Vietnam earned less from exports of shrimp in the first half due to lower demand from major markets and more competition from India and Ecuador, the Vietnam Association of Seafood Exporters and Producers (VASEP) said 25 July.
Local material prices were down while export rates were not recovered in the period, VASEP said.
In the first six months, Vietnam exported shrimp worth USD 1.4 billion (EUR 1.26 billion), down 12 percent from 2018. Of the total, the export value of whiteleg shrimp was USD 963 million (EUR 864.2 million), down 12 percent, followed by giant tiger shrimp with USD 325 million (EUR 291.7 million), down 16 percent, and other marine shrimp with USD 153 million (EUR 137.3 million), up 2 percent year-on year.
The European Union was the biggest destination for shrimp from Vietnam between January and June, with a total export value of USD 300.5 million (EUR 270.5 million) - a decline of 25.9 percent from a year ago. Sales to the United Kingdom, Germany, and the Netherlands dropped 9.5 percent, 12.5 percent, and 50.2 percent, respectively.
The free trade agreement signed last month between Vietnam and the E.U., however, will likely help drive up the exports to the E.U. in the future. Shrimp products from Vietnam will become more competitive after the agreement takes effect, VASEP said.
The value of exports to the United States also fell in the period to USD 250.4 million (EUR 225.4 million), down 2 percent year-on year, as shrimp from Vietnam met with fierce competition from India and Ecuador.
Shrimp exporters, including Vietnam, are likely to benefit from the high taxes imposed on shrimp from China by the U.S. Exports of breaded shrimp from Vietnam, for example, rose 53 percent in volume to 4,281 metric tons and increased 48 percent in value to USD 30.9 million (EUR 27.8 million) in the first five months, according to data from U.S. Department of Agriculture, as cited by VASEP.
Vietnam also received less value from shrimp exports to China in the first half of the year, with USD 233.5 million (EUR 210.1 million), 4.9 percent lower than the same period last year. The drop was due to China sharply increasing low-priced shrimp imports from India and Ecuador, according to VASEP.
Other factors leading to the decrease of shrimp exports from Vietnam to China in the first six months of 2019 include strict control by Chinese authorities over exports through its land borders, negative impacts of trade war causing demand to fall, and the devaluation of Chinese currency against the U.S. dollar, making Vietnam shrimp more expensive.
VASEP said it expects Vietnam’s shrimp exports to increase beginning July due to positive impacts by free trade agreements, opportunities from the Sino-U.S.trade war, and higher demand from major markets as they gear up for the end-of-year holiday season. Additionally, VASEP forecasted that competition from India will cool off, as the main harvesting season in India has passed.
