Vietnam shrimp exports to Japan to go up this year
(11/21/2019 12:00:00 AM)
Japan is the second largest importer of
shrimp in the world, accounting for about 14% of the total value of
imported shrimp worldwide in recent years. On average, Japan imports
about $ 2.5 billion of shrimp every year. In 2018, imported shrimp to
Japan reached US$2.35 billion, down 7.1% compared to 2017. Among the top
6 main shrimp suppliers to Japan, shrimp imports from Thailand and
Indonesia increased slightly whereas imports from Vietnam, India,
Argentina and China fell compared to 2017.
Imported
shrimp to Japan went down due to high inventories volume from the
beginning of the year and fluctuations in the Yen. In addition,
suppliers such as China and Argentina reduced shrimp exports to Japan
due to declining domestic shrimp supplies.
Vietnam was still the largest shrimp supplier to Japan,
accounting for 25.6% of the total value of shrimp imports to this
country. Thailand ranked second at 18%, followed by Indonesia at 14.9%
and India at 14%. The average price of imported shrimp from Vietnam was
the highest (US$11.3/kg) in the top of the main suppliers. Therefore,
Vietnam must compete on price with other suppliers in this market
(Indonesia: US$11/ kg, Thailand: US$11/ kg, India: US$9.2 / kg,
Argentina US$9.6/ kg, China US$8 / kg ...)
According to Vietnam Customs, Vietnam shrimp exports to
Japan in 2018 reached 639.4 million, down 9.2% compared to the same
period in 2017. Japan is currently the second largest shrimp import
market of Vietnam, accounting for 18% of total export value of
Vietnamese shrimp to international markets.
In 2018, the export of Vietnamese shrimp to Japan only
climbed in January and November, the remaining months has negative
growth compared to the same period in 2017. The value of shrimp export
to Japan decreased partly due to the fluctuation of the Yen and the
fierce competition of rival suppliers such as India and Thailand. India
had difficulties in exporting to Europe, therefore they increased export
to Japan.
Frozen Nobashi white leg shrimp (headless, peeled, tail-on
and straightened) with sizes of 26/30, 31/35, 41/50 were priced from
US$10.2 to US$11.2/ kg. Fresh white leg shrimp (headless, peeled,
tail-on, straightened) with sizes of 2L, 4L, 5L, 7L were priced from
US$9.5 to US$11.2/ kg.
Over the years, Vietnam has maintained its No. 1 position
in supplying shrimp to Japan thanks to the ASEAN-Japan Comprehensive
Economic Partnership Agreement (AJCEP) which took effect in December 1,
2008 as well as the Vietnam - Japan Economic Partnership Agreement
(VJEPA) which came into effect from October 1, 2009.These agreements
facilitated the exporting of Vietnamese seafood to Japan thanks to
declining tariffs. Specifically, soon after the AJCEP Agreement came
into force in 2009, shrimp products have enjoyed a 0% tax rate.
Since January 14, 2019, the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP) has officially come into
effect in Viet Nam. Accordingly, Vietnamese shrimp exports to Japan
will benefit from this Agreement.
Ready-to-eat shrimp products will grow well in the coming
times. The reason being that Japan's ready-to-eat food industry
increased due to the increase in the population of single people and a
fall in home cooking. In order to promote shrimp export to Japan,
enterprises should innovate market access methods along with promoting
their brands more strongly, ensuring product quality. It is forecast
that Vietnam shrimp exports to Japan in 2019 will achieve 2-digit growth
compared to 2018.
VIFEP (Vasep)
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