Photo: VASEP/FIS

14% growth in July 2024, Vietnamese seafood exports are more prosperous

VIET NAM
Wednesday, August 07, 2024, 01:10 (GMT + 9)

It is estimated that seafood exports in July 2024 will reach over 885 million USD, an increase of 14% over the same period in 2023. This is the highest growth rate in the past 6 months, and also the month with the highest export turnover since the beginning of the year. In the first 7 months of the year, Vietnam's seafood exports reached 5.28 billion USD, an increase of 7% over the same period in 2023.

In July, exports of all key products showed better growth. Of which, shrimp exports increased by 11%, also the highest growth rate in the first 7 months of the year. Of which, shrimp exports to China and the EU increased by 24% and 32% respectively, while exports to the US increased by 9%, to Japan by 4%, and to South Korea by 21%.

By the end of July 2024, cumulative shrimp exports reached nearly 2 billion USD, up 7% over the same period last year. Of which, white-leg shrimp reached 1.45 billion USD, up 4%, black tiger shrimp reached 246 million USD, down 10%. Lobster exports alone increased nearly 3 times to 145 million USD.

Pangasius exports showed brighter signs with an increase of 23% in July. Of which, exports to all major markets grew by double digits, from 20-40%, except for the EU market, which increased slightly by 5%. In the first 7 months of the year, pangasius exports reached nearly 1.09 billion USD, an increase of 7.7% over the same period last year. China is still the number 1 target market for Vietnamese pangasius, with a value of 317 million USD, down 2.3% over the same period in 2023. This market mainly consumes large-sized pangasius >1.2 kg/fish in whole form or fillet products. In addition, this is also a potential market for by-products such as pangasius bladders. In the first 7 months of this year, pangasius bladder exports nationwide reached about 50 million USD, of which exports to the Chinese market alone reached 40 million USD, accounting for 80%.

After continuous double-digit growth of 16-32%, tuna exports in July slowed down, increasing only 9% over the same period last year. In the first 7 months of the year, tuna exports reached 555 million USD, up 21% over the same period last year. Of which, the 2 main export product lines are canned tuna, bagged tuna and frozen tuna loin/fillet (also raw materials for canned fish production). Since Decree 37/2024 took effect (from May 19, 2024), tuna processing and exporting enterprises have fallen into a "tired" situation because they cannot buy canned tuna raw materials according to the new regulations requiring exploited skipjack tuna to have a minimum size of 0.5m. The Vietnam Association of Seafood Exporters and Producers (VASEP) has sent a dispatch to Prime Minister Pham Minh Chinh, Deputy Prime Minister Tran Luu Quang, and Minister of Agriculture and Rural Development reporting on the proposal to amend Decree 37 to be consistent with international practices and reality, including the content related to the regulation on minimum size of skipjack tuna. At the same time, VASEP also sent a dispatch to member enterprises requesting compliance with IUU regulations and regulations in Decree 37 while waiting for the Government to review and amend.

Photo: VASEP

In the past 2 months since Decree 37 took effect, a number of tuna businesses have completely stopped purchasing domestically exploited skipjack tuna from fishermen because they cannot guarantee 100% of the size to be 0.5 meters or larger. Most fishing ports have also stopped certifying raw materials (S/C papers) for skipjack tuna shipments because the size of the exploited fish is smaller than the regulations of Decree 37. Meanwhile, this period is the 3 peak "season" months (July, August, September) for skipjack tuna exploitation by Vietnamese fishermen.

In addition to tuna, other seafood products such as squid, octopus and other marine fish are also lacking raw materials for export, and have not been certified for raw materials for export to the EU. Exports of other marine fish (except tuna) also decreased by more than 4% in the first 7 months of this year. Meanwhile, squid and octopus exports were only equivalent to the same period in 2023, reaching about 351 million USD .

Photo: VASEP

The top 4 main markets showing clear signs of demand recovery in July include: China & HK up 30%, the US up 14%, Japan up 11% and the EU up 14%. In the first 7 months of the year, seafood exports to the US and China - HK both increased by 10% and accounted for an equal proportion, accounting for nearly 18% of Vietnam's total seafood exports, reaching over 930 million USD. Exports to the EU also increased by 10% to over 600 million USD. Exports to South Korea alone increased slightly by 1% to 426 million USD.

In terms of the frozen product segment, the US and EU will be the two expected markets in the second half of the year, with positive signals such as economic recovery, lower inflation, and lower interest rates likely to stimulate demand in these markets. Meanwhile, frozen product exports to China have not yet made a breakthrough with relatively low prices. In return, China is the number 1 destination for the fresh and live seafood segment serving restaurants, hotels, and tourism. Therefore, fresh products such as lobster, crab, clam, snail, etc. from Vietnam will continue to attract Chinese customers in the coming time. 

Author/Source: Le Hang/VASEP (translated from original in Vietnamese)

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