Changing the way looking for markets, seafood businesses expect to increase orders

Vietnamese businesses at the 2024 North American Seafood Exhibition.

Going abroad to pitch

Having just returned from a trip to the US to attend the 2024 North American Seafood Exhibition in Boston in mid-March 2024, leaders of Sao Ta Food Joint Stock Company shared that this is the world's leading seafood exhibition. , bringing together most of the large enterprises in the seafood industry from other countries. At this exhibition, FMC management met many of its largest customers to exchange information and business programs in the near future. The good news is that the company's shrimp products are gaining more and more trust in terms of quality, product design, delivery schedule... through this exhibition, businesses can contact customers to learn more about consumers trends; The strengths and weaknesses of the shrimp industry here as well as the opportunity to learn about new equipment to serve processing lines that suit consumer tastes. This promotional trip of Sao Ta Food Joint Stock Company has achieved the desired results.

This year, there are 17 enterprises processing and exporting pangasius, shrimp and other aquatic products participating in introducing products at the exhibition. The Vietnam Association of Seafood Exporters and Producers (VASEP) has registered an area of 1,600 square feet to organize private booths and joint booths under the National Trade Promotion Program, with many rich connection activities.

According to businesses, participating in large-scale international exhibitions right at the beginning of the year not only opens the door to new year transactions, businesses can also evaluate market trends through specialized seminars. Specializing in areas of interest to the seafood industry in the US and other countries; Participate in food demonstrations of seafood brands launching new product lines aimed at consumer convenience and health.

According to VASEP, in 2023, Vietnamese seafood exports to the US will be worth 1.56 billion USD, down 27% compared to 2022. Despite the sharp decline, the US is still the largest market, accounting for more than 17% of Vietnam's seafood exports. The cause of this market's deep decline is due to many factors such as high inflation, reduced demand, high inventory, price competition with other countries, plus regulations and market barriers such as anti-dumping tax, pangasius inspection program... In January 2024, exports to the US increased by 63%, of which shrimp increased by 77%; Pangasius increased by 83%; Tuna increased by 61%, which is a very positive sign for exports in the near future. Therefore, the North American Seafood Exhibition is a very important opportunity for businesses to grasp and update the situation to maintain and develop the US market. The growth of this market will also create psychology and positively affect surrounding markets, such as Canada, Mexico, Brazil...

With the theme at this year's exhibition: "Vietnam - Sustainable destination for seafood", seafood businesses affirm the development of the industry towards sustainable seafood production, processing and export in compliance with the requirements of Vietnam and the import market during a period when countries are aiming for a green economy and sustainable fishing.

Change your approach to the market

Faced with market changes, as well as price competition, seafood export enterprises have changed their approach and expanded export markets. Unlike every year, the products introduced by Vietnamese enterprises at a number of foreign exhibitions clearly show that the value-added product group has an advantage compared to other countries in the Asian region. According to VASEP analysis, fierce competition in prices of traditional products has promoted Vietnam's transition to value-added production much faster in recent years. If any business changes direction early, it will reap many opportunities in recent difficult years.

Regarding the Japanese market, one of the major markets for Vietnamese seafood, many businesses are currently focusing on exporting value-added products to this market. However, currently the Japanese Yen has lost a record value of 150 Yen per USD, this situation makes purchasing power not strong. FOODEX fair in Japan took place in early March 2024, many shrimp businessmen attended and met with customers to discuss strategies to retain consumers.

Mr. Ho Quoc Luc, Chairman of the Board of Directors of Sao Ta Food Joint Stock Company, said that the benefit is the hard work and diligence of Vietnamese seafood workers who have provided traditional products to people. Japan, with good quality and beautiful designs, no other aquatic shrimp industry can keep up. "This strength is being overlooked by the Indonesian shrimp industry, but Vietnamese businesses have the confidence to maintain the leading shrimp market share in this market" - Mr. Ho Quoc Luc affirmed.

Next, through April, businesses continued to find partners at the International Seafood Fair in Bacerlona (Spain). This market for Vietnamese shrimp products is facing difficulties, consumption will decrease significantly in 2023. The reason is that cheap Ecuadorian shrimp dominates this market. They have the advantage of low prices, at the same time certified safety standards (ASC) to meet Spanish consumer trends, and lower transportation costs.

According to businesses, consumer trends in the EU are ahead of other markets. They require farmed shrimp to meet ASC standards, suppliers have solutions to reduce emissions (farming, processing), have traceability (shrimp feed ingredients, shrimp broodstock...), and require animal welfare ( The broodstock shrimp's eyes are not cut off when artificially spawning, and are raised at moderate density...). This strict requirement is one reason why the Vietnam-EU "highway" already exists but Vietnamese car processing enterprises have not been able to speed up. Surely this situation makes shrimp and pangasius entrepreneurs have to approach this market more thoroughly. At the upcoming fair in Spain, it is expected that Vietnamese businesses' booths will be held on a large scale to attract customers.

This year, the seafood industry still faces many difficulties, in which the export products of Vietnamese shrimp force have never faced such great difficulties as now, but with the proactive promotion of trade abroad, with the following ways: innovation and creativity, businesses will reap worthy results.