Why has China sharply increased imports of Vietnamese lobster?
Vietnamese green lobster weighing 150–300 grams per piece – a product currently favored in the Chinese market. In 2025, Vietnam’s lobster exports to China surged dramatically, reaching a record USD 858 million, up 208% compared to 2024. China became the largest importer of Vietnamese lobster, accounting for nearly the entire export turnover (USD 845 million). Below is an analysis of the key factors behind China’s increased lobster imports from Vietnam in 2025, examined from perspectives including market demand, trade and quarantine policies, pricing and production, bilateral trade relations, and supplier competition.
China’s increased lobster imports from Vietnam in 2025 result from multiple converging factors. On the demand side, China’s expanding middle and affluent classes show rising appetite for premium cuisine, viewing lobster as both a delicacy and a symbol of prosperity during festive occasions. On the supply side, Vietnam responded swiftly by focusing on permitted lobster species, expanding farming capacity, and complying with stringent quarantine standards. Bilateral trade relations between Vietnam and China also improved markedly, facilitating official exports with preferential tariffs. At the same time, shifts in international competition, particularly the absence of Australian lobster and tariff barriers on North American lobster, created favorable conditions for Vietnamese lobster to capture market share. With exports to China tripling within a year, Vietnam is emerging as a key lobster supplier to China. However, to sustain growth, Vietnam must continue improving quality, stabilizing supply, and proactively addressing evolving standards and the potential return of competitors.
- Rising demand from the Chinese market
Premium consumption trends: Chinese consumers increasingly favor high-quality seafood that is safe, traceable, and worthy of premium pricing for exceptional dining experiences. Rather than focusing on low-cost frozen shrimp, consumers are shifting toward high-end segments such as large shrimp, live or fresh lobster, and value-added products for restaurants and hotels. This change in preferences provides strong momentum for Vietnamese lobster, recognized for its quality and suitability for premium segments.
Festive seasonality and cultural factors: Demand for lobster in China spikes during the Lunar New Year, when households prepare for year-end celebrations. Lobster is popular at banquets due to its vibrant red color symbolizing luck and prosperity. In particular, smaller lobsters weighing 150–300 grams are favored by the increasingly popular seafood buffet restaurants across China.
Economic recovery and stimulus policies: Following China’s post-COVID reopening, improved household incomes and government policies promoting domestic consumption boosted demand for premium food products such as lobster. In 2025, the rapid expansion of e-commerce and modern retail chains further broadened access to imported lobster. In the first three quarters of 2025, China imported nearly 49,900 tons of lobster, up 13% year-on-year. This strong demand created substantial opportunities for suppliers such as Vietnam.
2. More favorable trade and quarantine policies
Market access and tariff preferences: Vietnam–China agricultural and seafood trade relations have seen positive progress. China approved official import protocols for various Vietnamese products through bilateral agreements. Key Vietnamese seafood products, including lobster, black tiger shrimp, and pangasius, benefit from zero import tariffs under free trade agreements such as ACFTA and RCEP. With a 0% tariff advantage, Vietnamese lobster is more competitively priced than U.S. and Canadian lobster, which face import tariffs of approximately 17% and 32%, respectively. Vietnam’s geographic proximity also shortens transportation time for live lobster shipments, reducing losses and logistics costs. These factors create clear trade advantages, encouraging higher Chinese imports.
Quarantine and import regulations: In 2023, China amended its Wildlife Protection Law and classified ornate spiny lobster (Panulirus ornatus) as a protected species. The new regulation prohibits harvesting and trading of wild ornate lobster and permits imports only if strict farming conditions are met, including clear documentation and use of F2-generation seed or later. Importers must obtain special wildlife permits, and Vietnamese farms and packing facilities must be pre-approved by Chinese authorities. These stricter controls initially disrupted exports in 2023. However, through close coordination, China agreed to consider mechanisms for farmed ornate lobster and conducted online inspections of Vietnamese facilities. Vietnam’s Ministry of Agriculture and Rural Development encouraged farmers to shift to green lobster (Panulirus homarus), which is permitted and highly favored in China.
Exporter adaptation: By 2025, lobster exports to China had stabilized through official channels. Vietnam now has 46 live seafood packing facilities approved by Chinese authorities. Exporters comply with traceability requirements and pilot labeling programs in Phu Yen while strengthening quality control. China continues to import green lobster, while ornate lobster remains restricted. Regulatory clarity has enabled Vietnamese farmers to focus on permitted species. Although China is expected to implement stricter registration requirements under Order 280 from mid-2026, the 2025 framework remains conducive to Vietnamese lobster exports.
3. Vietnamese lobster production
To meet China’s substantial demand, Vietnam expanded lobster farming in recent years. Key farming areas such as Xuan Dai Bay (Phu Yen) and Cam Ranh (Khanh Hoa) restored output and increased supply. According to VASEP, Vietnam currently has abundant green lobster supply, enabling rapid export growth. In the first three quarters of 2025, China imported 17,365 tons of lobster from Vietnam, nearly triple the previous year, valued at USD 556 million. Farming area and cage numbers expanded significantly, with Song Cau (Phu Yen) alone hosting over 27,000 cages.
Supply challenges: Despite growth, farmers face risks from extreme weather and disease. Historic floods in late November 2025 caused mass lobster mortality in Phu Yen, potentially tightening supply in early 2026 and pushing prices upward. Disease management and input costs also require close control. Authorities are promoting sustainable farming practices, environmental monitoring, and farming area registration to enhance resilience.
4. Shifts in Vietnam–China trade relations
China became Vietnam’s largest seafood import partner in 2025. Trade has increasingly shifted from informal border channels to official exports, reducing risks and improving transparency. Chinese enterprises are importing directly rather than through intermediaries, while Vietnamese authorities have tightened export certification and quality control. Bilateral cooperation forums and border infrastructure improvements have facilitated record export levels in 2025.
For China, increasing lobster imports from Vietnam aligns with its strategy of diversifying suppliers following trade tensions with Western countries. The ban on Australian lobster since 2020 created significant market gaps. While trade normalization with Australia progressed by late 2024, Australian lobster had not fully returned in 2025. China used this period to expand imports from Vietnam and other ASEAN countries.
5. Competition and Vietnam’s positioning
Australia’s absence created a major opportunity. Previously holding up to 50% market share, Australian lobster was restricted, allowing Vietnamese lobster to gain traction. While Indonesia and Thailand increased exports, their volumes remained modest. In 2025, Vietnam captured an estimated near 40% share of China’s lobster imports based on value, becoming the standout supplier.
North American competition declined due to high tariffs amid trade tensions. Canada’s exports fell 39%, and U.S. shipments declined 10% in 2025. Vietnamese lobster benefited from tariff exemptions and faster delivery times for live products.
Other suppliers such as New Zealand and Mexico remain significant but focus on different lobster species. Vietnam is strengthening its position in the tropical small-sized lobster segment through competitive pricing and stable supply. While the eventual return of Australian lobster and China’s domestic farming experiments may intensify competition in the long term, in 2025 Vietnam leveraged tariff advantages, quality, and availability to achieve the fastest growth in the Chinese market.
Vietnamese lobster is increasingly perceived as a premium delicacy among affluent Chinese consumers, representing a valuable opportunity for Vietnam’s lobster industry to solidify its brand and market position.
Source: VASEP
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