Raw material shrimps export situation in 2020

HungHau Agricultural News

The shrimp industry has played an important role in exporting Vietnamese seafood to the world during the past two decades. Every year, the shrimp industry contributes about 40-45% of the total seafood export value, equivalent to 3.5-4.0 billion USD. Vietnam has become the second largest shrimp supplier in the world with the export value accounting for 13-14% of the total shrimp export value of the world.

According to VASEP, Vannamei shrimp accounts for 70.1% of Vietnam’s total shrimp exports, Black Tiger shrimp accounts for 18.2%, the rest is Sea shrimp. The total value of Vannamei shrimp exports increased by 11% while Black Tiger shrimp decreased by 15%. Exports of processed Vannamei and raw/fresh/frozen products increased by 18% and 6%, respectively. Export of processed Black Tiger shrimp increased 32% while raw/fresh/frozen products decreased by 18%. Dry sea shrimp exports increased mostly by 100%. During the Covid-19 pandemic, the export of reasonably priced Vannamei shrimp increased better than Black Tiger shrimp, and processed shrimp products were consumed more than fresh/raw/frozen products.

The United States is the leading market for importing Vietnamese shrimp, accounting for nearly 23.6%. Vietnam’s shrimp exports to the U.S. in August 2020 grew well by 28.6% compared to August 2019. In the first eight months of this year, shrimp exports to this market reached over 544 million USD, up 32% over the same period last year. Despite the Covid-19 pandemic, Vietnam’s shrimp exports to the U.S. remained positive in all the months. The U.S. is considered the market with the most stable demand for importing Vietnamese shrimp.

The EU is Vietnam’s fourth largest shrimp importer after the US, Japan and China, accounting for 13.6% of Vietnam’s total shrimp export value. Vietnam shrimp exports to the EU decreased continuously from March to June this year. After a slight growth in July, Vietnam’s shrimp exports to the EU recorded a 15.7% growth rate of 58.8 million USD in August. In August 2020, Vietnam’s shrimp exports to Netherlands and Belgium grew 15% and 41% respectively compared to August 2019. In the first eight months of this year, shrimp exports to the EU reached $ 313.7 million, down 2% from the same period last year. The EVFTA Agreement, which took effect from the beginning of August 2020, has brought a lot of expectations for Vietnam’s shrimp exports to the EU market in the remaining months of 2020.

As soon as the EVFTA comes into effect, the export tax of some frozen shrimp products from Vietnam to the EU will be 0%, and processed shrimp will have a tax reduction schedule of 5-7 years. While major competitors in the EU market such as Thailand are not entitled to GSP, without FTA, the basic tax rate is 12%; India has no FTA, so it is subject to GSP 4.2% tax; Indonesia is subject to GSP 4.2% tax.

HungHau Agricultural News
Vietnamese And EU HungHau Agricultural

The EVFTA Agreement will give Vietnamese enterprises the opportunity to enter the European market, a large market with about 500 million consumers. In reverse, Vietnamese consumers also have access to European innovative and high-quality goods and services. EVFTA also contributes to promoting trade, investment and economic growth of Vietnam and makes the country an attractive destination for European investors in Asia.

In the first 6 months of the year, due to the Covid-19 situation affected the entire economic, in which the shrimp export sector was also affected, causing the export volume decreased. In recent months, Vietnam has been in relatively strict control of the pandemic, the economy and export have been improved, and at the time the EVFTA Agreement comes into effect, facilitating export to European markets.