In July, Vietnam's shrimp exports reached 375 million USD, up 17% compared to July 2023. This is the highest level since the beginning of the year and also the best growth month since February this year. In the first 7 months of the year, shrimp export turnover reached more than 2 billion USD, up 8% over the same period last year.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), in July this year, shrimp exports recorded growth in most major consumption markets such as the US, China, and the EU. Markets such as Japan and South Korea, which had recorded decreases or only slight increases in previous months, recorded double-digit growth rates in July.

Reduced inventories and the need to import goods for year-end holidays have led to increased imports in markets. In addition, raw shrimp prices from producing countries around the world as well as Vietnam have tended to increase, positively affecting shrimp export prices.

Data: General Department of Customs, VASEP (Compiled by H.Mì)

For the US market, Vietnam's shrimp exports increased by 16% to 89 million USD in July. In the first 7 months, shrimp exports to this market reached 391 million USD, up 4% over the same period last year.

Inventory in the US has decreased, retailers need to replenish inventory before the year-end holiday season. Positive information about the US economy such as retail sales in July increased slightly compared to the same period last year, consumer spending, business investment and exports, increased wages and low unemployment rate, inflation in the US showed signs of cooling down. Frozen shrimp is still the leading item in the top best-selling retail products in the US.

US shrimp import demand is expected to continue to increase in the third quarter and prices will increase slightly from July onwards.

According to data from the US National Oceanic and Atmospheric Administration (NOAA), in the first 6 months of the year, the US imported 351,025 tons of shrimp, worth 2.7 billion USD, down 3% in volume and 6% in value compared to the same period in 2023.

For the Chinese & HK markets, Vietnam's shrimp exports to this market tended to recover in July with double-digit growth compared to the same period last year. In the first 7 months, shrimp exports to this market reached 399 million USD, up 18% compared to the same period last year.

Vietnam's shrimp exports to China increased again thanks to increased import demand from this market. In addition, Ecuador (the main competitor of Vietnamese shrimp in the Chinese market) faced strict inspections from China and some shipments were rejected in June due to sodium metabisulfite residue. This affected Ecuador's shrimp exports to China.

VASEP commented that exporting enterprises continue to face difficulties such as increased shipping costs and risks of conflicts in the world. Shrimp farming activities in August and September will also be affected by heavy rains, leading to the possibility that from now until the end of the year, the amount of commercial shrimp in Vietnam will not be much.

However, businesses have also had their own strategies such as signing contracts for the whole year, increasing raw material reserves. VASEP hopes that in the last months of the year, the world economy and major import markets will have better signals so that the shrimp industry can achieve the set goals for 2024.

Source: Vietnambiz