In June 2024, Vietnam's shrimp exports recorded positive growth compared to the same period last year and increased higher than the previous month. Shrimp export value this month reached 344 million USD, up 5% over the same period in 2023. Accumulated in the first 6 months of the year, export value reached nearly 1.6 billion USD, up 6%.

In the first half of this year, shrimp exports to China & HK reached 328 million USD, up 17% over the same period last year. Shrimp exports to this market, after decreasing in May, increased again in June.

In the following months until the end of the year, Ecuador, India and Indonesia will focus more on the Chinese market due to high tariffs imposed by the US; Therefore, Vietnamese shrimp exported to China will be under price pressure, especially whole black tiger shrimp and whole tiger shrimp...

In the first half of this year, shrimp exports to the US reached 303 million USD, up 1% over the same period last year. After decreasing in May, shrimp exports to the US increased again in June.

In this market, inflation is still high. In addition, shipping rates increased dramatically by 40% from May due to the war in the Middle East and China collecting empty containers to reserve goods for export to the US before the new tax period. Vietnamese shrimp also has to compete strongly in price with Ecuadorian, Indian, and Indonesian shrimp in the US market.

Demand for importing Vietnamese shrimp from the US may increase slightly in the third quarter of this year when importers increase purchases to serve the needs of year-end festivals.

In the first 6 months of this year, shrimp exports to Japan and Korea still recorded a slight decrease compared to the same period last year, reaching 229 million USD and 149 million USD, respectively, down 3% and 10% over the same period.

Vietnam's value-added goods in the Japanese market still retain a better competitive advantage compared to other suppliers such as India and Ecuador.

Import demand of the Japanese and Korean markets is expected to increase slightly from September to serve year-end demand.

For the EU market, after the first quarter, shrimp exports to this market grew well. In June, shrimp exports to this market reached 52 million USD, an increase of 31%. Cumulatively in the first 6 months of the year, exports to the EU market reached 217 million USD, an increase of 13%. In the coming months, the EU market's demand for shrimp imports is expected to continue to increase.

The shrimp industry is facing two big problems: the price of shrimp exported to other markets is low due to competition with Ecuadorian and Indian shrimp. Another problem is that disease outbreaks in farmed shrimp are complicated and have not been resolved, potentially causing a shortage of shrimp raw materials in the second half of 2024.

According to market rules, from the third quarter onwards, importers increase purchases to prepare supplies for year-end holidays and New Year. Therefore, shrimp prices from the third quarter onwards are likely to improve better than currently, but are also unlikely to increase sharply.

Farmers need to consider and choose appropriate farming models and densities to both ensure a high success rate to reduce production costs and harvest large-sized shrimp with more stable prices.

Facing many difficulties, shrimp exporters always proactively have their own strategies. For example, although the US market has large consumption power, Vietnamese shrimp is at a disadvantage in competing with cheap shrimp from Ecuador and India, and recently transportation costs have increased sharply. Therefore, most enterprises have reduced the proportion of exports to this market; Focusing on markets such as: Japan, Korea, Australia, China... Some businesses are proactive in farming activities, proposing solutions for raising and harvesting, to sell at better prices.

In the second half of the year, it is expected that the main import markets will have better signals, inventory problems and transportation difficulties will ease, demand will recover and prices will increase again. If all expectations follow a scenario that is beneficial for shrimp, everything will change for the better, ensuring the shrimp industry's goal of reaching the finish line in 2024.

Source: VASEP