Ample room ahead to boost Vietnamese shrimp exports
Changes in the global geopolitical landscape coupled with economic inflation has made seafood trade increasingly challenging, including shrimp products, although experts believe that Vietnamese shrimp still has many opportunities ahead for growth amid this turbulent cycle.
According to information released by the Vietnam Association of Seafood Exporters and Producers (VASEP), although economic inflation has caused consumers to tighten their spending and choose a food which is suitable for their affordability, Vietnamese shrimp remains the preferred item by consumers around the world.
Mohandas Kizhakke, representative of Captain Fisher Foodstuff Company in Kuwait, said that shrimp imported from the nation usually sells very well.
In Kuwait and the Gulf region as a whole, shrimp remains highly popular, with menus specifying where the shrimp actually comes from. Restaurants where Captain Fisher Foodstuff Company sources shrimp only wants to sell items from Vietnam.
According to Kizhakke, the reason why Kuwaiti consumers prefer Vietnamese shrimp is because it undergoes a more hygienic treatment process compared to some other countries. Therefore, Vietnamese shrimp can be classified as a high-class food line and in many cases several markets do not have enough for consumption.
Shrimp is also classified as a high-end product line in some markets, with Vietnamese shrimp still being selected for imports to some major markets such as the United States, Europe, and China.
For example, because of the outbreak of shrimp disease in China, the global supply of shrimp has endured a decline amid a period of increased demand, a factor which has forced the Chinese market to increase shrimp imports from Ecuador, India, and Vietnam.
The past eight months has witnessed China import more than 60,000 tonnes of shrimp from Ecuador, more than 18,000 tonnes from India and over 7,400 tonnes from Vietnam. However, due to the situation regarding inflation, several currencies have fallen against US$, thereby causing damage to importers.
Apart from direct transactions through importers, Vietnamese shrimp also boasts more export opportunities due to breaded shrimp and super-processed shrimp being included in the list of items eligible for incentives under the Compliance-Based Inspection Scheme (CBIS). This is the preferential mechanism for plant goods imported into Australia in order to allow them to enjoy lower rates of biosecurity testing.
Maintaining export target
It is from market-induced difficulties, political fluctuations, and inflation, that shipping rates remain high, even though the global oil price has cooled down over the past month. Vietnamese shrimp still enjoys a lot of opportunities to enter the international market with a high position, good quality, and meeting the stringent criteria of consumers.
Ho Quoc Luc, chairman of the Board of Directors of Sao Ta Food Joint Stock Company, shared that the current unfavourable factors have become positive things for the shrimp industry. The revenue and profit achieved by the shrimp industry is the result of the market strategy in each phase, along with the expansion of farming activities of the whole sector.
It is therefore estimated that during the past nine months of this year, shrimp export turnover reached US$3.37 billion, up 24% on-year, of which markets with strong growth changes include Australia, the Middle East, and China.
Key markets have slowed down due to economic inflation, although there is no sign of a sharp decrease, meaning that shrimp exports can still achieve the set target for the year.
In terms of major markets, the Chinese market always accounts for the highest percentage of Vietnamese shrimp imports as it is the largest shrimp market globally.
With the current evolution of shrimp disease in Vietnam, as well as in other shrimp farming countries around the world, it will inevitably affect the supply of raw shrimp for processors and exporters.
This will also impact shrimp production costs and shrimp prices in the world market.
Luc commented that exports will greatly depend on the international economic situation. When the global economy recovers, shrimp consumption will definitely increase to stronger rates than usual.
Businesses must therefore focus on deep-processed shrimp and sell them at a good pricethrough the purchase price of commercial shrimp, he added.
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