Shrimp exports recover well at the end of the year

Despite having to fight the pandemic for safe production, Vietnam's shrimp exporters have made efforts to expand their markets, taking advantage of their export advantages to markets in CPTPP countries.

Production of shrimp for export at Sao Ta Company. Photo: Internet

According to the Vietnam Association of Seafood Exporters and Producers, the CPTPP is the second largest market for Vietnam's shrimp imports after the US, accounting for 25% of Vietnam's total shrimp export value.

As of November this year, Vietnam's shrimp exports to the CPTPP markets were estimated at US$905.2 million, down 0.2% over the same period last year. Vietnam's shrimp exports to the main markets in the CPTPP bloc tend to recover in the year-end period.

CPTPP is an important export market for Vietnamese shrimp enterprises with many advantages after the CPTPP is implemented. This year, among the top four largest single import markets in the bloc, shrimp exports to Japan recovered slowly while shrimp exports to Canada, Australia and Singapore tended to recover well. Canada, Australia, and Singapore are considered to be areas that have controlled the Covid-19 pandemic, so the demand for imported goods here is not affected.

Japan is the largest importer of Vietnamese shrimp in the CPTPP. As of November this year, Vietnam's shrimp exports to Japan were estimated at US$534.5 million, down 4.2% over the same period last year. Exports to Japan this year are not stable – increasing from March to July while decreasing from August to November. The unstable economic growth in Japan added to the negative impact of the Covid-19 wave, restaurants limited their operations, reducing people's consumption demand.

Canada is the second largest shrimp import market of Vietnam in the CPTPP. As of November this year, Vietnam's shrimp exports to Canada were estimated at US$166.5 million, down 3.6% over the same period last year. This year, shrimp exports to Canada, after decreasing in August and September, recovered again in October and November. Canada is a country with high income, the trend of importing warm water shrimp from Asia of this market increases, there are still many opportunities for Vietnamese shrimp exports to this market.

Vietnam's shrimp exports to Australia were estimated at over $164 million as of November this year, up 23.4% over the same period last year. Since the beginning of the year to July, shrimp exports to Australia grew strongly. After that, it decreased in three months of August, September, October and then recovered again in November. Vietnam is currently the top supplier of Australian shrimp. This is a potential market for Vietnamese shrimp.

In the first three quarters of this year, Vietnam's shrimp exports to Singapore were not stable, but there were signs of recovery in October and November.

According to businesses, thanks to the free trade agreements that the Government signed, many shrimp products are exempt from taxes when exported to most major markets, including the CPTPP that increases business competitiveness.

The demand for shrimp imports from the CPTPP market this year is quite good. Currently, businesses are focusing on controlling the Covid-19 pandemic to stabilize production.

According to Mr. Ho Quoc Luc, Chairman of the Board of Directors of Sao Ta Food Joint Stock Company, the pandemic is causing businesses to struggle, many businesses have to reduce workers, such as those in An Nghiep Industrial Park, Soc Trang province. Since the beginning of October, it has reduced over 4,000 employees.

According to Mr. Ho Quoc Luc, before this development, the assessment of the current situation of the industry will help managers and businesses have more appropriate and flexible response strategies.

However, the situation is changing rapidly due to the impact of the pandemic, so updating information, judgments and trends is what every business is interested in, in order to minimize risks in operations, and take advantage of speeding up exports in the last month of 2021 and the beginning of 2022.