Bright colour in shrimp exports

While many aquatic products for export declined sharply, shrimp appeared in a brightercolour, especially in the US market.

Exports to US increase by nearly 30%

According to data of Vietnam Customs, in the first sixmonths of this year, Vietnam's shrimp exports to the US reached US$323.3 million, up 29% over the same period last year. Despite the impact of the Covid-19 pandemic, Vietnam's shrimp exports to the US grew steadily in the first sixmonths of this year.

Comments from the Vietnam Association of Seafood Exporters and Producers (VASEP) show the US is the only market among the major shrimp import markets of Vietnam that recorded continuous positive growth in all months of the first half of this year.

However, experts also recommend that the Covid-19 pandemic was complicated in the US in the first half of this year with the highest number of infections and deaths in the world, however, the importshrimp demandof USdid not decrease in the at this time,because the USimported to serve the retail channel, e-commerce, home delivery. Vietnamese export enterprises to the US should focus on deep-processedproducts andvalue-added products such aseasily peeled shrimp to suit the consumer demand of this segment.

In the US market, in the first sixmonths of this year, Vietnam’s shrimp had a competitive advantage over competitors' supply thanks to faster stable production after COVID-19 while supplies like India and Ecuador still sufferedbadly. Shrimp processors and exporters of India and Ecuadorwereaffected not only by reducing ordersbut also by domestic production stalled by lockdown orders,lack of workers in factories because they did not workbecause of fear of being infected.

It is forecast that in the third quarter of 2020, the growth of Vietnam's shrimp exports to the US will not be as high as in the second quarter of 2020 because India and Ecuadordiversify to increase exports to the US due to difficulties in China.

Many advantages for shrimp exports

According to Ho Quoc Luc, Chairman of VietnamFimexBoard of Directors, shrimp farming powers such as India, Ecuador, Indonesia and especially China, were heavily affected by Covid-19, causing their shrimp supply chain to be interrupted. For safety, many large shrimp consuming systems are looking to Vietnam.

In the beginning of July, some batches of shrimp exported from India to China were delayed for customs clearance, combined with conflict at the border between India and China, so the shrimpexport of Indian to China will be difficultin the third quarter of this year. On July 10, Ecuador was banned from exporting shrimp to Chinafor three large Ecuadorian shrimp exporting companies because the coronavirus was detected on their packages.This affects the shrimpexport of Ecuador to China.

Due to difficulties in the Chinese market, Ecuador and India will divert exports to the US. Both Ecuador and India plan to decrease prices inthe US market to attract importers. Therefore, Vietnamese shrimp in the US market will be under competitive pressure inprices. However, the plan fordecreasing the selling price will affect the export activities of Indian and Ecuadorian suppliers in the long-time and this is only a temporary solution.Ecuadorian suppliers are also confused aboutthe proper packaging of products for the retail industry. Frozen shrimp blocks of 2-5 kg serving restaurants arebeing converted into peeled shrimp without vein packing 1-2 pounds per bag for retail.

With the advantage of low anti-dumping tax, Vietnam's shrimp exports to the US in 2020 are forecast to increase about 20% compared to 2019.

The Canadian market also has many advantages for Vietnamese shrimp. Canada ranked sixthin importing Vietnamese shrimp, accounting for 5.7% of total Vietnamese shrimp exports to markets. Vietnam's shrimp exports to Canada in the first months of this year still recorded double-digit growth despite the Covid-19 pandemic.

Vietnam is the second largest supplier of shrimp to Canada. In terms of export prices, Vietnamese shrimp is the highest among rival supplies on the Canadian market. The government of Canada is in need of diversifying markets and reducing dependence on imports from the US, and Vietnam is one of the countries Canadian enterprises are interested in promoting import and export activities.