AsemconnectVietnam - Raw shrimp prices and export prices both tend to increase, causing shrimp exports to accelerate in many major markets.

Prices of shrimp in Vietnam skyrocket
According to shrimp exporters, the boom in shrimp prices in Vietnam comes as the economy seems to be recovering very quickly after more than 16 months of stagnation.
According to Ms. Kim Thu, a shrimp industry expert from the Vietnam Association of Seafood Exporters and Producers (VASEP), in the second week of September of 2024, the price of whole chilled white-leg shrimp increased by about 20% compared to the same period of 2023. Compared to early August of 2024, the price of 30-count and 40-count shrimp increased by about 40%. The price of the smaller shrimp increased by 13%-19% compared to early August.
Vietnam's white-leg shrimp export prices to the US have tended to increase since February this year. White-leg shrimp export prices to the Japanese market are also expected to increase due to the continued popularity of Vietnam's value-added, processed products and the appreciation of the yen.
The current increase is due to the possible reduction in harvest output following Vietnam's typical seasonal cycle. However, the main difference is the recovery in demand from the United States, Vietnam's largest export market for white-leg shrimp. Vietnam's shrimp exports hit a two-year high in July of 2024, thanks to a 23% year-on-year increase in exports to the North American country, which is expected to continue to maintain growth momentum throughout the third quarter.
As Ecuadorian and Indian shrimp face warnings about antibiotics and labor issues, new opportunities may emerge for Vietnamese shrimp. The prices for raw white-leg shrimp in Vietnam, which is processed into higher-end products, remain stable, while the average price of larger black tiger shrimp is likely to increase slightly.
According to a representative of Sao Ta Food Joint Stock Company, although market demand was more positive in August and shrimp prices also tended to be positive, the Vietnamese shrimp industry still faced many challenges, especially in the farming stage when facing the epidemic; at the same time, it is dealing with two shrimp lawsuits from the United States. The shrimp industry needs the cooperation of management agencies and the entire chain to ensure the source of raw materials at the end of the year for processing and export.
Breakthrough in many markets
In August of 2024, Vietnam's shrimp exports reached 404 million USD, an increase of 20% compared to August of 2023. Shrimp exports in August continued to record the highest value since the beginning of the year and recorded the best growth since February this year. In the first 8 months of this year, shrimp export turnover reached more than 2.4 billion USD, an increase of 10% over the same period last year.
In August of this year, shrimp exports continued to record double-digit growth in most major consumer markets such as the US, China, and the EU. Markets such as Japan and South Korea recorded a slight increase.
Reduced inventories and the need to import goods for the year-end holidays have led to increased imports in markets. In addition, raw shrimp prices from producing countries around the world as well as Vietnam have tended to increase, positively affecting shrimp export prices.
For the US market, Vietnam's shrimp exports to the US increased by 21% to 91 million USD in August. In the first 8 months, shrimp exports to this market reached 482 million USD, up by 7% over the same period last year.
Inventory in the US has decreased, retailers need to replenish inventory before the year-end holiday season. Positive information about the US economy has also helped Vietnam's shrimp exports to the US to be more positive.
For the Chinese and Hong Kong markets, Vietnam's shrimp exports to this market continued to recover in August with double-digit growth compared to the same period last year. In the first 8 months, shrimp exports to this market reached 477 million USD, up by 21% over the same period last year.
Vietnam's shrimp exports to China increased again thanks to increased import demand from this market. In addition, Ecuador (the main competitor of Vietnamese shrimp in the Chinese market) faced strict inspections from China and some shipments were rejected in June due to sodium metabisulfite residues. This affected Ecuador's shrimp exports to China.
With these positive signals, VASEP believes that Vietnamese seafood enterprises need to continue to maintain product quality and improve competitiveness to achieve the target of 10 billion USD in export turnover in 2024.
CK
Source: VITIC/ haiquanonline.com.vn