Seafood exports grew by 6% (over the same period) in the first 5 months of the year, this is an encouraging result on the industry’s path to recovery and development.

Difficulties surround the seafood industry

According to statistics from the Vietnam Association of Seafood Exporters and Producers (VASEP), in the first 5 months of the year, the country’s seafood exports reached nearly 3.6 billion USD, up 6% over the same period in 2023. Among the main products, squid, octopus and other fish (sea fish, freshwater fish) had lower export value compared to the same period last year, with a decrease of 1% and 3% respectively.

Meanwhile, shrimp and pangasius exports increased slightly, up 7% and 4%, respectively. The crab product group had the strongest growth (up 84%), tuna also increased positively (22%), and shellfish exports increased by 13%.

Among the top 5 markets of Vietnamese seafood, the US is the market with the most positive growth with an increase of 7% in the first 4 months of the year. Exports to Korea increased slightly by 2%. Exports to China, Japan and the EU are almost equivalent to the same period last year.

Ms. Nguyen Thi Thu Sac, President of VASEP, assessed that in addition to geopolitical and world economic issues, Vietnam’s seafood industry is facing a shortage of raw materials from both aquaculture and wild capture. The aquaculture industry is affected by the urbanization process, so fluctuations in land planning for production in many localities and unsynchronized land use planning are a big challenge for both businesses and consumers. aquaculture farmers.

In addition, climate change is one of the most pressing environmental issues today, negatively impacting aquaculture. Specifically, prolonged hot weather has affected the ability to adapt to growth and development, reduced resistance, increased the risk of disease leading to poor farming efficiency.

The source of exploited seafood is also facing difficulties as resources are increasingly depleted, the exploitation output is not enough to meet demand, so additional supply from imports must be provided. However, EU market regulations and Vietnam’s new regulations related to IUU mining are causing further bottlenecks in raw materials.

Mr. Truong Dinh Hoe, General Secretary of VASEP also acknowledged that seafood exports in the second half of this year will continue to face significant difficulties and challenges. For the shrimp industry, the challenges are anti-subsidy taxes and anti-dumping taxes in the US market. The price of raw shrimp in Vietnam is still significantly higher than other large producing countries such as India, Ecuador, and Thailand.

For example, whiteleg shrimp sized 70/kg in Vietnamese lagoons this year are about 15,000 – 20,000 VND/kg higher than shrimp of the same size in Thailand, 20,000 – 30,000 VND/kg higher than shrimp of the same size in Thailand. India and 30,0000 – 35,000 VND/kg higher than Ecuadorian shrimp.

The challenge for the pangasius industry is that export prices are still low, consumption in the EU market is very slow and difficult, the Chinese market is unstable, and in the US market there are concerns about ongoing anti-dumping lawsuits. entering the 20th period of administrative review. Meanwhile, the IUU “yellow card” is still a burden for seafood businesses.

Conflicts in the Red Sea cause transport costs to increase, trade conflicts between countries disrupt seafood trade flows, large inventories in import markets… are also big challenges for seafood exports. year-end products.

Many opportunities are opened up

VASEP assesses that, in the context of many difficulties, seafood exports still grew by 6% in the first 5 months of the year, which is an encouraging result on the path of recovery and development of the industry.

VASEP forecasts that seafood exports in the first half of 2024 will reach 4.4 billion USD, up 6% over the same period in 2023. Of which, shrimp exports will reach 1.65 billion USD; Pangasius reached 910 million USD; tuna reached 457 million USD; squid and octopus reached 294 million USD; crab reached 119 million USD; shelled molluscs reached nearly 74 million USD.

The great opportunities for seafood export recognized by VASEP leaders are still quite positive. This opportunity is especially evident in the shrimp industry.

First of all, Ecuadorian shrimp faces significant challenges, including increased inspections and refusal of sulfite labeling by Chinese customs, new anti-subsidy taxes in the US…

Indian shrimp is facing The risk of being banned from importing into the US after a large shrimp production and export factory in this country became the focus of a series of accusations related to falsified documents and intentionally transporting shrimp positive for antibiotics. born in America and mistreating workers…

Another big advantage of Vietnamese seafood is the increasing demand for value-added products. At international seafood exhibitions in the US and EU this year, value-added products are of particular interest to customers. Vietnam has advantages in value-added seafood processing and high worker skills.

According to Mr. Ong Hang Van, Deputy General Director of Truong Giang Seafood Joint Stock Company, Dong Thap province, because raw pangasius output does not increase while demand increases, prices will increase. China is the largest market for Vietnamese pangasius and is now starting to buy high-value products.

Mr. Van expects that from now until the end of the year, the price of exported pangasius will increase by 5-10%. Therefore, pangasius export businesses should not rush to sign low-price export contracts, but need to calmly monitor the market situation to sell at better prices.

According to Ms. Nguyen Thi Thu Sac, to achieve the export target of 10 billion USD this year, seafood businesses need to adapt and adjust their operating plans to suit the market context.

In particular, businesses need to diversify export markets to avoid dependence on one market, while increasing exports to new markets, aiming to expand and promote the development of the domestic market.

In addition, businesses need to promote product image promotion to consumers, build image and recognition for Vietnamese seafood, and update information from markets and properly evaluate situation, thereby providing the most appropriate and timely response.