Vietnamese shrimp exports expected to pick up in May

Vietnamese shrimp exports is expected to pick up in May

Japan remains the largest consumer of Vietnamese shrimp, accounting for 20.7% of the overall shrimp export value. After enduring a slight decrease in March, Vietnamese shrimp exports to Japan rose by 19% in April to a figure of US$48.6 million, representing an annual surge of 11% to US$180.5 million against the same period from last year.

Over the four-month period, the United States imported shrimp products with a value of US$158.7 million from the country, an on-year increase of 17%. Indeed, shrimp exports to the US during April enjoyed an increase of 14% to over US$43.2 million, while the US represents the only market to record positive growth in terms of importing Vietnamese shrimp during the first four months of the year.

This increase can be attributed to a reduction in shrimp imports from India and Ecuador to the US market due to these countries facing severe hurdles as a result of the novel coronavirus (COVID-19).

Shrimp exports to the EU throughout the reviewed period witnessed a drop of 7.7% on-year to nearly US$123 million. Notably, shrimp exports to the major markets of the Netherlands and Belgium grew positively after experiencing a downward trajectory during March.

Elsewhere, shrimp exports to China enjoyed an increase of 16.6% to US$39.2 million, a rise of 16.6% in comparison to April last year.

This marks the first time that this market has seen an increase in importing Vietnamese shrimp after undergoing consecutive declines over the course of the previous three months.

The country’s shrimp exports to the northern neighbour fell during the four-month period by 15.5% to US$108.8 million in comparison to the same period from last year.

As a consequence of the COVID-19 pandemic, Vietnamese shrimp is projected to enjoy bright prospects due to the major rivals such as India, Ecuador, and Thailand encountering difficulties due to the national lockdown imposed by several countries globally.

In addition, the upcoming European Union-Vietnam Free Trade Agreement (EVFTA) is poised to offer a great boost to the Vietnamese shrimp industry as it enhances its competitiveness in the EU market, whilst simultaneously the sector will also enjoy low import taxes to the US market.