The European Union market, with its high quality requirements, is an attractive destination for the shrimp industry of many countries, including Vietnam. Shrimp meeting EU standards not only helps increase product value but also affirms the position of the Vietnamese shrimp industry in the international market.

The EU is currently the 4th largest shrimp import market of Vietnam, accounting for 13% of the total value of Vietnam's shrimp exports to markets. In this market, Vietnamese shrimp has to compete strongly with strong competitors from Asia such as India, Thailand and Latin America such as Ecuador and Brazil. This shows that Vietnamese shrimp is increasingly affirming its quality, ensuring high requirements in the EU market.

In the first 9 months of this year, Vietnam's shrimp exports to the EU reached over 360 million USD, an increase of 15% over the same period last year. In the first 9 months of 2024, shrimp exports to the EU only decreased in February and March, exports in the remaining months recorded double-digit growth.

The average export price of Vietnamese shrimp to the EU, especially the price of white-leg shrimp, has also recorded continuous growth since June this year. This shows that the EU market's demand for Vietnamese shrimp is still high, especially white-leg shrimp.

With its stringent standards for quality and food safety, the EU market has become an important barometer for the competitiveness of Vietnam’s shrimp industry. From minimizing the environmental impact of farming to ensuring traceability and animal welfare, every exported shrimp must meet the highest standards.

In the first 9 months of this year, among Vietnam's seafood export products, shrimp brought in the highest export turnover, reaching 2.8 billion USD, up 11% over the same period in 2023. Shrimp exports to major markets (US, EU, China, etc.) all recorded positive growth.

In the first 9 months of this year, Vietnam's shrimp exports to the US reached 566 million USD, up 9% over the same period last year. In the US, the US Federal Reserve lowered interest rates at its September meeting and is expected to have 2 more interest rate cuts in November and December, which will contribute to boosting consumption due to lower borrowing costs, especially when the number of jobs is increasing. This is beneficial for exporting goods to this market.

According to data from the US National Oceanic and Atmospheric Administration (NOAA), in the US market, in August 2024, Vietnam's shrimp exports recorded more positive results than other competitors such as India and Ecuador when shrimp exports from these sources to the US all decreased.

The average price of shrimp imports from Vietnam to the US increased from 4.59 USD/pound in July 2024 to 4.95 USD/pound in August 2024.

Vietnam's shrimp exports to China & HK increased by 77% in September. In the first 9 months, shrimp exports to this market increased by 29% to 585 million USD. China is introducing many solutions to increase consumer spending among people, which supports shrimp imports to this market.

In 2024, frozen shrimp exports will still be affected by the price trend that has not clearly recovered, along with competitive selling price pressure with Ecuadorian and Indian shrimp. However, Vietnam's processed shrimp still has a good position in the markets. Therefore, by the end of September, processed white-leg shrimp exports still increased by nearly 10%, while frozen white-leg shrimp exports increased slightly at 4.5%.

Vietnam's raw shrimp prices have been more positive since July this year. The prices of raw white-leg shrimp of sizes 50, 80, 100 pieces/kg increased steadily from July to September. The average price of Vietnamese shrimp exported to the US and EU has also increased since June. Export prices to China and Japan have also increased slightly.

Raw shrimp prices are expected to remain positive in the fourth quarter, but there is a possibility of local raw material shortages as this is the period when China will increase purchases for the Lunar New Year and New Year holidays, and businesses need raw materials to boost production for year-end orders.

Source: VASEP