Vietnam's seafood exports have surged in the first quarter of 2024, establishing a yearly goal of achieving US$9.5 billion

Vietnam's seafood exports have seen a strong start in 2024, with the industry association VASEP aiming for a revenue target of US$9.5 billion for the year. The primary export markets continue to be the US, China, Hong Kong, and Japan.

Vietnam's seafood industry has had a promising beginning in 2024, with first-quarter exports reaching almost US$2 billion, representing an 8 percent increase compared to the previous year, as reported by the Vietnam Association of Seafood Exporters and Producers (VASEP). This growth is fueled by growing demand from key markets such as the US, Japan, China, and Hong Kong. VASEP is optimistic that Vietnam's seafood exports could reach US$9.5 billion by the end of 2024, surpassing last year's figures.

Primary markets and essential products

United States

The United States has become the leading importer, as Vietnamese seafood exports to the country have increased by 16 percent to reach US$330 million. The growth has been particularly strong for products such as shrimp, tuna, tra fish, and crab, with increases ranging from 13 percent to 53 percent.

The recovery of tra fish prices in the US, following a low point at the end of last year, has contributed to this upward trend. Additionally, there has been a slight increase in the price of white-legged shrimp, although it remains below the average price of the past five years.

A significant factor driving this growth is the final findings of the US Department of Commerce (DOC) in the 19th anti-dumping duty administrative review. This review established the anti-dumping tax rate for five Vietnamese companies at US$0.18 per kilogram for frozen tra fish fillets exported between August 2021 and July 2022, which is a decrease from previous rates. This positive outcome bodes well for Vietnamese tra fish exporters.

Furthermore, the preliminary countervailing duties imposed by the DOC on Vietnamese, Indian, and Ecuadorian shrimp were notably lower for Vietnam compared to the other two countries, providing an additional boost for Vietnamese seafood exporters.

China and Hong Kong

China and Hong Kong have shown a significant rise in their demand for Vietnamese seafood. The export of important products like lobster, crabs, and white-legged shrimp has increased by 11 times, seven times, and 2.5 times respectively compared to the previous year. This increase is partly attributed to China's stricter inspections on shrimp imports from Ecuador, resulting in reduced supply from Ecuador and creating more opportunities for Vietnamese exporters.

Japan

In Japan, there is a growing demand for Vietnamese seafood, particularly white-legged shrimp (20 percent increase), crab (23 percent increase), and tra fish (25 percent increase) in the first quarter. This reflects Vietnam's reputation as a reliable seafood supplier.

Other markets

Although shrimp and tra fish exports to the EU and Korea have not fully recovered, tuna exports to these regions have increased by 27 percent and 15 percent, respectively. Overall, tuna exports to major markets have been strong, with a 30 percent increase to the US and a 9 percent increase to Japan.

Exports of squid and octopus to Korea have also grown by 16 percent, while exports to the US and Japan have decreased by 3 percent and 21 percent, respectively.

Outlook and challenges

In spite of the fact that average export prices have risen compared to the end of 2023, they are still below historical averages. VASEP is hopeful that upcoming international seafood fairs in the US, EU, and Japan will enable companies to secure more orders at improved prices.

Looking at the first four months of 2024, Vietnam's seafood exports reached US$2.7 billion, showing a 6 percent increase compared to the previous year. In April alone, Vietnam's seafood export revenue reached US$770 million, a 4 percent year-on-year increase. According to VASEP, exports of tuna, tra fish, crab, and various shellfish all displayed positive growth from January to April compared to the same period last year. Notably, Vietnam's shrimp export revenue in April reached US$285 million, the highest value recorded since the beginning of the year.

Lê Hằng, the communications director of VASEP, pointed out that Vietnam, as the world's leading exporter of frozen shrimp after India and Ecuador, may have additional opportunities as these competitors face warnings regarding antibiotic residue and labor issues. However, she stressed the importance of Vietnamese firms adhering to strict regulations in both domestic and international markets to sustain their export momentum.

VASEP predicts that Vietnam could generate US$9.5 billion from seafood exports in 2024, including US$4 billion from shrimp exports, US$1.9 billion from pangasius sales, and US$3.6 billion from other seafood products.

Attention to seafood exporting companies

Vietnam’s seafood export industry is off to a strong start in 2024, showing substantial growth in key markets and expected favorable conditions to continue driving this positive trend. The industry's ability to adapt to market demands and regulatory environments will be essential in maintaining and expanding on this success.

The following strategic recommendations can optimize export operations and increase global market presence:

1. Ensure strict compliance with domestic and international regulations to mitigate risks and gain a competitive edge over countries facing regulatory challenges.

2. Continuously diversify export markets to reduce reliance on any single market and take advantage of growth opportunities in emerging markets.

3. Invest in value-added processing to enhance product appeal and command higher prices in international markets.

4. Improve supply chain efficiencies to enhance product quality and reduce costs, thereby boosting competitiveness.

5. Actively participate in international seafood fairs to expand market reach, secure new orders, and negotiate better prices.

The United States has emerged as the largest importer of Vietnamese seafood, with a significant increase in exports of shrimp, tuna, tra fish, and crab. This growth is attributed to the recovery of tra fish prices and favorable anti-dumping duty rates set by the US Department of Commerce. China and Hong Kong have also shown a sharp increase in demand for Vietnamese seafood, particularly lobster, crabs, and white-legged shrimp. In Japan, there is a growing popularity of Vietnamese seafood, especially white-legged shrimp, crab, and tra fish. This market research highlights the potential for students studying abroad in these countries to explore and enjoy Vietnamese seafood products.

Conclusion

Based on the detailed information provided in the selected text, it is evident that Vietnam's seafood export industry is thriving in 2024, with significant growth and positive trends observed in key markets such as the US, China, Hong Kong, and Japan. The Vietnam Association of Seafood Exporters and Producers (VASEP) has set an ambitious revenue target of US$9.5 billion for the year, highlighting the industry's potential and opportunities for expansion. By capitalizing on market demand, maintaining regulatory compliance, diversifying export markets, focusing on value addition, strengthening the supply chain, and leveraging international trade fairs, Vietnamese seafood exporters can continue to drive growth and success in the global market. The outlook for Vietnam's seafood export sector remains promising, with ongoing opportunities for further development and prosperity in the industry.