Enhancing competitive advantages for Vietnam’s shrimp exports

Vietnam’s shrimp exports kicked off 2025 with a 28% increase, reaching USD 311 million in revenue. This positive growth is expected to continue, driven by strategic adjustments in production and expansion into potential markets such as Australia, the Middle East, the UK, and South Korea.

Identifying key challenges

In January 2025, shrimp remained the fastest-growing seafood export, with a total value of USD 273.35 million, accounting for 35.3% of Vietnam’s seafood exports. VASEP attributes this growth primarily to rising demand from China ahead of the Lunar New Year, especially for high-end fresh seafood like lobster.

Lobster exports to China alone hit USD 70 million, making up nearly half of Vietnam’s total seafood exports to China and growing ninefold compared to the same period in 2024. Total shrimp exports to China and Hong Kong in January reached USD 118 million, marking a staggering 179% increase year-on-year. The strong surge in lobster exports significantly contributed to the overall 28% growth in shrimp exports.

Shrimp exports to the European Union (EU) also showed positive momentum, increasing by 15% to over USD 34 million. Smaller markets such as the UK and Switzerland also recorded growth.

However, despite this promising start, VASEP warns that shrimp exports will face several challenges in the coming months. In China, shipments of common shrimp varieties like whiteleg shrimp and black tiger shrimp may slow down due to increased competition from domestic seafood, particularly as U.S. market dynamics shift. Nevertheless, demand for high-end products like lobster remains strong, presenting opportunities for Vietnamese exporters.

In the U.S. market, exporters continue to grapple with risks related to countervailing duties and anti-dumping tariffs. Additionally, uncertainty surrounds potential new tariff policies under President Trump, making it difficult to predict future market conditions.

“While the sharp increase in shrimp exports in January 2025 is encouraging, the Vietnamese shrimp industry still faces significant hurdles, particularly the risk of raw material shortages due to disease outbreaks, unfavorable weather, and uncertainties in the U.S. market. If the supply issue is not addressed, maintaining this growth momentum in February will be challenging,” said VASEP.

Focusing on value-added processed shrimp

To achieve Vietnam’s 2025 export targets, VASEP emphasized the need for effective and practical policy support for seafood enterprises. This includes financial assistance, resolving issues related to regulatory compliance costs, and streamlining administrative procedures.

Additional measures should include credit support for shrimp farmers through supply chain linkages, price controls on shrimp feed, and stabilization of production costs. Strengthening quality control of shrimp seed and expanding traceability systems through farming area codes are also crucial. Furthermore, investment in species diversification beyond whiteleg shrimp is necessary while maintaining the country’s strength in black tiger shrimp farming.

To reduce reliance on the U.S. market, Vietnamese exporters should diversify their market presence, targeting regions such as the EU, Japan, and ASEAN. Prioritizing high-end processed shrimp products will help create added value and enhance product quality to meet global standards.

In 2024, Vietnam’s shrimp export landscape experienced a major shift as China surpassed the U.S. to become the country’s largest shrimp importer. Vietnam’s shrimp exports to China reached USD 843 million, a 39% increase from 2023. This shift underscores changing global demand patterns, as China increased its imports from Vietnam while reducing purchases from competitors like Ecuador. This trend presents a significant opportunity for Vietnam’s seafood industry.

“In the U.S., consumers prefer breaded shrimp and crispy coated shrimp, while in China, steamed black tiger shrimp with its vibrant red color remains highly popular. Processing technology plays a vital role in producing high-quality products with appealing presentations that meet consumer preferences,” VASEP noted.

From an industry perspective, Ho Quoc Luc, CEO of Sao Ta Foods, highlighted the intensifying global shrimp market competition. He stressed that deep processing is the key to securing a competitive edge and ensuring sustainable growth.

According to Luc, investments in modern technology have enabled Vietnam to withstand pricing pressures from low-cost shrimp suppliers like Ecuador, India, and Indonesia. As a result, Vietnamese shrimp continue to hold a strong position in the global market, even outpacing competitors in securing market share.

Source: https://vietfishmagazine.com/