Vietnamese seafood exporters are turning to markets outside of the U.S. – a traditionally key export destination – due to proposed tariffs and growing protectionist measures implemented under the administration of President Donald Trump.
Total Vietnamese seafood exports in May were worth USD 851 million (EUR 738.4 million), which was up 2.7 percent from the same month a year earlier but marked a significant deceleration from the growth seen in earlier months this year, according to data from the Vietnam Association of Seafood Exporters and Producers (VASEP).
VASEP attributed the slowdown in May largely to the U.S. government's announcement in April of plans to impose tariffs on several Vietnamese imports, including seafood.
Exporters accelerated deliveries to the U.S. in April and early May to preempt a potential tariff hike, VASEP said, and because of this rush, Vietnamese seafood exports to the U.S. in May were worth nearly USD 160 million (EUR 138.8 million), which was up 9.7 percent year over year.
However, several businesses said they gradually reduced shipments after 20 May, citing increased cost pressures, market fluctuations, and policy uncertainty, according to VASEP.
Besides Trump’s tariff program, Vietnamese exporters are also grappling with a string of other unfavorable developments in the U.S. market.
The U.S. Court of International Trade recently ruled that the country’s Department of Commerce (DOC) needs to take another look at its decision to remove antidumping duties on catfish and pangasius fillets from Vietnam-based Co May Import-Export Company Limited. The ruling stems from a complaint lodged by U.S. catfish farmers and representative groups who alleged a U.S. DOC decision to remove antidumping duties on Co May was in error.
Regarding shrimp, the DOC also recently released its preliminary findings and decisions that determined duties on certain Vietnamese shrimp firms. The DOC determined that sales conducted by Soc Trang Seafood Joint Stock Company (Stapimex) of certain frozen warmwater shrimp in the U.S. were finalized at below the “normal value” of sales in Vietnam. As a result, Stapimex will be hit with a 35.29 percent dumping margin, as will 22 other companies.
In a release on 7 June, VASEP said it and relevant enterprises “are extremely surprised and deeply concerned about this unusually high preliminary duty rate.” VASEP believes that there was a misunderstanding or error in the latest result, which further exacerbates the challenges faced by the Vietnamese shrimp industry in accessing the U.S. market.
“One major ‘dark cloud’ is the U.S. imposing tariffs on Vietnamese goods. The U.S. is the top export market for Vietnamese shrimp, so this move has a significant negative impact,” Sao Ta Foods Chairman Ho Quoc Luc said in a statement. “While these tariffs affect global trade dynamics – not just Vietnam – Vietnamese shrimp is at a disadvantage because competing countries face much lower tariffs.”
If Vietnam is hit with higher tariffs, according to Luc, Sao Ta may be compelled to exit the U.S. market altogether. To guard against such a possibility, the company plans to ramp up exports to alternative markets such as Australia, Canada, South Korea, and Japan, VASEP cited Luc as saying.
Similarly, major shrimp firm Minh Phu Seafood said in preparation for its 2025 general stakeholders’ meeting that it had already begun diversifying its exports to various markets in 2024, with significant sales growth achieved in the E.U., Russia and South Korea in 2024. By deepening its presence and boosting sales in these markets, Minh Phu has gained opportunities to broaden its customer base and lessen its dependence on major markets like the U.S., where tariff barriers remain volatile and unpredictable, the company said.
Nam Viet, a leading pangasius firm in Vietnam, also said in its documents prepared for its 2025 general stakeholders’ meeting that this year, it will continue to seek new partners and customers and expand into new markets, as well as expand domestic sales.
In another similar case, Caseamex, a major exporting firm, has said that it is shifting its focus toward the E.U. and Asian markets, which, despite high technical requirements to access these markets, pose fewer tariff risks, VASEP said.
In addition to diversifying export markets, many seafood businesses are diversifying their product mix, actively developing deep-processed product lines such as fish balls, seasoned fillets, canned fish, and collagen from byproducts. Through this strategy, they aim to penetrate niche markets and meet the growing demand for convenience foods, especially in major Asian urban centers, VASEP said.
As a result of the diversification efforts, seafood exports to countries under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), including Japan, Canada, and Mexico, have risen sharply, reaching USD 224 million (EUR 194.4 million) in May, which was up 7.9 percent year over year and over USD 1.15 billion (EUR 998 million) in the first five months of 2025, which was up 24.3 percent. Shipments to China, including Hong Kong, also posted impressive gains, hitting nearly USD 185 million (EUR 160.5 million) in May and over USD 900 million (EUR 781 million) over the first five months of the year, marking gains of 22.3 percent and 48.6 percent year over year, respectively.
Australia – the fifth-largest importer of Vietnamese shrimp – is also emerging as a promising destination amid uncertainties in the U.S. Exports to this market rose 7 percent year over year to reach USD 77 million (EUR 67 million) in the first four months of this year.
“These are encouraging signs for market restructuring efforts, highlighting the appeal of products that align with consumer tastes, pricing expectations, and convenient supply chains,” VASEP said.
VASEP is actively recommending that the Southeast Asian country’s seafood sector leverage the nation’s free trade agreements (FTAs), such as with CPTPP nations, through the E.U.-Vietnam FTA, and via the U.K.-Vietnam FTA, to diversify and grow its global footprint.
