Shrimp exports to China increase again

Vietnam’s shrimp exports to China increased by 10%, reaching nearly 47 million USD, in June 2019. However, in the first six months of this year, shrimp exports to this market decreased by 4.9%, reaching 233.5 million USD.

According to the Vietnam Association of Seafood Exporters and Producers, Vietnam’s shrimp exports to China declined in 2018 and in the first months of 2019 as China increased shrimp imports from India and Ecuador because they cost less.

In the first quarter of 2019, Chinese shrimp imports from India increased by 624% in volume and 573% in value compared to the same period in 2018. In the first half of this year, Ecuadorian shrimp exports to China increased by 224% in volume and 185% in value compared to the same period last year.

In addition, the devalued yuan is also a factor affecting Vietnam's shrimp exports to this market.

In the context of the continual depreciation of the yuan against the dollar, it is also the cause of higher export prices of shrimp from Vietnam to China, reducing the competitiveness of Vietnamese shrimp.

China is the 4th largest shrimp import market in the world, taking 6.9% of the total shrimp imports of the world in 2018. Demand for shrimp imports for domestic consumption and re-export processing of China is still stable. Shrimp is always the most popular product at seafood exhibitions in China.

Vietnam ranked 6th among the main shrimp suppliers to China, making up 5.7%. In terms of import prices, on the Chinese market, the price of shrimp imports from Ecuador, India and Indonesia are always the most competitive. The average import price from Thailand is the highest, while Vietnam’s shrimp is second. Vietnamese shrimp must compete with Asian suppliers on the Chinese market.

According to the World Trade Center (ITC), China's shrimp imports in the first five months of this year reached 1.4 billion USD, increasing by 196% compared to the same period last year. Ecuador is the largest shrimp supplier to China; India and Thailand ranked 2nd and 3rd, respectively . Shrimp imports into China from the top 5 supply grew well compared to the same period last year.

Exports of Vietnamese shrimp to China have shown signs of increasing in May 2 and June 6. India has passed the main harvest, export of Vietnam shrimp to China is expected to decrease less. The export value of the whole year to this market is comparable to last year.

China increasingly requires more stringent quality and product origin. It is possible, from October 1, 2019, that shipments of food imported into China must have export certifications.

Therefore, businesses need to pay attention to new requirements on quality, origin as well as regulations, standards on packaging, goods labeling and regional bar codes for sustainable exports as well as enhancing added value. For shrimp products, in order to increase competitiveness, shrimp farmers need to aim at raising clean shrimp with required international market quality standards such as ASC and BAP to easily enter high-quality seafood distribution systems of China.