Vietnamese fisheries sector navigating headwinds in US market

The US remains Vietnam's largest seafood export destination, with annual export values ranging between 1.5 billion and 2.1 billion USD over the past five years. Therefore, economic and political changes in the market will affect the Southeast Asian nation's aquatic shipments.

According to communications director at the Vietnam Association of Seafood Exporters and Producers (VASEP) Le Hang, amidst the ongoing US-China trade tensions, US importers are actively seeking alternative seafood sources and Vietnam is well-positioned to fill this gap due to its improving product quality and reputation in shrimp and pangasius (catfish) exports.

However, Vietnamese exporters should stay prudent with anti-dumping and anti-subsidy taxes and tough trade barriers in this market that could result in a more intense competition with such rivals as India, Ecuador, and Indonesia, she said, adding rigorous quality standards set by the US Food and Drug Administration require firms to strictly comply with sustainable production and food safety protocols.

The shrimp sector has particularly felt the brunt of the US’s tariffs. Chairman of Sao Ta Foods Joint Stock Company Ho Quoc Luc said that Vietnam is currently the fourth largest shrimp supplier for the market, holding an approximately 8% market share, behind India (31%), Ecuador (26%), and Indonesia (17%).

He described high prices as the most significant disadvantage for Vietnamese shrimp, adding if import duties remain unchanged, Vietnam could maintain its current market share in the US but if the country levies import taxes between 3 and 5%, exporters would find it hard to uphold their presence there.

Without price advantages, Vietnamese businesses must concentrate on intensively processing goods to add value not subject to taxation so as to maintain a foothold in the US market.

Kim Thu, a shrimp market expert, said Vietnam gained 646 million USD from shrimp export in January – October, up 10% year-on-year. The US remained Vietnam's single largest shrimp import market, accounting for about 20% of total export value.

Shrimp export under the incoming Donald Trump administration could face both opportunities and challenges, depending on the level of tariffs that it could impose. Previously, Trump proposed a 10% tariff on all imported goods to the US.

US consumers are increasingly interested in sustainability, environmental protection, and social responsibility. Vietnamese firms should adhere to international standards like GlobalGAP and those of the Aquaculture Stewardship Council and Marine Stewardship Council. They also must ensure transparency regarding production process and origin of materials to build consumer confidence, Thu said.

Looking ahead to 2025, VASEP said the Vietnamese seafood industry may encounter new challenges from the US’s new policies. Successful navigation quires meticulous preparation as well as capitalisation on existing free trade agreements to expand markets./.