Shrimp exports are expected to reach USD 4 billion in 2024

According to VASEP, the shrimp industry targets export turnover of USD 4 billion in 2024, an increase of 5% compared to 2023.

According to Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam’s shrimp exports in 2023 reached USD 3.4 billion, a decrease of 22% compared to 2022 due to the decrease in purchasing power and price of shrimp exported to markets.

In particular, the US is the largest export market for the shrimp industry with a value of USD 682 million, a decrease of 15% compared to 2022, accounting for 20% of total shrimp exports. Since July 2023, shrimp exports to the US have continuously gained double-digit growth, this is considered a sign of recovery in this market.

Statistics show that US shrimp imports in November 2023 also recorded the 5th consecutive month of growth. Inventories are decreasing, US economic indicators are gradually improving, and demand is higher for the end of the year.

In addition, inflation in the US has decreased quite sharply in 2023. As of November 2023, inflation has decreased to 3.1%, from a peak of 9.1% in June 2022. The US Federal Reserve (FED) has issued messages about stopping interest rate increases and moving forward to consider reducing interest rates in 2024.

“Vietnamese shrimp exports to the US will increase slightly in 2024 when food demand improves, inflation cools down, and retail sales in the US recover,” VASEP forecasts.

Despite the above positive indicators, the US is still wary of geopolitical risks, including the conflict in Ukraine, which could potentially disrupt the grain market and cause inflation to return. In the Middle East, Israel predicts that the conflict with Hamas forces will last for many months, increasing the risk of escalation in the region.

Recently, the American Shrimp Processing Association (ASPA) submitted a request to investigate anti-dumping tax on imported shrimp, including Vietnam. There are no results yet, but Vietnamese shrimp exports to the US will be affected in the first half of 2024.

In addition, Red Sea tensions in early 2024, causing shipping rates to the US to increase, are also an obstacle for businesses exporting to the US in 2024.

(Source: https://www.agribank.com.vn/)