Vietnam saw the value of its shrimp exports slide down in October as demand from its major markets continued to decline, according to Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam exported shrimp worth USD 348 million (EUR 305.9 million) in October, down 17.3 percent year-on-year.
The export value between January and October decreased 5.8 percent to USD 2.97 billion (EUR 2.61 billion).
Vietnam’s shrimp prices were low in the early months of this year due to cold weather conditions in a number of export markets, including the United States and Canada. The inventory in Japan, South Korea, and European Union was also high earlier this year. In addition, customers tended to wait for prices to fall further, leading to weak demand, VASEP said.
The E.U. was the biggest buyer of shrimp from Vietnam. But despite a rise in export value in the first two quarters, sales to the bloc began to slide in the third quarter. Exports of shrimp to E.U. in October were worth USD 76.3 million (EUR 67.1 million), down 30.6 percent from a year earlier, with the value falling in main markets including the United Kingdom, the Netherlands and Germany. The total export value in the first 10 months, however, rose 4.4 percent to USD 724.7 million (EUR 637.2 million) as sales were high in the first half.
The United States was the second-largest destination for Vietnam’s shrimp products. The export value from this market fell from April to July this year but surged from August to October. Shrimp exports to the United States were worth USD 540.4 million (EUR 475.2 million) between January and October, down 2.7 percent from the same period in 2017.
In September 2018, the U.S. Department of Commerce announced the final results of the 12th administrative review, which lowered the antidumping tariffs on shrimp imports from Vietnam.
VASEP said the favorable tax decision has encouraged Vietnam shrimp exporters to increase shipments to the market, especially to meet rising demand for the year-end holidays.
The trade war between the United States and China was also seen as an opportunity for shrimp exporters from Vietnam to compete effectively with Chinese shrimp products, which have been imposed high import duties in the United States.
Vietnam is expected to export shrimp worth USD 3.8 billion (EUR 3.34 billion) this year, down two percent from last year, said VASEP.
Photo courtesy of VASEP
