Creating momentum for shrimp exports to achieve growth targets

Exports maintain growth momentum

The Vietnam Association of Seafood Exporters and Producers (VASEP) said that shrimp exports in 2024 will maintain double-digit growth as exports to major markets such as the EU, China and the United States recorded good growth. Demand for year-end festivals in the US and EU and demand for Lunar New Year in China contributed to increased orders from these markets.

Although shrimp exports to Japan did not increase strongly, they maintained positive growth momentum due to stable exchange rates in the last quarter of the year and the recovery of the yen.

Besides, exports to smaller markets such as Russia, Canada, Australia, UK, and Taiwan also show great potential in 2024.

The average export price of shrimp to markets at the end of the year also showed positive signs. The average export price of whiteleg shrimp to the US in November 2024 reached the highest level since September 2023 (10.4 USD/kg). The export price of whiteleg shrimp to the EU has increased continuously since June 2024 and reached the highest level of 7.5 USD/kg in November.

Vietnam's shrimp exports are expected to maintain growth momentum in 2025 - (Illustration photo).

The price of whiteleg shrimp exported to Japan has also increased continuously since September 2024, reaching 9.2 USD/kg in November. The price of whiteleg shrimp exported to Korea also reached an average price of 7.7 USD/kg in November 2024, the highest level since September 2023.

The average export price of black tiger shrimp to Japan has increased continuously since September 2024 and reached a peak of 13.8 USD/kg in November. The export price of black tiger shrimp to Korea also followed the same trend as Japan, reaching 11.4 USD/kg in November 2024.

Domestic shrimp prices recovered at the end of the year, raw shrimp supply was scarce, large distribution systems in the world increased their search for supplies from Vietnamese shrimp, although the price was higher but safety was guaranteed, leading to a significant increase in orders.

Raw material prices fall sharply

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), despite many successes, the shrimp industry also faced many major challenges last year. Market fluctuations, especially the continuous decline in raw shrimp prices, even hitting rock bottom compared to previous years, have forced many farmers to hold back or even “hang up their ponds”.

While shrimp prices have fallen sharply, feed costs have increased, causing farmers to face unprofitable or loss-making shrimp farming. In particular, in the first half of 2024, shrimp prices continued to plummet in most sizes, right at the peak time of shrimp stocking for farmers in the Mekong Delta region .

Not only price difficulties, environmental developments and unfavorable weather as well as diseases have always been difficult problems for last year's shrimp crop.

According to the assessment, the shrimp industry in 2024 will still maintain its growth momentum, but in terms of efficiency, farmers and processing enterprises are facing many difficulties due to a shortage of raw shrimp for processing.

Create motivation for development

The Vietnam Association of Seafood Exporters and Producers believes that in order to increase competitiveness and achieve growth targets in 2025, the shrimp farming sector needs to be motivated, such as farmers being able to mortgage and borrow capital from banks normally, granting water surface licenses to people so that they can borrow capital from funds or banks. Stricter control of the circulation and consumption of poor quality shrimp seeds.

The Association proposed that the Government, the Ministry of Foreign Affairs, and the Ministry of Industry and Trade focus on economic diplomacy, bilateral negotiations, and targeted trade promotion in important markets to unlock advantages for Vietnamese shrimp exports.

Japan is the largest importer of shrimp from Vietnam in 2024, but may be overtaken by Indonesian shrimp due to high tariffs in the US and will seek to switch to Japan. Promote negotiations with South Korea to abolish quotas on Vietnamese shrimp exported to South Korea within the framework of the VKFTA Agreement to adjust the tax rate to 0% for Vietnamese shrimp.

The Vietnam Association of Seafood Exporters and Producers assessed that despite facing many challenges in the past year, the Vietnamese shrimp industry has still been resilient in overcoming difficulties thanks to its efforts and determination, along with reasonable strategies. In the coming time, the shrimp industry needs to change its mindset, instead of focusing only on output and high technology, it needs to prioritize sustainability and efficiency, focusing on quality, environmental protection, health and product value.