According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the shrimp industry is facing competition with products from Ecuador and India, while the disease affecting farmed shrimp is evolving in a complex manner and has not yet been resolved, which may lead to a shortage of raw materials for processing in the second half of 2024.
VASEP forecast that in the remaining months of this year, shrimp exporters from Ecuador, India, and Indonesia will focus on the Chinese market due to the high tariffs imposed by the US. Consequently, Vietnamese shrimp exports to China will face price pressure, particularly for the black tiger and white-leg shrimp products.
Although the US market has a large consumption capacity, Vietnamese shrimp exporters face disadvantages in competing with cheaper shrimp from Ecuador and India, and the significant increase in shipping costs in recent times.
Most companies have reduced their exports to the US and are shifting focus to closer markets such as Japan, the Republic of Korea (RoK), Australia, and China. Some companies are proactively managing their farming operations and implementing strategies for cultivating and harvesting to achieve better prices.
Ho Quoc Luc, chairman of the Board of Directors of the Sao Ta Food Joint Stock Company, stated that targeting the deep-processed shrimp segment could become a competitive advantage for the Vietnamese shrimp industry as many markets favour deep-processed products, including Japan, the RoK, Australia, the UK, the US, and the EU.
In this market segment, Vietnamese shrimp processing and export companies concentrate on attractive packaging and stable quality. While Ecuador and India target the European market, Vietnamese companies will promote exports to the Asian market, especially the RoK and Japan.
According to Le Van Quang, chairman of the Minh Phu Seafood Corp, many processed shrimp products from Vietnam have a higher value. Ecuador and India cannot process in this manner or can only process in limited quantities.
Currently, Vietnam provides many outstanding value-added shrimp products, such as breaded shrimp, fried shrimp, spiced shrimp, butterfly-cut shrimp, skewered shrimp, tempura shrimp, nobashi shrimp, shrimp dumplings, and shrimp ginger dumplings.
