Vietnam aims to achieve USD 9.5 billion in seafood exports in 2024

As forecasted, many challenges will continue to dominate seafood production and exports, slowing down the recovery process. Therefore, the Ministry of Agriculture and Rural Development has adjusted the seafood export target for 2024 to reach $9.5 billion.

Statistics from the Directorate of Fisheries show that the total seafood production in 2023 is estimated to reach 9.269 million tons, a 2% increase compared to the previous year. Among these figures, the wild-caught volume is expected to be 3.861 million tons, similar to the previous year, while the aquaculture output is over 5.408 million tons, a 3.5% increase from 2022.

However, according to VASEP, due to high inflation, reduced demand, large inventories, and decreasing export prices, seafood exports have declined. By the end of November 2023, seafood exports reached $8.27 billion, down 19% from the same period in 2022. For the entire year 2023, seafood export turnover reached $9.2 billion, down 17% from 2022. This includes approximately $3.45 billion for shrimp, around $1.9 billion for pangasius, about $0.8 billion for processed products, and roughly $0.9 billion for tuna.

Major markets such as the US experienced the most significant decline, 32%, while China decreased by 15%, and Japan, South Korea, and the EU decreased by 10-20%. Some emerging markets showed growth, but their contributions were not significant.

With the results in 2023 being only 85 – 90% compared to 2022, Sao Ta Food Joint Stock Company had to adjust its business plan, with a 17.5% decrease in revenue and a 25% reduction in pre-tax profit compared to the initial plan. Given the current market situation, the shrimp industry is also maintaining similar targets for 2024.

In response to this situation, the Ministry of Agriculture and Rural Development has reduced the seafood export target for 2024 to only $9.5 billion (compared to the $10 billion target in 2023), with a total output of 9.22 million tons and maintaining an aquaculture area of 1.3 million hectares.

The Directorate of Fisheries stated that 2024 is expected to face many difficulties, particularly when the European Commission maintains a yellow card warning for Vietnam’s seafood products. In addition, the recovery of import demand is not yet evident, strong competition from other markets and high inventories are also challenges. Inflation may also impact seafood consumption in 2024, leading to a price decline for many seafood species in the first half of the year.

In 2024, the Directorate of Fisheries will continue to implement the strategy of reducing exploitation and increasing aquaculture, developing sustainable seafood economics, adapting to climate change, enhancing competitiveness for seafood products, and strengthening exports.

(Source: https://vietfishmagazine.com/)