Seafood exports up 15% in the first seven months

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the seafood exports in July 2017 were estimated to continue to grow from the second quarter with a total value of US$ 714 million, a year-on-year increase of 17%. Total seafood exports in the first seven months of 2017 were calculated at US$ 4.32 billion, up by 15%.

Seafood processed for exports in Binh Dinh Fishery Joint Stock Company

As analyzed by VASEP, after a slight increase of nearly 5% in the first quarter of 2017, mainly due to seafood such as tuna, squid and sea fish, Vietnam's seafood export continued to grow in the second quarter with a stronger growth rate by boosting export of all key products. With an export growth of more than 10% in the first three months of the second quarter, Vietnam's seafood export value in the first half of 2017 reached US$ 3.6 billion, a year-on-year increase of 14.7%.

In the first quarter, shrimp export had a slowdown (slightly down 0,1%) due to the decrease in raw material sources and increase in buying price of raw materials. Regarding the shrimp market, Australia’s ban on shrimp import in the past six months also caused full of hardships for many enterprises which export shrimp to this market in the first months of 2017.

However, Australia continued to loosen the products which were banned from import, Vietnam’s shrimp export started to recover quickly in the second quarter (up over 30%), bringing the total shrimp export in the first six months to US$ 1.56 billion, up nearly 15% from the same period last year.

In addition, to be smeared by the mass media from the beginning of the year, Tra fish export is difficult to regain its position in the EU market. Furthermore, this market has a rapid spread to other markets on quality requirements, while the US market continues to apply a high anti-dumping tax rate for tra fish and will apply strict control policy for tra fish from September 1, 2017. These difficulties will put a strong pressure that makes tra fish industry must change its thought of market access, focus on improving quality, drive back the bad news on Vietnam’s tra fish. Moreover, the tra fish export to the US also decreases due to the influence of anti-dumping tax and Farm bill which shall take effect from August 2, 2017.

However, Tra fish export in the second quarter still increased slightly by 2-4% thanks to the increase in export to other markets, bringing the total export value in the first 6 months to nearly 6%, reaching US$ 836 million. Of which, Tra fish export to the EU had the sharpest decrease of 24%, to the US decreased 5.7%, but to China still sharply increased 46% and to other markets also increased significantly, so tra fish export in the first half of 2017 still reached a positive result. Tra fish export in July was estimated at US$ 148 million, up 7.7%, bringing the total export value of tra fish in the first seven months to US$ 985 million, up 6%.

Exports of tuna, squid-octopus and other seafood increased sharply in the second quarter, contributing significantly to the sharp increase in the total seafood export value in the past six months. Of which, tuna export increased nearly 21%, equivalent to US$ 271 million, octopus export increased 50%, equivalent to US$ 269 million, exports of other marine fish increased 14%, equivalent to US$ 581 million.

In addition, seafood exports to Japan, China, and South Korea reached double digit growth due to the sharp increase in shrimp export to these market. Seafood exports to other markets such as Russia, Canada and Brazil also reached double digit growth, contributing significantly to the total seafood export in the first six months. Meanwhile, seafood exports to the US and Australia also sharply fell due to the decrease in shrimp export to these markets.

It is forecasted that total seafood export in the second half of the year shall continue to rise due to increasing in the market demand together better adjustment of good and market structure. However, difficulties from the US market for shrimp and tra fish shall partly restrict the growth rate in the second half of the year.

VASEP expects that seafood exports in the second half of 2017 will hit US$ 4.46, up nearly 11% over the same period in 2016 and up 23% over the first half of 2017. The total seafood exports in 2017 will reach US$ 8 billion, up 14% compared to US$ 7.05 billion of 2016.