Vietnam shrimp exports: Look back 20 years
(11/28/2019 12:00:00 AM)
Vietnam’s shrimp exports from 1998 to 2017
achieved the impressive growth of 752% from US$453 million in 1998 to
nearly US$4 billion in 2017 (up 8.5 times). In the 20 years, despite
facing many challenges, the shrimp industry still stands up to become
the key export sector, bringing the highest turnover among export
seafood products, contributing to the reputation of Vietnam's aquatic
products on the international market.
Today, Vietnamese shrimp increasingly asserted its brand and quality with the 3rd
rank in the top exporters in the world. Shrimp exporters in Vietnam
have increased their revenue, prestige, affirmation of brand name, good
corporate responsibility with society and environment.
Vietnam’s shrimp exports in turn to reach new heights
is increasingly taking up an important position, contributing a large
proportion to total seafood exports. In the total seafood exports, the
proportion of shrimp exports on average accounts for about 50%.
the 20 years (1998-2017), Vietnam’s shrimp export value recorded a
remarkable growth rate with a rise of 752%. In the period, the value of
shrimp exports reached the lowest in 1998 with US$453 million when the
shrimp industry was not focused for development, production stayed low
and processing technology was not high. From 1998 to 2002, though the
export turnover of shrimp did not exceed US$1 billion, it posted the
gradual growth over the years. In 2003, the first time shrimp export
turnover of Vietnam exceeded US$1 billion. From 2004 to 2009, the value
of shrimp exports increased from US$1.3 billion to US$1.7 billion with a
stable annual growth rate.
In 2010, Vietnam’s shrimp exports at the first time hit more than US$2 billion, a growth of 25% compared to 2009.
2012, at the first time, Vietnam’s shrimp exports decreased by 6.6% due
to a series of technical barriers in many countries. Not only that,
2012 was also in the midst of the world economic crisis, through which
the demand for world shrimp consumption fell sharply. Another reason for
the decrease in shrimp export value in 2012 was the EMS disease which
has impacted not only on production, processing and exports of shrimp in
2012, it can be said that two consecutive years of successful exports
of shrimp in Vietnam: export in 2013 reached US$3 billion and 2014 with
nearly US$4 billion.
2013, for the first time in history, Vietnam’s shrimp exports eyed over
US$3 billion. Shrimp supply in the world decreased due to EMS, the
price of shrimp in the world market increased sharply, the higher demand
for whiteleg shrimp while supply and production of Vietnamese whiteleg
shrimp in 2013 also climbed; therefore, these main factors help Vietnam
obtain the good result. In addition, in 2013, Vietnamese shrimp
benefited from the U.S market when it recognized that Vietnam shrimp did
not receive subsidies from the government. Accordingly, shrimp
enterprises did not have to pay tax twice when exporting to this
2014, shrimp exports continued to rise by 26.9% year on year; reaching a
peak of US$3.95 billion. This is still the record high level of
Vietnamese shrimp up to now. This was thanks to the high demand for
shrimp in the world and the strong dollar.
success of Vietnam’s shrimp exports in 2013 and 2014 had confirmed
firmly the position of Vietnamese shrimp, especially in the context that
competitors faced difficulties. In particular, Thailand had been hit
hard by the news of this industry using fish meal by the illegal fishing
vessels published in the British media.
exports in 2015 reached nearly US$3 billion; down 25.5%. In 2015,
export prices fell sharply while demand from key markets did not
increase. Shrimp prices worldwide fell sharply by 15-20% due to the
difference in supply and demand in the U.S, the EU and Japan. 2015 was a
bad year for Vietnamese shrimp industry. The weather was unfavorable
throughout the country, low demand from importing markets and currency
exchange rate fluctuations led Vietnamese shrimp prices fall down.
2016 until now, Vietnam’s shrimp exports showed signs of recovery with
the continuous positive growth in each month of year. Demand from major
markets rose while the world supply fell. In 2017, shrimp exports
reached near the peak in 2014 with US$3.85 billion thanks to the efforts
of the industry as focusing on deep-processing products with good
Increasing proportion of whiteleg shrimp exports
shrimp exports increased by nearly 335 times in the 20 years. The
export turnover of this item posted the strongest growth out of 3 major
export items of Vietnam. In the 20 years, the proportion of this item in
the total shrimp export turnover increased from 1.6% to 66%. In 1998,
the export value reached the lowest in the three major shrimp items for
exports of Vietnam with just over US$7.5 million; in 2017, whiteleg
shrimp sales reached a record export turnover of over US$2.5 billion.
was also the first year of whiteleg shrimp to exceed black tiger shrimp
exports in value. Before 2012, whiteleg shrimp always accounted for
lower proportion than that of black tiger shrimp in the total structure
of shrimp exports. With short time of farming, high productivity while
the price was quite stable, whiteleg shrimp is considered as one of the
main aquaculture species. With remarkable features of productivity,
profitability and an expected rise in output, favorable consumption
market, production and export turnover of whiteleg shrimp forecasted to
continue the rise in the coming years.
tiger shrimp exports increased by 7 times in the 20 years. The export
value reached the lowest at US$126 million in 1998 and reached the
highest in 2010 with over US$1.4 billion. From 1998 to 2002, exports of
this item continued to grow. From 2003 to 2014, exports increased
continuously. Exports of this item started to decline from 2015 and its
share reduced from 66% in 2010 to 23% in 2017.
Advantages from markets
the country, shrimp industry is receiving attention, encouraging,
facilitating from the mechanism and policies. The program of sustainable
economic development of fisheries in the period of 2016 - 2020 has been
approved by the Government. Accordingly, it strives to actively produce
100% of black tiger shrimp and whiteleg shrimp which are free with
importing markets, the world economy expected to recover, especially in
major markets such as the U.S, Europe, Japan and China, the demand for
seafood in these markets forecasted to continue the growth this year. In
addition, a series of bilateral and multilateral free trade agreements
with other countries have been signed that will open opportunities for
Vietnamese enterprises to boost seafood exports to these markets.
Shrimp exports projected to grow strongly in the future
2017, together with pangasius, shrimp was officially approved by the
Government as a national product and should be invested to promote
development. Besides, the Prime Minister has recently promulgated the
National Action Plan for the Development of Vietnam Shrimp Industry to
goal is to make Vietnam shrimp industry into a large, sustainable
production industry, adapt to climate change and protect the ecological
environment. At the same time, to improve the quality, value, production
efficiency and competitiveness of Vietnamese shrimp products, bringing
benefits to farmers, businesses and the economy. These are considered as
important "pushes" for the development of Vietnamese shrimp industry in
the coming time. In 2018, many shrimp experts predicted that Vietnam’s
shrimp exports will reach over US$4 billion.