AsemconnectVietnam - Vietnam earned nearly $4.2 billion from seafood exports in the first half of this year, down 27 per cent compared to the same period last year, according the Vietnam Association of Seafood Exporters and Processors (VASEP).

Among key products, shrimp exports stood at $1.6 billion, a year-on-year decline of 31 per cent, and tra fish $885 million, down 38 per cent.
The fall in exports was blamed on low consumption demand, rising prices of production materials and inflation, as well as tightened control relating to food safety and hygiene and illegal, unreported and unregulated fishing (IUU) regulations in markets like the EU, according to VASEP. Vietnam is also facing fiercer competition from countries such as Ecuador and India.
However, VASEP forecast that seafood exports would gradually recover in the second half of the year due to positive signs from consumption markets, with orders increasing for the festive season at year-end.
Seafood exporters to see improved profits in H2
Seafood exporters will start to record improved profits in the second half of 2023 thanks to lower costs, including lower input prices and reduced transportation costs.
Regarding input materials, the prices of raw shrimp and fish, accounting for 20 per cent of the cost of goods sold (COGS), decreased by 9 per cent and 4 per cent respectively over the same period last year, while the price of aqua feed remained high.The average price of aqua feed peaked in May 2023 at VNĐ14,900 per kg and feed companies only started reducing the price from June 2023. Thus, the price of aqua feed in the first six months of 2023 was still 8 per cent higher than in the same period last year. As feed prices account for 60 per cent of COGS, coupled with a decline in the industry's average selling price in the first half of 2023, analysts from SSI believe that most manufacturers in the industry have witnessed margins and profits may have bottomed out in the first half of 2023.
Shrimp import demand in main markets is forecasted to increase slightly in H2
At the 2023 General Meeting of Members and the 25th anniversary of the establishment of VASEP held on June 12, 2023, Mr. Do Ngoc Tai - Vice Chairman of VASEP, Chairman of Shrimp Committee - Director of Tai Kim Anh Seafood JSC gave a presentation on the situation of shrimp exports in the last 6 months of 2023.
In the first 5 months of 2023, Vietnamese enterprises have exported shrimp to 84 markets, bringing sales of 1.2 billion USD, down 34% compared to the same period in 2022.
In the first 5 months of 2023, Vietnam's shrimp exports to the US reached 227 million USD, down 42% compared to the same period last year. The US shrimp imports continued to decrease by 18%.
The reason for the decrease in shrimp exports to the US is that the price of Vietnamese shrimp is higher than other competitors such as Ecuador, India, and Indonesia. High inflation caused consumers to save money and switched to more affordable food. In this context, US importers are more cautious and tend to decrease orders. Inventory is high, product quality is decreasing, storage costs are high, producing countries are in the harvest season, supply will increase, shrimp prices will continue to fall. High inventory, declining product quality, high storage costs, increased supply will together cause the shrimp prices to fall.
Furthermore, rising US interest rates have led to increased lending rates, surpassing those in Vietnam and adversely impacting the demand for shrimp imports in this market. However, the demand for US shrimp imports may increase slightly from August onwards to serve the demand for year-end festivals, driven by the year-end festival season. Shrimp prices also increased slightly because of large inventories, inflation and abundant supply from Ecuador and India.
Fishery production is estimated at 2,370.4 thousand tons in the second quarter of 2023
Fishery output in the second quarter of 2023 was estimated at 2,370.4 thousand tons, up 1.6% over the same period last year. Specifically, fish reached 1,680.5 thousand tons, up 1.2%; shrimp reached 352.3 thousand tons, up 3.8%; other aquatic products reached 337.6 thousand tons, up 0.9%.
Generally, in the first 6 months of 2023, fishery output was at 4,270.5 thousand tons, up 1.7% over the same period last year.
Aquaculture production in the second quarter of 2023 reached 1,311.2 thousand tons, up 2.5% over the same period last year. Specifically, fish reached 851.2 thousand tons, up 1.8%; shrimp reached 313 thousand tons, up 4.2%. In the first 6 months of 2023, aquaculture production was estimated at 2,336.4 thousand tons, up 3% over the same period last year.
Although the price of raw pangasius in the Mekong Delta provinces tends to decrease in the first 6 months of 2023 due to low demand from import markets, pangasius output increased over the same period last year. Pangasius production in the second quarter of 2023 was estimated at 436.9 thousand tons, up 1.6% over the same period last year; in the first 6 months of 2023, it was estimated at 789.3 thousand tons, up 2.2%.
Tuna exports can not recovered yet
Vietnam's tuna exports in May 2023 continued to decrease by 26% over the same period in 2022, reaching nearly $70 million. Therefore, in the first 5 months of the year, tuna exports still decreased by 31% compared to the same period last year, reaching more than 317 million USD.
In May 2023 alone, Vietnam's tuna exports to the US, Japan, Canada and Thailand tended to decline. Meanwhile, exports to the EU have recovered.
Among 97 import markets, the US is still the largest single import market of Vietnamese tuna, accounting for 37%. As of May this year, tuna exports to this market reached US$117 million, down 53%. Particularly in May, exports to this market decreased by 45% over the same period last year.
According to FAS.USDA data, in the first 4 months of 2023, total tuna imports into the US reached more than 99 thousand tons, worth US$662 million, down 10% in volume and 23% in value over the same period in 2022. Exports from most tuna suppliers to the US all declined.
Currently, inventories in the US market have gradually decreased, inflation has also decreased, but people are still facing previous debts, so consumer demand has not really recovered. In that context, US importers are more cautious. Therefore, at least by the end of this year, US tuna imports can recover.
Compiled by T.Huong
Source: Vitic/Vasep/vneconomy.vn/