Facing intensifying competitive pressure, Vietnam’s shrimp industry is shifting toward a growth model driven by technology adoption, deep processing, traceability, and higher value-added production in an effort to maintain market share and strengthen its position in the global seafood market.

Amid continued volatility in the global seafood market, Vietnam’s shrimp sector remains a key pillar of the country’s seafood exports, accounting for more than 40% of total export turnover and reaching over 100 international markets.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), shrimp exports in the first four months of 2026 reached approximately USD 1.5 billion, representing a 15% increase compared to the same period in 2025.

Despite this positive growth, the industry continues to face significant pressures, including rising logistics costs driven by geopolitical tensions and uneven recovery in consumer demand across major export markets.

At the same time, Vietnam’s shrimp sector is facing increasing competition from leading exporting countries such as Ecuador, India, and Indonesia.

While Ecuador has emerged as a highly competitive supplier due to its low production costs supported by large-scale industrial farming, India continues to maintain its position as a global leader in shrimp production volume.

To sustain long-term growth under mounting competitive pressure, Vietnam’s shrimp industry can no longer rely solely on production scale or low-cost advantages.

Instead, the sector is being compelled to shift decisively toward deeper value creation.

Seafood enterprises are increasingly moving into higher-value-added product segments rather than depending primarily on raw frozen exports.

At the same time, major shrimp-farming regions are accelerating the adoption of high-tech farming systems, circular aquaculture models, and green production standards to meet increasingly stringent import market requirements.

One of the industry’s most pressing bottlenecks remains production costs, particularly those related to feed.

Optimizing feed conversion ratios (FCR), diversifying raw material inputs, and increasing the proportion of domestically sourced feed ingredients are viewed as critical strategies for lowering costs and improving value chain efficiency.

In addition, shrimp seed quality continues to be a decisive factor affecting productivity and long-term competitiveness.

Disease-free, disease-resistant broodstock with strong climate resilience are being prioritized to reduce disease risks and stabilize output.

Technology adoption in shrimp farming is also accelerating rapidly through models such as Biofloc, Eco-RAS, Internet of Things (IoT), and artificial intelligence.

These solutions enable real-time environmental monitoring, growth tracking, and operational cost optimization, helping enterprises improve productivity while enhancing sustainability.

At the value chain level, traceability has become a mandatory requirement in premium export markets such as the United States, the European Union, and Japan.

This requires stronger coordination among shrimp farmers, processing enterprises, and regulatory authorities to establish transparent supply chains that meet international compliance standards.

At the same time, deep processing is increasingly recognized as a strategic pathway for enhancing export value.

Rather than relying heavily on semi-processed frozen products, enterprises are expanding into high-value convenience products such as peeled shrimp, fully cooked shrimp, and ready-to-eat seafood products designed to meet evolving consumer preferences.

The development of a “high-quality Vietnamese shrimp” brand is also seen as an essential strategy for strengthening international market positioning, increasing selling prices, and expanding market share in premium segments.

According to Deputy Minister of Agriculture and Environment Phung Duc Tien, Vietnam’s seafood export target of USD 11.5 billion in 2026 is ambitious but achievable if the entire industry accelerates its transition toward a growth model based on quality, deep processing, and sustainable development.

The Ministry of Agriculture and Environment has also emphasized the importance of strengthening linkages across the entire supply chain, from farming areas and processing plants to logistics systems and end markets, to ensure stable delivery performance and transparent traceability.

Such efforts are considered essential for enhancing the reputation of Vietnam’s shrimp brand in global markets.

By effectively capitalizing on market opportunities, reinforcing supply chain resilience, and remaining committed to green transformation, digitalization, and deep processing, Vietnam’s shrimp industry is expected to make a significant contribution to the country’s 2026 seafood export goals and, in the longer term, establish a sustainable national shrimp brand on the global stage.

Source: Tap chi Kinh te Tai chinh