.2% over the same period last year.

2020 is considered 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.

With the EU market, Vietnam’s shrimp exports to the EU increased slightly by 2% in July 2020 to reach US$ 54.2 million. In the first seven months of 2020, shrimp exports to the EU reached US$254.9 million, down 5.4% over the same period last year. After negative growth from March to June, Vietnam's shrimp exports to the EU in July tended to increase.

The EVFTA, which took effect from August 1, 2020, will be a lever to boost exports to the EU market in the last months of 2020 if businesses have good raw materials and effectively take advantage of tax incentives.

With positive signals so far, Vietnam’s shrimp exports are expected to continue to grow in the coming months. For the whole year of 2020, Vietnam's shrimp export is expected to reach US$3.6 billion, up 8% compared to 2019.