Shrimp exports may exceed 4 billion USD this year

Positive signs have been seen in shrimp exports since the beginning of this year and alongside a host of favourable conditions regarding market demand, the target of earning 4 billion USD from exports has been deemed “within reach”.

Auspicious signs

The US Customs and Border Protection (CBP)’s removal of anti-dumping tariffs on the Minh Phu Seafood Corporation’s frozen shrimp products exported to the US is great news for the company and Vietnam’s shrimp industry as a whole.

The move has allowed the company to ship more frozen shrimp products to the US free of additional tariffs currently imposed on those from India. It will also receive a refund of tariffs it submitted previously.

The Ministry of Industry and Trade said the decision is objective and fair, with thorough consideration given to the efforts of Minh Phu and relevant agencies.

On January 5, a batch of 160 tonnes of frozen shrimp products from Minh Phu left port for the US, Europe, and Japan.

Figures from the Ministry of Agriculture and Rural Development showed that seafood export value was estimated at 600 million USD in January, a year-on-year increase of 19.6 percent.

The Vietnam Association of Seafood Exporters and Producers (VASEP) said 2021 boasts favourable conditions for shrimp production and export, as demand worldwide remains stable and other exporters have yet to fully recover from the pandemic.

Vietnamese shrimp also possesses advantages in terms of tariffs thanks to new-generation free trade agreements the country has signed.

Experts noted that shrimp prices on the global market are projected to rise in the first half of this year and exports may well top 4.4 billion USD.

The US, Europe, and China are Vietnam’s largest markets at the moment, Deputy Minister of Agriculture and Rural Development Phung Duc Tien said.

To realise the export target, companies and farmers must carefully prepare necessary conditions for production while remaining vigilant against disease and any chemical or antibiotic residue, to ensure food safety.

Links between stakeholders in the supply chains also need to be strengthened to raise product quality and ensure origin tracing, he noted, adding that effective models should be expanded and technical barriers countered.

Shrimp exports raked in 3.7 billion USD in 2020, a year-on-year increase of 11 percent. Vietnam has an advantage in exports compared to other suppliers given that the country has largely kept COVID-19 under control.

Export value to the US surged 33 percent last year, while the figures to the UK rose 20 percent, the EU 6.1 percent, and the Republic of Korea 3.3 percent.