Shrimp exports expected to increase in last six months

Vietnam’s shrimp exports in the first six months of 2017 reaches US$1.56 billion, up 15.7% over the same period last year.

Vietnam’s shrimp exports in the first six months of 2017 reached US$1.56 billion, an increase of 15.7% over the same period last year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Of which, White leg shrimp exports reached US$955 million, up 20.4% over the same period, while Black tiger shrimp recorded US$421 million, down 5.3%. The strong growth in this sector contributed to the total seafood export value of Vietnam in the first half of 2017 was estimated at US$3.6 billion, up 14.6% year on year.

Shrimp exports recorded a strong growth in the last three months as in the first quarter of 2017, domestic shrimp raw material resources fell sharply, while the price of raw materials increased, leading to a shortage of raw materials for businesses. This has caused shrimp exports to slow down, slightly down by 0.1% compared with Q1 2016.

However, by the second quarter of 2017, the reduced supply of shrimp in some producing countries and in the main import markets created opportunities for Vietnamese shrimp to boost its export value in the first half of this year. In addition, Australia's gradual easing of its ban on shrimp imports contributed to the high growth.

This was also a time when the domestic supply of raw materials significantly improved, with harvesting blooming and raw shrimp prices dropped slightly compared to the first months of the year. Export processing enterprises were not short of raw materials to serve the signed contracts.

According to businesses, in the first half of this year, shrimp exports have moved from the US to other markets with high demand and lower export costs, such as Japan, the European Union and the Republic of Korea.

In regards to the Japanese market, thanks to the rise of the Japanese yen and increased demand for shrimp, along with improved quality of seafood processing enterprises in Vietnam, Japan has become the leading market for Vietnamese shrimp, replacing the US.

With such momentum of growth, shrimp exports in the last six months this year are expected to continue increasing, especially when demand in global markets will increase sharply during Christmas and New Year holiday.

However, the shrimp industry is facing many difficulties and challenges, especially increased barriers related to technical barriers in importing countries. VASEP forecasts that shrimp exports in 2017 will reach US$3.4 billion, an increase of 9% over 2016.

Meanwhile, tra fish, another key product of Vietnam's fishery industry, is still facing many difficulties with a growth rate of less than 3% in the first six months of 2017, equivalent to US$790 million.

"The reason is due to smear campaigns run by the media in European countries. In addition, the US continues to impose anti-dumping duties and will apply a strict control regime against tra fish from September 1, 2017. These are the two major markets for Vietnamese tra fish," VASEP said.

Exports of tuna, squid, octopus and other seafood increased sharply in the second quarter, contributing significantly to the total value of seafood exports in the past six months. Of which, tuna exports increased by nearly 25% to US$225 million; squid and octopus exports increased the most with 54% to US$179 million; exports of other marine fish increased 13%, reaching US$511 million.

Demand for imports from Europe increased, while the reduced supply of squid from countries around the world this year is an advantage for Vietnamese enterprises.