Great expectations for Vietnam's shrimp exports to the Chinese market

Shrimp exports from Vietnam to China fell drastically in the first half of 2023, mirroring declines in exports to other key export destinations. By the end of June 2023, Vietnam's shrimp exports to China and Hong Kong have reached approximately 281 million USD, which is a decrease of 15.7% over the same period in 2022.

According to Mr. Luong Van Tai, 3rd Secretary of the Vietnamese Embassy in China, after China lifted its Zero Covid policy, many of the world's leading shrimp exporting countries such as Ecuador and India have increased their exports to China in response to the consumption difficulties in other markets. Additionally, Vietnamese shrimp has a higher price range compared to products from Ecuador and India. Consequently, Vietnam's shrimp exports to the Chinese market dropped significantly in the first six months of 2023. 

Despite the sharp drop in the first half of the year, Vietnam's shrimp exports to China increased steadily on a month-to-month basis. Furthermore, the rate of decline also decelerated over the months. Namely, Vietnam's shrimp exports to China recorded a decrease of 40% in March, a decrease of 22% in April, and a decrease of 11% in May.

According to Mr. Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam's shrimp exports to the Chinese market recorded positive growth in June 2023 at 59 million USD, which is an increase of 19% compared to June 2022. This is the first month of 2023 that Vietnam's shrimp exports to China have grown compared to the same period in 2022.

In addition to the US market, VASEP believes that the Chinese market, with its growing demand for shrimp exports, represents the best hope for the Vietnamese shrimp industry in the second half of 2023. Additionally, the Chinese market has excellent potential for Vietnam's exports thanks to a rising trend of seafood consumption, notably shrimp, among Chinese people. On the other hand, China's domestic shrimp production has decreased due to high farming costs and low shrimp prices.

According to the General Administration of Customs of China, the country's shrimp imports rose to over 100,000 tons in May 2023, which is a drastic increase of 77% in volume compared to the same period in 2022. The import value also increased by 55% to reach 579 million USD. The amount of shrimp imported into China reached 415,000 tons within the past five months, which is an increase of 48%. In addition, the import turnover reached 2.3 billion USD, which is an increase of 28%.

Mr. Truong Dinh Hoe reported that Ecuador boosted its shrimp exports to China during the first half of 2023 due to concerns over the failing prices of shrimp. There is currently a shortage of shrimp in Ecuador as its harvest season has finished. As a result, the export of shrimp from Vietnam as well as other countries around the world will have the opportunity to recover strongly within the next few months. Accordingly, VASEP will focus on marketing and promoting Vietnamese shrimp products in the Chinese market in the immediate future.

The Directorate of Fisheries under the Ministry of Agriculture and Rural Development of Vietnam projected that the demand for shrimp exports from Vietnam to China will increase from August to the end of the year in anticipation of the Mid-Autumn Festival, National Independence Day and year-end festivals in China.

With noticeable signs of recovery in the global market for shrimp, the prices of black tiger shrimp and vannamei shrimp in the Mekong Delta have increased slightly in the last few days.

Mr. Nguyen Van Hung, a farmer in Thanh Phu Long commune, Chau Thanh district, Long An province, reported the price of shrimp has increased by 1,000 to 2,000 VND per kg depending on the size. Whiteleg shrimp is currently priced at 175,000 VND/kg for 20 shrimps per kg, 118,000 VND/kg for 30 shrimps per kg, 102,000 VND/kg for 40 shrimps per kg, etc. Shrimp prices are steadily increasing despite being much lower than they were in July 2022, which is a positive outlook for shrimp farmers in Long An province after a brief period of heavy losses in recent months.