In February 2023, Vietnam’s shrimp exports reached $194 million, down 21% over the same period. Accumulated in the first 2 months of this year, shrimp exports reached 335 million USD, down 40%.
Shrimp exports fell sharply in the first two months of this year due to sluggish market demand, high inflation, high inventories in the US, tight consumption in the EU due to economic difficulties. In addition, the strong decline can be explained as this time last year, shrimp exports increased too strongly (with $ 558 million, up 48% over the same period in 2021).
In February 2023, shrimp exports to main markets decreased from 12% to 35%, some markets showed signs of growth such as China, Australia and France, increased from 4-7%. Among the top 5 main import markets, shrimp exports to the US and EU decreased dramatically; shrimp exports to Japan and Korea also decreased but slightly; exports to China recovered, up 4%.
In the first 2 months of the year, shrimp exports to the US, EU and Japan increased from 51-58 million USD. Exports to Korea reached $46 million, exports to China&HK reached $34 million. Exports to these markets in the first 2 months of this year decreased by 16%-51% over the same period.
Competition between Vietnamese shrimp with Ecuador and India this year is also more intense when Ecuador’s shrimp output in 2023 is expected to reach 1.5 million tons
In terms of shrimp production output, shrimp farming is in a transitional phase towards improving quality, renovating and repairing ponds and lakes, focusing on the quality of seed to limit diseases. Generally, by Feb 2023, whiteleg shrimp production reached 60.2 thousand tons, up 0.5%, black tiger shrimp production reached 31.3 thousand tons, up 0.3%.
In the last months of 2022 and into the beginning of this year, global inflation increased, world economic instability led to a decline in demand. Competition between Vietnamese shrimp with Ecuador and India this year is also more intense when Ecuador’s shrimp output in 2023 is expected to reach 1.5 million tons. The price of imported shrimp in the world market has decreased gradually since the end of 2022 and is forecast to continue to decrease further as supply in 2023 is expected to increase.
In the difficult context, businesses must reduce costs, focus on added value products, and improve product quality. Enterprises can redirect exports to specific products such as shrimp-forest, shrimp-rice or black tiger shrimp, taking advantage of the Chinese market. Enterprises need to focus on changing product structure to actively meet the needs of each market segment.
Regardless of challenges, dynamic businesses that adapt early to new conditions will continue to dominate the market.
Vietnam’s shrimp exports situation will be brighter in the coming months when inventories in the US decrease and the world economic situation changes positively. In particular, the North American Seafood Fair taking place on March 12, 2023 is also expected to help increase shrimp export sales to the US market and other markets.