Vietnams seafood exports expected to hit US$ 9.4 billion in 2021

In January 2021, Vietnam’s seafood exports reached 600 million USD, a year-on-year increase of nearly 20%, according to the Ministry of Agriculture and Rural Development.

Seafood exports were valued at 600 million USD in the first month of 2021. Photo: VNA

The US, Japan, China, and the Republic of Korea are the four leading import markets of Vietnam’s seafood, Communist Party of Vietnam Online Newspaper reported.

Statistics of the General Department of Customs showed that during the Lunar New Year (Tet holiday), Vietnam’s commodities were exported to 80 markets, an increase of 7% compared to last Tet.

Specifically, the Chinese market held the largest share with 26% of the total export value, at 189 million USD. It was followed by the US with 152 million USD (21%), the Republic of Korea with 67 million USD (19%), and Hong Kong (China) with 57 million USD (8%).

During the 7 days of the Lunar New Year from February 10 to 16, Vietnamese businesses imported commodities from 57 countries and territories. Specifically, imports from the Republic of Korea made up the biggest value at 355 million USD (38%), China had 159 million USD (17%) and the US had 88 million USD (9%).

According to the Vietnam Association of Seafood Producers and Exporters (VASEP), Vietnam’s aquatic product exports are expected to rake in 9.4 billion USD this year, a year-on-year increase of 10%.

This is driven by a strong rebound in demand for export markets and the support of free trade agreements.

Analysts of FPT Securities JSC (FPTS) predicted Vietnam would continue increasing shrimp output in 2021, reaching 730,000 tonnes, up 4% year-on-year.

Stable supply will be an advantage for Vietnamese shrimp exporters to expand their market shares in export markets.

The prices of exported shrimps are also forecast to rise slightly by 5 percent to an average of 9.6 USD per kg, according to an FPTS report.

Meanwhile, experts from BIDV Securities Company said that it is difficult for Vietnam’s shrimp sector to enjoy high export growth in 2021, as the production of competitive countries such as India and Ecuador begins strong recovery, especially when the two countries’ shrimp prices are 10-15 percent lower than that of Vietnam.

However, the shipment of shrimps to the EU, which accounts for 21 percent of Vietnam’s total shrimp export turnover, is expected to be supported by the EU-Vietnam Free Trade Agreement (EVFTA).

The tariffs imposed on frozen shrimps were slashed to zero percent immediately after the EVFTA became effective on August 1, 2020, while those on processed shrimps will reduce to zero percent from January 1, 2027, said Vietnamplus.

The output of Vietnam’s Tra fish is also forecast to maintain uptrend this year.

Vietnamese businesses’ efforts to focus on value-added processed products that meet all requirements on food safety and origin traceability of products will be paid off, with the export value of processed Tra fish to surge in 2021.

Vietnamese seafood exports fell sharply by 10 percent and 7 percent in the first quarter and second quarter of last year respectively, but from the third quarter began to recover.

The country's seafood output was estimated at 8.4 million tonnes by the end of last year, a slight increase of 3 percent compared to 2019.

Seafood exports hit $8.4 billion, down 1.9 percent year-on-year.