China's regulations on ornate spiny lobsters are exerting massive pressure on a nearly 1 billion USD export sector, but they also open up an opportunity to restructure the industry toward a more sustainable and proactive direction.

The market of billions tightens requirements on ornate spiny lobsters

In the seafood export picture of 2026, China continues to be Vietnam's fastest-growing market. According to the latest figures from the Ministry of Agriculture and Rural Development, during the first 4 months of 2026, seafood exports to China surged by 48.5% year-on-year, the highest growth rate among the top 15 key export markets.

Data from Shrimp Insights shows that in April 2026 alone, China imported approximately 93,000 tons of shrimp, up over 30% compared to the same period last year. Cumulatively for the first 4 months of the year, the import volume reached over 343,000 tons, with a value of nearly 1.8 billion USD. Notably, consumer demand in the Chinese market is expanding not only in the mass shrimp segment but also in premium seafood products. This presents a major opportunity for the Vietnamese lobster industry, particularly ornate spiny lobsters—the product with the highest economic value in the farmed lobster group.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), in 2025, lobster export turnover reached approximately 858 million USD, a spike of over 200% compared to the previous year. Within this, the Chinese market accounted for up to 845 million USD, equivalent to almost the entire export value of the commodity sector.

Robust consumer demand has helped Vietnam become the largest lobster supplier to China, with an output of over 24,000 tons, capturing about one-third of the market share. Regarding ornate spiny lobsters specifically, although their output is not as large as green lobsters, they bring in high value thanks to their large size, excellent meat quality, and premium selling prices.

However, since May 2023, China amended its Wildlife Protection Law and included the ornate spiny lobster in the list of Grade II protected animals. Under the new regulations, imported ornate spiny lobsters must prove their origin from F2 generation artificial breeding and must not use seed harvested from the wild. This requirement is posing a major challenge to the Vietnamese lobster industry. This is because currently, the production of artificial ornate spiny lobster seed up to the F2 generation has not yet been commercialized on a global scale.

At a meeting to discuss solutions to remove bottlenecks for ornate spiny lobster exports, Mr. Ngo Hong Phong, Director of the Department of Quality, Processing, and Market Development (Ministry of Agriculture and Rural Development), argued that it is necessary to continue discussions with the Chinese side to clarify the scientific basis as well as the alignment of this requirement with international trade practices.

According to Mr. Nhu Van Can, Deputy Director of the Department of Fisheries and Fisheries Surveillance, currently only Australia has announced a number of research results on the artificial reproduction of ornate spiny lobsters, but it remains primarily at a research scale. Therefore, the application of the F2 seed source requirement in international trade needs to be discussed more thoroughly between the specialized agencies of the two nations.

The CITES Management Authority of Vietnam also stated that ornate spiny lobsters are currently not included in the appendices of the CITES Convention. Certifying the origin of commercial products from artificial F2 seed is not yet a widespread practice in international trade.

Specialized units all concurred that lobster consumer demand in China remains very large and its domestic supply does not adequately meet needs. Therefore, the focus at present is to clarify the origin-verification mechanism and related technical requirements to ensure that trade activities are maintained stably.

Reducing reliance on a single market, heading toward sustainable development

Aside from immediate difficulties, many experts argue that this is also the time for the lobster industry to look back at constraints that have existed for many years, especially the over-reliance on a single export market. Reality indicates that when almost the entire lobster export turnover depends on China, any change in import policy can heavily impact farmers, enterprises, and the entire sector value chain.

Mr. Vo Van Hung, Deputy Minister of Agriculture and Rural Development, emphasized that the current challenge should be viewed as an opportunity to comprehensively evaluate the development potential of the Vietnamese lobster industry, from farming capacity and research capabilities to long-term development orientations. According to the Deputy Minister, seed research and production remain a weak link in the Vietnamese seafood sector. In the coming time, the Ministry will continue to promote scientific research programs, particularly lobster seed production technology, while encouraging enterprises to participate in research investment via socialization to create a sustainable foundation for the commodity sector.

Along with that, the requirement to diversify export markets is becoming more urgent than ever. In addition to China, the lobster industry needs to expand its access to high-value markets such as Japan, South Korea, the United States, and the European Union by upgrading quality standards, investing in preservation technology, and developing deeply processed products. Another vital mission is to complete the management system for farming zones, issue codes for farming establishments, step up traceability, and control harvesting in a sustainable direction. This is not only a requirement from importing markets but also a condition to enhance the competitiveness and transparency of the Vietnamese lobster industry.

Deputy Minister Vo Van Hung assigned the Department of International Cooperation to advise on drafting an official dispatch to be sent to the Chinese side to clarify the technical requirements for ornate spiny lobsters, while promoting professional exchanges between both sides. It is expected that in the third quarter of 2026, the Ministry of Agriculture and Rural Development will dispatch a working delegation to China to continue negotiations and find an appropriate solution.

In a context where lobster consumer demand in China remains at a high level, room to resolve the difficulties still exists. However, the story of the ornate spiny lobster is also a clear warning about the risks of depending on a single market. In the long term, only when mastering seed technology, building transparent and sustainable production chains, and diversifying export markets can the Vietnamese lobster industry develop stably and proactively before fluctuations in global trade.

Since 2021, China has included the ornate spiny lobster in the Grade II endangered animal list and since 2023 has tightened management under the amended Wildlife Protection Law. According to regulations, ornate spiny lobsters imported for food must originate from commercial aquaculture, must not use seed harvested from the wild, and the seed must be of the F2 generation or higher.

Meanwhile, currently 100% of the ornate spiny lobster seed farmed in Vietnam is still harvested from the wild, and no establishment has produced or utilized F2 seed. This is a major barrier making it difficult for the ornate spiny lobster industry to meet China's import requirements.

Source: Bao Cong Thuong