As Vietnam’s shrimp industry faces potential tariff risks from the US, diversifying export markets has become urgent. Among alternatives, Australia is considered a promising, stable market well-suited for value-added, deeply processed Vietnamese shrimp products.
Stable Growth
Australia is currently Vietnam's fifth-largest single shrimp export market, accounting for about 7% of total export value. In the first four months of 2025 alone, exports to Australia reached nearly USD 77 million, up 8% year-on-year. From 2019 to 2024, export revenue rose steadily from USD 127 million to over USD 240 million.
Whiteleg shrimp made up 95% of total export volume, with value-added products contributing 40% of total export turnover. Items like shrimp dumplings, skewered shrimp, steamed shrimp, and peeled frozen shrimp are increasingly favored by Australian consumers.
Benefits from FTAs and Strategic Partnership
Vietnam and Australia are members of major trade agreements such as CPTPP, RCEP, and AANZFTA. These FTAs not only reduce tariffs but also simplify customs procedures and align standards, making trade more transparent and accessible.
The elevation of bilateral relations to a Comprehensive Strategic Partnership in March 2024 also strengthens political trust and expands cooperation opportunities in seafood and agriculture.
Opportunities for Deep-Processed Shrimp
Though Australia’s population is only around 25.7 million, it is a high-potential market. Consumers are willing to pay premium prices for high-quality, convenient, and traceable foods. Especially among younger generations and high-income groups in cities like Sydney and Melbourne, there is growing demand for nutritious, easy-to-cook or ready-to-eat seafood products—an area where Vietnam excels.
The large Vietnamese community in Australia (approx. 300,000 people) also plays a role in promoting Vietnamese shrimp products.
Processed seafood consumption is growing 6–8% annually, driven by health-conscious lifestyles and flexitarian diets, presenting further opportunities for Vietnamese shrimp.
Competitive Advantages
Vietnamese shrimp competes directly with products from Thailand, Indonesia, and India in Australia, particularly in the low-cost, unprocessed segment. However, Vietnam’s strengths lie in product quality consistency, diverse offerings, and advanced processing capabilities.
Investment in technology by Vietnamese companies has allowed them to maintain a strong international presence despite pricing pressures.
Challenges in Logistics and Technical Barriers
Despite many advantages, Vietnamese exporters face hurdles:
-
Australia enforces strict biosecurity standards. Imported shrimp must meet antibiotic, microbiological, and virus-free requirements.
-
High logistics costs and long shipping times (14–18 days) also pose challenges. Some businesses have optimized cold supply chains via hubs in Singapore or Darwin.
To boost exports to Australia, businesses suggest enhancing specialized trade promotion, especially in major states like New South Wales and Victoria; investing in cold logistics for long-distance transport; and advocating for technical and administrative simplifications on the Australian side.
They also propose developing private-label products for major Australian retailers such as Woolworths and Coles, improving digital traceability, and obtaining international certifications like ASC and BAP to boost competitiveness.
Australia – A Potential Buffer Market Amid US Risks?
If US market access becomes more difficult due to new tariffs, Australia may serve as a “shock absorber” to stabilize Vietnam’s shrimp exports. Unlike the US, Australia’s political environment is more stable, and its legal system is transparent, offering reduced long-term risk for Vietnamese businesses.
With supportive political ties, rising demand for processed shrimp, and favorable FTAs, Australia could become a key destination in Vietnam’s export diversification strategy.
It is expected that with the message of “Proactive Adaptation – Innovation – Sustainable Development” from VASEP's 7th General Assembly (2025–2030) on June 12, shrimp exports to markets like Australia will continue to grow, contributing to the seafood industry's goal of reaching USD 14–16 billion by 2030.
