Rising demand to boost Vietnam’s H2 seafood exports

Seafood demand is likely to recover slightly in the fourth quarter of this year, boosting second-half exports, according to the Ministry of Industry and Trade.

In June 2023, seafood exports to most major markets except the UK and Australia continued to decrease compared to the same period in 2022. However, the rate of decrease in export turnover to most key markets, particularly the U.S. and China, has slowed down compared to the early months of this year, according a report by the ministry's foreign trade agency.

The U.S. was Vietnam's top seafood buyer in June, with $143.3 million, a decline of 33.5% year-on-year but an improvement from the 36.9% fall in May this year.

Japan was Vietnam's second-largest seafood export market in the month at $132.2 million, down 17.8%. Meanwhile, the value of seafood exports to the Chinese market fell 7.9% to $122 million.

UK shipments up 16%

Vietnam's seafood exports to the UK climbed nearly 15.7% year-on-year in June 2023, recovering from a fall in May. According to the General Department of Customs, Vietnam's seafood exports to the UK reached 4,400 tonnes and $28.9 million in June, an increase of 22.3% and 15.7% year-on-year, respectively.

Export of most types of seafood from Vietnam to the UK climbed considerably in June, with the exception of squids and crabs. In particular, shrimp exports to the UK in June rose to 2,060 tonnes, valued at $19.9 million, up 30.6% and 22.7%, respectively.

Seafood export to Australia rose 2.7% year-on-year to reach $27.5 million in June.

According to the foreign trade agency, rising inflation will continue to influence seafood consumption in major countries like the U.S., the EU, China and Japan in the third quarter.

In the first half of this year, exports to all markets fell. In particular, 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 are gradually being cleared after importers reduced purchases for a long period. The agency said it expects demand to increase gradually and recover slightly in the fourth quarter of this year.

Major exporter Sao Ta SJC reported H1 net revenues of VND2.04 trillion ($86.24 million) and approximate after-tax profit of VND125 billion ($5.28 million), down 25% and 22% year-on-year, respectively.

Vinh Hoan Corporation, another major exporter, saw its seafood export fall 20% year-on-year to VND846 billion ($35.75 million). Its revenue in the first six months fell 34% year-on-year to VND4.92 trillion ($207.93 million).