According to the Vietnam Association of Seafood Exporters and Processors (VASEP), the reason for the sudden drop in "Vietnam's shrimp exports" is that the domestic supply of raw materials begins to be limited, while the consumption demand from other markets is limited. The US and European markets (EU) started to slow down.
Specifically, in the top 4 main markets of Vietnamese shrimp, shrimp exports to the US in June decreased relatively sharply, reaching over US$93 million (down 36% over the same period last year).
According to a representative of VASEP, "inflation in the US is increasing" causing people in this country to tighten their wallets, the demand for shrimp consumption has begun to decline sharply. In addition, difficulties such as high transportation costs, delays in shipping and prolonged lack of containers also lead to more reticent purchases. For the first time in 38 months, US shrimp imports fell year-on-year.
In the EU market, although shrimp exports in June still maintained a stable growth rate, up 37% to over $74 million. However, due to high inflation, shrimp exports to the EU in the months of the second quarter were lower than those of the first quarters. Especially, in the coming months, due to the euro depreciating more and more against the USD, the forecast is EU shrimp import demand may slow down. The market may be more positive in the last months of the year.
The good news for Vietnam's shrimp exports is that many of China's COVID-19 prevention regulations have begun to be relaxed. Recently, the country has removed the policy of suspending the import of frozen food contaminated with Sars-COV-2 virus after nearly 2 years of implementation.
According to VASEP, as of June, shrimp exports reached 2.3 billion USD (up 31% over the same period last year). However, from now to the end of the year will not be as prosperous as the beginning of the year. But thanks to an impressive breakthrough in the first half of the year, this year's shrimp exports are expected to grow at least 10%, reaching about 4.2 billion USD.
Duong Hung
