In July 2019, for the first time since the beginning of the year,
Vietnam's shrimp export has achieved positive growth. Particularly in
July 2019, shrimp export reached over US$ 334 million, up 13.4% over the
same period in 2018.
Prices of raw shrimp and export shrimp no longer fell sharply like in
the first months of the year and tended to increase, market demand was
more exciting as one of the factors that helped Vietnam shrimp export to
grow positively in July, 2019.
In the first seven months of this year, in the structure of shrimp
products export of Vietnam, white leg shrimp accounted for 68.2%, black
tiger shrimp accounted for 21.6% and the rest were marine shrimp. Export
of white leg shrimp reached US$ 1.2 billion, down 7% compared to the
same period last year; Export of black tiger shrimp reached nearly US$
383.7 million, down 15%; Export of other marine shrimp reached US$ 181
million, up 5%. Export of processed black tiger shrimp dropped the most
by 34%. Exported canned sea shrimp increased the most by 57%.
In July 2019, Vietnam's shrimp exports to the top 8 main import
markets (including the EU, Japan, the US, China, South Korea, Canada,
Australia, Taiwan) all grew positively. Notably, shrimp exports to EU
and South Korea also recorded the first month of positive growth after
registering continuous negative growth since the beginning of this year.
Export to China and the US grew well, reaching the double-digit level.
In July 2019, the export of shrimp to EU - Vietnam's largest shrimp
import market was over US$ 77 million, up by 3.8% compared to July 2018.
In the three main import markets of Vietnam shrimp in the EU (England,
Germany, the Netherlands), exports to England and Germany increased by
12.9% and 13% respectively, while exports to the Netherlands fell 12.8%.
In the first 7 months of this year, shrimp export to EU reached US$
377.5 million, down 21.3% compared to the same period last year.
The EVFTA between Vietnam and the EU has officially signed from June
30, 2019, whereby the import tax on most raw shrimp (fresh, frozen,
chilled) imported into the EU will be reduced from the basic tax rate of
12 - 20% to 0% as soon as the agreement comes into effect (from 2020),
however, the import tax on processed shrimp will be 0% after 7 years
from the entry into force of the agreement.
Vietnamese shrimp exported to EU are mainly processed shrimp. For
this product, Vietnam has few competitors, mainly Thailand and
Indonesia. Processed shrimp have a high tax rate without GSP (from about
10-20%), thus, Vietnamese competitors will be difficult to compete on
price. In EU region, the income per capita is high. The more convenient
products are, the more popular the market is for Vietnamese shrimp
companies to select the seafood distribution systems within their
EU accounts for about 31% of total world shrimp imports and 23% of
Vietnam's shrimp exports. If Vietnam can take advantage of tariff
preferences, effective application of rules of origin, Vietnam shrimp
exports to the EU will have an opportunity to increase from 2020.
However, export to this market in the second half of the year cannot
Export of Vietnamese shrimp to Japan in July 2019 increased 2.2% to
nearly US$ 56 million. Shrimp exports to this market, increased
continuously in the three months of May, June and July. In the first
seven months of this year, shrimp export to this market reached nearly
US$ 329 million, down 2.8% compared to the same period in 2018.
Japan remains the second largest shrimp import market of Vietnam in
the first 7 months of this year. Thanks to the advantages of the trade
agreements between Vietnam and Japan, exporting Vietnam shrimp to Japan
in the first half of this year is more positive than other main markets.
The US and China
Vietnam shrimp exports to the US in July this year increased by 37.2%
to US$ 77 million. In the first 7 months of this year, shrimp export to
this market reached US$ 327.4 million, up 5%.
Demand for US shrimp imports from Vietnam is warming up due to
declining inventories while the US is also reducing imports from India
and Thailand and sharply decreased imports from China.
Exporting of Vietnamese shrimp to the US is expected to achieve the
lowest tax rate in the final result of the 13th administrative review.
Export of Vietnamese shrimp to China in July 2019 increased 47.7% to
US$ 51.6 million. In the first 7 months of this year, exporting shrimp
to this market reached over US$ 285 million, up 1.7% compared to the
same period last year.
In July of this year, China increased the import of shrimp from
Vietnam sharply due to the reduction of imports from other sources. The
second largest supply of shrimp for China is India's forecast to reduce
output this year due to bad weather and epidemics. Argentina ranked
fourth in shrimp supply to China and announced to reduce shrimp
production due to reduced shrimp biomass in the country's fishing