Photo: VASEP/FIS

Vietnam's Seafood Exports Continue Recovery in August

VIET NAM
Tuesday, September 10, 2024, 07:00 (GMT + 9)

Vietnam's seafood exports continued their recovery in August 2024, growing by 20% to nearly USD 953 million. Over the first eight months of the year, seafood exports reached almost USD 6.3 billion, reflecting an increase of nearly 9% compared to the same period last year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Despite a 15% decline in the export turnover of squid and octopus in August, all other key products experienced strong double- and triple-digit growth. Shrimp exports rose by 30%, tra fish by 18%, tuna by 13%, and other marine fish by 12%.

By the end of August, shrimp exports had reached nearly USD 2.4 billion, up 9% from the same period last year. This included whiteleg shrimp, which accounted for about USD 1.75 billion (an 8% increase), while black tiger shrimp exports were still down 7%, totaling nearly USD 290 million. Lobster exports, however, continued to show strong growth, with export turnover for the first eight months up 140% compared to the same period in 2023.

Source: VASEP

Shrimp exports are showing positive trends despite challenges such as anti-subsidy and anti-dumping taxes. The Vietfish Seafood Exhibition in August may further boost exports, and a forecasted decrease in global shrimp production in 2024 could impact prices. With expected reductions in output from China, Ecuador, and India, global shrimp production is projected to decline by about 260,000 tons (a 5% decrease) to 4.89 million tons. Meanwhile, shrimp consumption is beginning to rise in Europe, and the U.S. market is also showing signs of recovery. Although shrimp import prices in China remain low, these trends are generally positive for the shrimp market.

Pangasius exports reached nearly USD 1.3 billion in the first eight months of the year, up 9% year-on-year. While exports to China remain stagnant, growth in the U.S. market is driving overall gains, with exports to the U.S. increasing by 23% year-on-year, even as exports to China fell by 3%. The U.S. continues to demand whitefish under its Department of Agriculture's bidding programs. On August 29, the USDA announced purchases of more seafood, including Pacific cod, grouper fillets, and catfish products, amounting to USD 6.5 million for 1.5 million pounds of catfish. This purchase was divided among five processors in the Gulf of Mexico region.

Tuna exports reached USD 652 million by the end of August, up 21% over the same period in 2023. However, maintaining this growth momentum may prove difficult in the coming months due to a shortage of raw materials. Since the implementation of Decree 37/2024, which mandates a minimum size for skipjack tuna at 0.5 meters, businesses have struggled to source sufficient domestic raw materials to produce canned tuna and other export products.

Squid and octopus exports have been significantly impacted by the EU's IUU yellow card. Challenges in certifying sustainable exploitation have created difficulties in obtaining sufficient raw materials and export documentation, resulting in a 2% decrease in exports, totaling USD 402 million by the end of August.

Overall, seafood exports to all markets are showing signs of recovery, with rising demand and gradually improving prices. However, significant challenges remain, including the IUU yellow card, anti-subsidy taxes, and anti-dumping measures. As a result, seafood exports are projected to reach between USD 9.4 and 9.5 billion by the end of 2024, representing an increase of nearly 6% compared to 2023.

The content is based on a report by Ms. Le Hang from VASEP, written in Vietnamese

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