Promote deep processing, increase product competitiveness
According to Vietnam Association of Seafood Exporters and Producers (VASEP), as of February 15, 2024, Vietnamese shrimp exports to Australia reached more than 23 million USD, an increase of 48% over the same period in 2023. Australia is the fifth largest single market for Vietnam's shrimp imports, accounting for 7.5% of the total value of Vietnam's shrimp exports to markets.
In 5 years (2019-2022), Vietnamese shrimp exports to Australia grew continuously from 127 million USD in 2019 to 272 million USD in 2022 with proportion of Vietnam's total shrimp exports increasing from 3.7%/year in 2019 to 6.3%/year in 2022.
White-legged shrimp accounts for the largest proportion of Vietnam's shrimp product structure exported to Australia, accounting for 95%, black tiger shrimp accounts for a small proportion of 0.2% and the rest are other types of shrimp, accounting for 4.8%.
Out of total shrimp products exported to the Australian market, value-added processed shrimp (HS code 16) accounts for 40% of total export value of shrimp products to this market. Processed shrimp products exported to this market mainly include shrimp dumplings, ginger shrimp dumplings, frozen white shrimp with fried breaded meat, frozen white shrimp on skewers...
In 2023, Vietnamese shrimp exports to Australia reached 233 million USD, down by 14% compared to the previous year. A decrease of 14% decrease in shrimp exports to Australia is still lower than other main markets such as Japan, EU, Korea and Canada...
In 2023, shrimp exports to Australia are in the general decline trend of shrimp exports to other markets. Australia is also negatively affected by high inflation, causing purchasing power to decline.
According to VASEP, although it is only the 5th largest shrimp consumption market in Vietnam, Australia is considered a potential market, especially when the demand for processed shrimp in this market is increasing. Meanwhile, shrimp processing level of Vietnamese enterprises is constantly increasing with new products becoming more and more abundant.
Focusing on promoting its strengths, businesses will succeed in major consumer markets including Australia.
According to Mr. Le Van Quang - General Director of Minh Phu Seafood Group Joint Stock Company, shrimp processing and exporting enterprises are required to invest in more advanced technology to create more deep-processed, affordable, high value products in conquering international markets.
Mr. Ho Quoc Luc - Chairman of Board of Directors of Sao Ta Food Joint Stock Company - shared that, thanks to investment in modern technology, despite facing strong competitive pressure from cheap shrimp from Ecuador and India, Indonesia, Vietnamese shrimp can still stand firm, even accounting for the largest market share in the international market.
Therefore, to maintain its export position and cope with price difference of raw shrimp, the Vietnamese shrimp industry promotes its strengths in deep processing and diversifying deep-processed products to maintain market share.
Expectations are that shrimp exports to the Australian market will achieve positive results
Australia is the 13th largest economy in the world with an import turnover of nearly 250 billion USD/year. Over the past time, Vietnam - Australia relations have continuously developed and been effective in all fields. In particular, economic and trade cooperation has made remarkable progress.
Australia is currently one of Vietnam's 7 largest trading partners, conversely, Vietnam is also Australia's 10th largest trading partner.
Vietnam and Australia are common members of at least 3 free trade agreements (FTAs), including: ASEAN - Australia - New Zealand FTA (AANZFTA), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and most recently Regional Comprehensive Economic Partnership (RCEP).
Although population size is quite small, only 25.7 million people, this is a potential market because people are willing to pay high prices for quality products and are open to imported goods.
Although there are many advantages, Australia is also a demanding market with a system of strict standards for imported goods. In addition, geographical distance leads to high logistics costs and long shipping times, which are also a challenge for Vietnamese seafood businesses when exporting to this market. Therefore, businesses must be proactive in exploiting and developing markets and have long-term business plans to promote exporting goods to Australian market.
On occasion of Special Summit commemorating 50 years of ASEAN-Australia relations and Prime Minister Pham Minh Chinh's visit to Australia in the early days of March, two Prime Ministers of two countries agreed to upgrade relationship between ASEAN and Australia. Vietnam-Australia relationship has been upgraded to a Comprehensive Strategic Partnership, equivalent to relationship between Vietnam and the US, Japan, Russia, India and China. Two sides will promote market access measures and facilitate trade for both countries in the fields of agriculture and fisheries. On sidelines of the Conference, Vietnam Trade Promotion Agency and Australian Trade and Investment Agency signed a Memorandum of Cooperation to strengthen cooperation in field of trade promotion and investment promotion between two countries.
Signing of Memorandum of Understanding will help two parties create a stable, sustainable and methodical cooperation mechanism; From there, establish a plan to implement trade and export promotion activities in the coming time, contributing to promoting cooperation between Vietnam Trade Promotion Agency and Australian Trade and Investment Agency in particular, thereby strengthening economic and trade cooperation relationship between Vietnam and Australia in general.
According to Trade Promotion Department, in 2024 to promote trade promotion activities and export to Australian market, Trade Promotion Department will coordinate closely with Vietnam Trade Office in Australia in process of providing Updated information on the Australian market situation; opportunities and challenges when exporting to the market. At the same time, provide recommendations to support Vietnamese businesses in enhancing their capacity, competitiveness and brand to promote export of Vietnamese products and goods to Australian market.
Also within framework of this Summit, Australia also announced a plan to increase investment in Southeast Asia, spending 1.3 billion USD to promote trade in this region with a rising economy.
With positive information in cooperative relationship between two sides, economic situation is gradually improving and it is expected that shrimp exports to the Australian market in 2024 will achieve positive results.

Source: Vitic/ congthuong.vn