Vietnamese shrimp exports to US market drop by 7% in Q2

The average export price of frozen white-leg shrimp to the US in the first half of the year ranged between US$9.6 and US$10.1 per kilo, while the price of black tiger shrimp fluctuated from US$14.9 to US$19.3 per kilo.

Insiders pointed out that shrimp prices will continue to decrease due to the purchasing power of US importers remaining low and high freight rates continuing to rise.

Furthermore, the US Department of Commerce (DOC) has recently launched an anti-subsidy investigation into frozen warm-water shrimp from four major shrimp suppliers to the US, including India, Ecuador, Vietnam, and Indonesia, all of which are anticipated to affect Vietnamese shrimp exports moving forward.

According to experts, despite facing numerous challenges, there remains ample room for Vietnamese shrimp exports to the market.

The US will decide whether or not to upgrade the nation to a market economy this August. If the outcomes are positive, then there will be bright prospects ahead for Vietnamese shrimp in the demanding market.

Moreover, Ecuador and India were being warned about antibiotic residue and labour issues, both of which are anticipated to create a wealth of opportunities for Vietnamese shrimp in the time ahead.

The US’ shrimp demand is forecast to increase slightly ahead in the third quarter with prices rising slightly from July onwards thanks to year-end festivals which serve to push up the purchasing power of importers.

Experts have duly advised businesses to further improve product quality, reduce production costs, and improve management processes in an effort to make further inroads into the market.

Vietnamese firms are also recommended to promote exports to other potential markets such as Europe, Japan, the Republic of Korea, and China to avoid dependence on the US market.

In the long term, the local shrimp industry is required to build a comprehensive development strategy, improve farming and processing stages, as well as developing strong brands in a bid to increase the added value of shrimp products.

Simultaneously, local firms are required to strengthen co-operation activities with international partners in order to absorb advanced technologies, thereby further enhancing the competitiveness of the Vietnamese shrimp industry within the global market.