Huge opportunities for shrimp exports in the last months of the year

According to Nguyen Hoai Nam, Deputy Secretary General of Vietnam Association of Seafood Exporters and Producers (VASEP), due to the Covid-19, the distribution chain of exported shrimp products has changed . The market sees that the higher demand for small-sized vannamei shrimp for retail market and at-home consumption has grown significantly compare to previous years.

The proportion of black tiger shrimp tends to decrease, some marine shrimp items account for a small proportion but are still popular especially in Asian market.

According to VASEP, in 2021 raw shrimp production is expected to reach 1 million tons of which 700,000 tons are for exports and 300,000 tons are for the domestic market. Shrimp export turnover is likely to surpass US$4 billion, an increase of 15% compared to 2020.

In which, the North American market will be stable at more than US$1 billion, the EU market is expected to recover at US$700 million;  the UK market is likely to reach US$400 million thanks to the signed UKVFTA, the Japanese market is forecasted to not exceed US$700 million. China’s shrimp consumption is likely to rise and valued at more than US$ 600 million and the South Korean market will see a slight rise at US$400 million.

In the first five months of 2021 alone, Vietnam’s seafood export value reached US$2.08 billion ( up 9.8% compared to the same period of 2020). In which shrimp export value reached above US$800 million (an increase of 9.1% compared to the same period last year).

In the last months of 2021, opportunities for Vietnam’s shrimp export are huge. Shrimp exports are forecasted to grow strongly thanks to the signed free trade agreements, ensuring stability in commercial shrimp farming and processing as the Covid-19 is well-controlled in the country.

The development of the domestic market will be a drive for boosting raw shrimp production for processing and domestic consumption.

Global demand for shrimp will boost shrimp imports, especially in the markets like Europe, the US, Japan, China and South Korea. While the supply from the producing countries such as India and other suppliers will decrease due to the impact of the Covid-19. Vietnam’s shrimp industry continues to see positive prospects thanks to preferential tariffs under the new generation free trade agreements, especially CPTPP and EVFTA.