The Current State of Vietnam’s Shrimp Industry
The Vietnamese shrimp industry is currently confronting several significant challenges that are expected to persist until at least mid-2024. Key factors affecting the market include reductions in seafood export targets, declines in shrimp export turnover, and complex global market dynamics.
Adjustments in Export Targets and Turnover
The Ministry of Agriculture and Rural Development has revised its 2024 seafood export target to $9.5 billion, a reduction from the 2023 target of $10 billion. This decision reflects numerous challenges, including warnings from the European Commission, uncertain recovery in import demand, strong competition, high inventories, and inflationary pressures.
As of November 2023, Vietnam’s seafood export turnover was projected to be $8.27 billion, marking a 19% year-over-year decrease. Shrimp exports, in particular, have seen a 22% decline in the same period, primarily due to a global surplus and reduced selling prices.
US Market as a Beacon of Hope
Despite the challenges, the US market offers a ray of hope. In 2021, Vietnam’s shrimp exports to the US surpassed $1 billion for the first time, suggesting potential growth in this market.
Internal and Global Challenges
The Vietnamese shrimp sector is battling internal issues like disease outbreaks, high mortality rates, and rising feed costs, resulting in increased shrimp prices. Moreover, the global shrimp market is facing oversupply issues and weakened demand, adding further pressure.
Looking Forward: Strategies for Recovery
In response to these challenges, Vietnam is focusing on sustainable seafood economics, competitiveness enhancement, and export strengthening. There is also a push towards deep processing and innovation in shrimp products to boost market competitiveness and profitability.
The Vietnamese shrimp industry is navigating through a complex period marked by both internal and external challenges. However, with strategic adaptations and a focus on key markets like the US, there is potential for recovery and growth in the coming years.