New directions for two key export products of the seafood industry

	Việt Nam's seafood industry needs to adapt to market trends
	Improve competitiveness and sustainable development of the seafood industry

Processing pangasius for export at Vinh Hoan Joint Stock Company. Photo: Provided by the company

Pangasius fish exports reached near USD1 billion

According to Vietnam Customs, China and Hong Kong (China) continue to be the largest consumers of Vietnamese pangasius, contributing 28% to Vietnam's total export value to markets. June 2024 is the month with the highest export turnover of Vietnamese pangasius to China and Hong Kong since the beginning of this year, with nearly USD 56 million, up 16% compared to June 2023. In total, pangasius exports in the first 6 months of this year reached USD 918 million, up 5% over the same period last year. Thus, pangasius enterprises are about to reach the USD 1 billion.

According to analysis by the Vietnam Association of Seafood Exporters and Producers (VASEP), the US is the second largest market after China for importing the most Vietnamese pangasius. In June this year, the US consumed USD 27 million of pangasius, up 22% compared to June 2023 while decreasing by 9% compared to the previous month. The export value of Vietnamese pangasius in the first 6 months of this year to the US reached USD 160 million, up 14% over the same period last year. Along with the US market, Vietnamese pangasius exports to the CPTPP market also recorded positive growth in the first half of 2024 with an export value of USD 128 million, up 11% over the same period last year. In particular, in June 2024 alone, the export value of pangasius to this market reached USD 25 million, up 21% compared to June 2023.

In addition, a number of other individual markets also recorded positive growth in Vietnamese pangasius imports in the first 6 months of 2024, including: Brazil reached USD 52 million, up 42%; Thailand reached USD 30 million, up 9%; Colombia reached USD 22 million, up 40%; Saudi Arabia reached USD 20 million, up 17%...

According to pangasius exporting enterprises, after a difficult year in 2023, in the first half of this year, the whole industry focused on and took advantage of every export opportunity to the markets. In the second half of this year, consumption demand is expected to continue to increase as countries begin to plan for festivals and holidays. Pangasius export prices are also expected to recover and gradually increase. In 2024, Vietnam's pangasius exports are expected to reach USD 1.8 billion, an increase of 6% compared to 2023.

Shrimp businesses build their own strategies

The shrimp industry is facing two major problems: low shrimp export prices to markets due to competition with Ecuadorian and Indian shrimp, and complicated and unresolved diseases in farmed shrimp, which are likely to cause a shortage of shrimp raw materials in the second half of 2024. According to market rules, from the third quarter onwards, importers will increase purchases to prepare supplies for the holidays and Tet at the end of the year. Therefore, shrimp prices from the third quarter onwards are likely to improve compared to the present, but are unlikely to increase sharply.

Faced with many difficulties, shrimp exporting enterprises are always proactive in having their own strategies. For example, although the US market has a large consumption capacity, Vietnamese shrimp is at a disadvantage in competing with cheap shrimp from Ecuador and India and recently, freight rates have increased sharply. Therefore, most enterprises have reduced the proportion of exports to this market, focusing on markets such as Japan, Korea, Australia, China, etc. Some enterprises are proactive in farming activities, proposing farming and harvesting solutions to sell at better prices. In June 2024, Vietnam's shrimp exports recorded positive growth compared to the same period last year and increased higher than the previous month. The value of shrimp exports this month reached USD 344 million, an increase of 5% over the same period in 2023. In the first 6 months of the year, the export value reached nearly USD 1.6 billion, an increase of 6%.

According to experts, shrimp enterprises are currently trying to find growth drivers. In the links that create the shrimp value chain, enterprises are particularly interested in the processing and export stages. According to Mr. Ho Quoc Luc, Chairman of the Board of Directors of Sao Ta Food Joint Stock Company, the growth driver of the shrimp industry is to focus on market research and penetration; listening to consumer needs and trends to promptly respond and attract. However, this driver will be hindered if prices are not affordable. That is the current bottleneck of the shrimp industry because the cost of our farmed shrimp is still too high, surpassing the world price. The reason why the cost of farmed shrimp is still too high is due to many factors, such as the quality of shrimp seeds, farming environment, farming capital, etc

According to Mr. Luc, to overcome difficulties, export processing stages must be more proactive than ever, such as solutions to research new products, even meeting each festival and event; finding new customers through perfecting themselves to meet the requirements of large, high-end distribution systems, such as implementing sustainable solutions such as emission reduction roadmaps, ensuring animal welfare, ensuring the use of recycled materials... and this commitment must be monitored and certified by a third party...

Seafood enterprises propose solutions to address specialized inspection issues

In the second half of the year, businesses expect better signals from major import markets, inventory problems and transportation difficulties to ease, demand to recover and prices to increase again. If all expectations follow a favorable scenario for shrimp, everything will change for the better, ensuring the shrimp industry's 2024 target.