Vietnam's shrimp industry is experiencing a surge in global demand, with positive growth across key export markets. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), by the end of September 2024, shrimp exports have shown impressive gains: an 8% increase to the U.S., a 15% rise to Europe, and a remarkable 26% jump in shipments to China and Hong Kong. This boost has been accompanied by a steady rise in export prices since June, particularly to the U.S. and European markets. Vietnamese shrimp is not only in demand but also increasingly valued by global buyers—a trend that's expected to continue.
Rising Prices in Raw Shrimp Signal Strong Demand
The increase in shrimp prices isn’t limited to exports; prices for raw whiteleg shrimp (in sizes 50, 80, and 100 pcs/kg) have been climbing steadily from July through September. This increase reflects robust global demand, with buyers looking to Vietnam to fulfill rising seafood needs. The price trend for raw shrimp remains optimistic as we head into the fourth quarter, presenting promising opportunities for Vietnamese producers.
Year-End Demand and Supply Considerations
However, with higher demand comes the challenge of ensuring a steady supply of raw materials. VASEP has cautioned that a possible shortage of raw shrimp may arise due to China's increased purchases as it prepares for the upcoming Lunar New Year and New Year celebrations. This spike in demand could impact supply for Vietnamese businesses aiming to meet year-end production demands. As global buyers seek to secure their shrimp stocks, Vietnamese suppliers are strategically positioned to leverage this seasonal demand while managing resources carefully.
Competitive Edge in Global Markets
The U.S. market, in particular, highlights Vietnam’s growing competitive edge. Data from the U.S. National Oceanic and Atmospheric Administration (NOAA) reveals that Vietnam's shrimp exports to the U.S. are outpacing those of major competitors, including India and Ecuador. Despite ongoing challenges in the global shrimp market, such as sluggish price recovery and competitive pressures, Vietnam’s processed shrimp products continue to command a strong market presence, offering superior value-added options that meet diverse customer demands.
What Lies Ahead for Vietnamese Shrimp Exports
The future is bright for Vietnam’s shrimp industry as global demand continues to build. While challenges remain—such as managing raw material supplies and navigating a competitive landscape—Vietnamese shrimp producers have proven their resilience and adaptability. By focusing on value-added products and expanding market reach, Vietnam is well-positioned to capitalize on the growing interest from international markets.
Stay tuned for more insights and updates on Vietnam’s thriving seafood industry as we move into a promising fourth quarter.
Source: Vasep
