Three key markets of Vietnam export seafood

EU, USA and Asia have been determined as three key export markets of Vietnam seafood enterprises in the first half year of 2018.

Processing exported tuna. Photo: T.H.

EU – The leading market

According to VASEP, as of the end of June 2018, total value of exporting seafood achieved $US 3.98 billion, increased by 10.5% compared to the same period last year. In particular, the export value of most main exported items has achieved positive growth over the same period in 2017. In that, shrimp increased 5.1%, Pangasius fish was 19.9%, tuna was 11.7%, other fish was 12.6%, shellfish was 7.9%, crab and others increased 4.7%.

In terms of market, the EU, the US and Asia are identified as the three key export markets of Vietnamese seafood enterprises in the first half of 2018. EU has been identified as the leading market.

Specifically, for the EU market, in the first 6 months of 2018, the total export value to this market reached $US 706.5 million, accounting for 17.7% of total export value and up 20.2% over the same period in 2017.

In the first half of this year, thanks to the export value of shrimp and tuna to the EU market, the total export turnover to this market reached the highest level. So far, the EU is the leading export market of Vietnamese seafood.

Particularly for shrimp, export to the EU market in the first half of this year has seen positive growth in all months, because the Vietnamese shrimp companies are making good use of the tariff preferences of this market. Moreover, the main rival of Vietnamese shrimp is Indian shrimp, which continues to have difficulties due to the inspection regime of 50% of import shipments at EU countries’ borders.

With tuna, in the first half of this year, exports of tuna and frozen tuna from Vietnam to the EU increased by 31%, other processed tuna products also increased more than 305% over the same period. As a result, the total value of tuna exports to the EU in the first half of this year reached $ 71.1 million, up 22.8% over the same period last year.

Expanding "fastidious" market

With the improvement of quality and meeting the requirements of quality, food safety and hygiene, seafood companies are promoting export to the "fastidious" market.

For the US market, in the first two quarters of 2018, the US is the largest tuna export market; the second largest market of Vietnamese pangasius and the 4th largest export market of Vietnam’s shrimp. Although the value of tuna exports to this market decreased 8.3% over the same period last year due to the decline in world tuna prices, the export situation is still making relatively good progress.

In contrast, with the export of Vietnamese pangasius to the US, the price of raw materials in the country increased because the companies have been able to compete since the time when Chinese tilapia has been losing market share due to the escalation of the US-China trade war. Vietnamese seafood exporters still consider the US a big export market and that cannot be lost.

By the end of June, the total value of seafood exports to Japan reached $US 615.5 million, increased by 4.5% from the same period last year. This is the second largest shrimp and octopus market in Vietnam. Shrimp export value to Japan during this period decreased by 11.2% over the same period in 2017, but thanks to the demand of this market still being high, the export price is good from $US 11-14 per kg. In particular, Vietnam is still the largest source for Japan.

By the end of June 2018, the value of squid and octopus to Japan reached $US 68.2 million, increased by 8.4% over the same period last year. Along with the Korean market, squid and octopus to Asia are promising.

Korea is the leading market for octopus and the second largest export market for grilled fish and surimi in Vietnam. In addition, in the first six months of this year, shrimp exported to the Korean market also reached $US 190.4 million, increased by 24% over the same period last year. South Korea accounted for nearly 37% of the total export value of octopuses in Vietnam and continued to maintain high growth in the first half, and is expected to continue in the second half of the year.

It can be seen that ASEAN is the market that many seafood exporters in Vietnam shifted to in the first six months of this year. Most of the products exported to this market reached positive growth, such as: Shrimp increased by 6.3%; Pangasius increased by 37.7%; Tuna increased 24.5%, ink exports, octopus increased by 28.4%, shellfish increased by 0.4% over the same period last year. In particular, in the first 6 months of 2018, ASEAN was the leading market for fish and surimi in Vietnam (higher than the Korean market) with a total value of over $US 43 million, an increase of 18.4% over the same period in 2017.

According to VASEP, the large potential markets as mentioned above will be a good opportunity if seafood enterprises strive to develop their production and business to meet the requirements of importers and exporters of aquatic products in 2018, it will reach $US 9-10 billion.