Positive outlook for Vietnam seafood industry as demand rises in key markets

With exports for the year estimated at $9-9.3 billion and demand increasing in key markets, things are looking up for Vietnam’s seafood industry, says an industry insider.

Le Hang, communications director of Vietnam Association of Seafood Exporters and Producers (VASEP), said that in September, a number of key products “regained balance” compared to the same period last year.

Shrimp and tuna exports in September reached the same level as last year, while that of pangasius fish posted a 9% increase year-on-year.

The nation’s September seafood export is estimated at $862 million, the same as last year. In the first three quarters of 2023, seafood exports totaled over $6.6 billion, down 22% year-on-year, according to VASEP.

Hang said that in the year to end-September, shrimp exports had reached $2.55 billion, still 25% lower than the same period in 2022.

However, export results in recent months have shown signs of recovery compared to previous months. In particular, demand has begun to rise in the two main markets, the U.S. and China, she said.

Exports to these two markets have recorded positive growth in the past two months. Meanwhile, some main markets under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) like Japan, Australia and Canada are also increasing shrimp purchases from Vietnam.

According to VASEP, pangasius exports recorded revenues of nearly $1.4 billion in the year to end-September, down 31% year-on-year. However, export of this fish is slowly recovering in the markets of China, Mexico, Brazil, the Netherlands, the UK and the U.S. Year-on-year, September exports to some markets reached the same level or higher.

Tuna exports have also tended to improve, with sales in September the same as in 2022. However, a continuous decline in the early part of the year caused the total for the first nine months to decrease 23% to reach $623 million.

September seafood exports to the U.S., China and EU increased by 4% to 17% year-on-year.

Hang reiterated that seafood exports was showing signs of getting better. If there are no other changes and raw material sources do not decline sharply, it is possible that seafood exports in 2023 will bring in sales of about $9-9.3 billion, she added.

According to the Ministry of Industry and Trade, exports to all markets fell in the first half of this year. In particular, export turnover to the U.S. was $706 million, down 46% year-on-year. Shipments to Japan and China fell 11% and 23% to $713 million and $634 million, respectively.

Seafood stocks were gradually being cleared after importers reduced purchases for a long period, it noted. However, the ministry also said it expected demand to increase gradually and recover slightly in the fourth quarter of this year.