Shrimp exports can reach over US$4 billion

Shrimp is the seafood export item with the strongest growth rate in 2020, while shrimp exports continue to record positive signals at the start of 2021. With many favorable conditions for market demand, good competitiveness compared to competitors, the goal of exporting shrimp tothe UScan reachUS$4 billion in this year.

In 2021, there are many favorable conditions for shrimp production and export. Photo: N. Thanh

Many good signals

Good news came to "giants" in the Vietnamese shrimp industry in particular and the whole industry in general. Minh Phu Fisheries Group Joint Stock Company received a complaint settlement decision from the US Customs Service (CBP), which canceled the previously issued decision on October 13, 2020 on the tax application, anti-dumping with Indian shrimp on shrimp products exported from Minh Phu to the United States.

This decision allows Minh Phu to continue to export frozen shrimp to the US withoutincurring additional anti-dumping tax on Indian shrimp or any other anti-dumping tax. At the same time, Minh Phu Group was also refunded the anti-dumping taxes that had been paid in accordance with the decision dated October 13, 2020.

The Ministry of Industry and Trade assessed that this is an objective, fair decision, fully considering the information and efforts of Minh Phu Seafood Joint Stock Company and related parties in the process of handling the case helping to create a healthy competitive environment between US shrimp producers and foreign export companies.

Before that, on January 5, the first shipment of shrimp export ceremony was held in HauGiang. Eight containers of cargo, each container hadabout 20 tons of cargo, more than 160 tons of shrimp processed by Minh Phu Seafood Joint Stock Company leadingthe way for seafood to be exported toother countries with full advantages.

According to the latest statistics of the Ministry of Agriculture and Rural Development, in the first month of 2021, the seafood export value is estimated at US$600 million, up 19.6% over the same period last year. While Pangasius material prices in the Mekong Delta were stagnant, large enterprises in Dong Thap, An Giang and Can Tho, transactions to the Chinese market so far are still facing difficulties due to the quarantine forCovid-19, but shrimp products have had positive signals.

The shrimp market in the first month continued its upward trend from the end of last year. Specifically, in Bac Lieu, frozen black tiger shrimp sized 20 heads / kg increased VND20,000 / kg compared to the end of December 2020 to VND320,000 / kg; size 30 heads / kg increased VND20,000 / kg to VND270,000 / kg. The price of frozen white shrimp sized 60 heads / kg increased VND20,000 / kg to VND130,000 / kg; size 70 / kg increased VND15,000 / kg to VND120,000 / kg.

Outperform export over US$4 billion

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), there are many favorable conditions for shrimp production and export in 2021. Specifically, world demand has remained stable while other exporting countries have not yet recovered. China is the largest shrimp supplier in Asia, but still lacksshrimp for processing and consumption. Along with that, Vietnamese shrimp also has the tariff advantage for Vietnam's net origin of farmed shrimp products in the new generation Free Trade Agreements.

In February 2021, the Department of Agricultural Product Processing and Market Development (Ministry of Agriculture and Rural Development) stated that Vietnam's shrimp exports are continuing to be favorable when the world demand is still increasing while many countries arestill having trouble because of Covid-19. According to experts, the price of shrimp on the world market is forecastedto increase in the first half of 2021. It is forecasted that shrimp exports in 2021 will reach aboutUS$4.4 billion.

From the perspective of exporting enterprises, Mr. Vo Van Phuc, General Director of Vietnam Clean Seafood Joint Stock Company,said: “The Covid-19 pandemicbrokethe supply chain in the shrimp industry, from operations in factories to farming activities. With this condition, we can most likely achieve the targets for shrimp export.”

Referring to product diversification to suit consumer tastes in the context of the Covid-19 pandemic, Mr. Le Van Quang, Chairman of Minh Phu Seafood Corporation, said that it is necessary to promote production of value-added products such as breaded shrimp, and boost exports to markets, especially Japan and the United States.

Deputy Minister of Agriculture and Rural Development PhungDucTien assessed that the US, EU, China markets are very big markets for Vietnam. Vietnamese shrimp with a production level, technological scale and processing is not inferior to other countries in the world. To achieve the export target, from the beginning of the year, units, businesses and farmers must prepare the conditions and stock them according to the 2021 seasonal calendar; attach importance to disease prevention, control impurities, chemical and antibiotic residues in shrimp products to ensure disease and food safety.

“In addition, it is necessary to strengthen links between units participating in the production chain in order to improve quality, ensure traceability, continue to increase the proportion of value-added products for export; promote production links, replicate effective models and production chains, maintain and develop output markets, and fight technical barriers,” Deputy Minister PhungDucTien said.