Seafood exports are forecast to recover from the fourth quarter of 2023

According to the Department of Fisheries (Ministry of Agriculture and Rural Development), in the first 8 months of 2023, seafood export turnover reached 5.68 billion USD, down 25.4% compared to the same period in 2022.

Seafood exports are forecast to recover from the fourth quarter of 2023

The reason comes from a sharp decrease in orders in large markets such as the US, EU..., leading to high inventory. Combined with increased prices of input materials serving the seafood industry, shipping costs continue to put pressure on seafood production activities.

Giving positive signals for Vietnam's seafood exports in the last months of the year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP), in August 2023 alone, seafood export turnover is estimated to reach 846 million USD, although still 15% more than August 2022, is the lowest negative growth in the past 6 months and sales are much higher than previous months.

Shrimp exports in August 2023 decreased by 19% compared to the same period last year. Accumulated in the first 8 months of the year, this item brought in nearly 2.2 billion USD in foreign currency, down 28%. Shrimp export turnover from May 2023 to present has continuously increased.

Pangasius alone reached about 167 million USD in August, also recording the lowest decline in 6 months. By the end of August, pangasius exports totaled nearly 1.2 billion USD, down 34% over the same period in 2023.

In particular, the results of the evaluation of the food hygiene and safety control system for exported catfish by the US Food Safety and Inspection Service (FSIS) were very positive, with no major errors. This will be the basis for businesses to increase selling prices in other markets.

Seafood exports may have a more positive trend if the EC's inspection program in October for exploited seafood results in a positive assessment. However, from a consumption perspective, shrimp and seafood also have optimistic hopes about the recovery of markets and other fluctuations.

According to industry experts, currently, shrimp export prices are starting to increase from 7,000 - 22,000 VND/kg depending on the type. Demand for purchasing pangasius also increased.

The Import-Export Department (Ministry of Industry and Trade) stated that, although still facing many difficulties, seafood exports are likely to recover from the fourth quarter of 2023 when demand for the year-end holiday season increases, and seafood exports are likely to recover from the fourth quarter of 2023. Supply has decreased due to prolonged low prices, causing farmers to limit stocking and prices of some types of seafood show signs of nearing bottom. The Chinese and Japanese markets... have also shown more positive signs.

However, Vietnam's shrimp production costs are currently higher than Ecuador and India, so to increase competitiveness, Vietnam needs to focus on more value-added processing in 2023. This requires more investment. quite large from the business.

From a business perspective, Mr. Le Van Quang - Chairman of Minh Phu Seafood Group said that black tiger shrimp production is Vietnam's advantage compared to other countries. Black tiger shrimp has a longer production cycle than white shrimp. Minh Phu Seafood Group is aiming to participate in additional activities or efforts related to black tiger shrimp production this year.

Currently, the industry-wide value chain is not strong in technological innovation, high production costs force the seafood industry to reduce production costs, with old ways of doing things in the new context, it will not improve competitiveness. .

Mr. Phung Duc Tien - Deputy Minister of Agriculture and Rural Development requested that the fisheries industry build a standard price structure for the industry, with specific standards on breeds, feed, environment, veterinary medicine... to Applies to each farming method. The breed must ensure a high survival rate, good growth, and low food consumption to create competitiveness.

In addition to the main export products of shrimp and pangasius, seafood is a potential product, an important piece of the seafood industry and still has a lot of room. Therefore, Deputy Minister Tien requested localities to pay attention and take care of all species raised in the area.

Mr. Nguyen Nhu Tiep - Director of the Department of Quality, Processing and Rural Development (Ministry of Agriculture and Rural Development) - said that the seafood industry has promoted development with three major markets: Europe and the US. and China. In the coming time, the Department of Quality, Processing and Market Development will continue to develop the Guangxi market (China) through completing a memorandum of understanding on cooperation in agricultural development and agricultural trade. .

As for VASEP, shrimp industry enterprises are currently very close to the market, flexibly adjusting sales policies. With the pangasius market, the price is currently at its lowest level, businesses need to cooperate closely to get the best selling price in the near future. For farmers, it is necessary to cooperate with businesses to master the market, expand farming, and ensure supply matches demand. With this momentum, VASEP predicts that seafood exports in 2023 will reach over 9 billion USD.