China imported nearly 1.4 billion USD of Vietnamese seafood in the first half of the year, up 40% compared to the same period, surpassing the US to become the sector's largest export market.

According to the Ministry of Agriculture and Rural Development, seafood exports in the first 6 months of the year reached more than 5.7 billion USD, up 11.4% compared to the same period last year. Within this, China imported nearly 1.4 billion USD of Vietnamese seafood, up around 40% compared to the same period, surpassing the US with nearly 898 million USD. If counting Hong Kong as well, the export turnover to this region reached around 1.5 billion USD, an increase of nearly 38%. Japan stood third with nearly 788 million USD, a slight increase compared to the same period last year.

A representative of Nam Viet Joint Stock Company stated that the shifting trend toward China has manifested more clearly since the beginning of the year. In Q1, the enterprise faced a shortage of raw materials, but entering Q2, both raw material prices and selling prices decreased. Against a backdrop where transportation costs to distant markets remain high, China becomes a more attractive choice thanks to close geographical distance, low logistics freights, and fast capital recovery times.

This evaluation was also shared by Ms. Le Hang, Deputy General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP). According to her, when the US and Europe intensify trade barriers, many enterprises have proactively redirected toward China. Apart from import requirements not being too strict, this market also holds a massive advantage in geographical distance, helping reduce logistics costs and shipping times. For live fresh seafood items, enterprises can export through land border gates, so preservation is also more favorable and cost-effective.

Meanwhile, exports to the US continue to bear multiple pressures. According to Ms. Hang, this country has tightened regulations against wild-caught seafood under the Marine Mammal Protection Act (MMPA), forcing enterprises to supplement COA certificates with complicated application processes, particularly affecting the tuna commodity. Shrimp also continues to bear high anti-dumping duties.

In addition, the volume of goods accelerated to the US prior to the application timing of new tariff policies drove up inventories, while consumers in this country tend to tighten spending and prioritize low-priced products. These factors made the export turnover to the US in the first 6 months of the year virtually go flat.

According to VASEP, export growth in the first half of the year does not merely originate from recovering market demands but also reflects the adaptability of enterprises in adjusting markets and product structures. Against a backdrop where importers become increasingly cautious, orders tend to be shorter and broken down more, demanding more competitive prices as well as tightening standards on quality, certification, and traceability. This forces enterprises to be more flexible in production and market selection.

Shrimp continues to serve as the sector's largest export item with a turnover of around 2.3 billion USD in the first 6 months of the year, up 13.6% and occupying more than 40% of the total seafood export value. The growth driver primarily comes from mainland China and Hong Kong. Within this, lobster is the item heavily purchased by both of these markets. Meanwhile, pangasius reached around 1.1 billion USD, up 12.1%, continuing to promote its advantage thanks to competitive prices and stable demand for the whitefish group in multiple markets.

Even so, the export outlook for the second half of the year still contains plenty of uncertainties. Ms. Le Hang stated that enterprises continue to face the risk of the US applying additional protectionist measures and new trade barriers, extending from regulations related to forced labor to the possibility of applying quotas on a number of items. Combined with the fact that refrigerated container shipping freights tend to rise again, these will serve as major challenges for the seafood sector in the final months of the year.

According to her, against a backdrop of rapidly changing trade policies, enterprises possess no other option but to continuously update market information, proactively adjust export plans, diversify markets, and elevate the proportion of deeply processed products to reduce risks and maintain growth.

Source: VnExpress