Though, domestic shrimp prices have soared again since mid-August, export processing enterprises in the Mekong Delta of Vietnam are concerned about a raw shrimp shortage.
Vietnam has been exporting seafood to the world for two decades thanks to the shrimp industry. An estimated 40-45% of the total seafood export value is generated by the shrimp industry each year.
Vietnam’s Mekong Delta is home to 17 million people and is one of the world’s most productive ecosystems. The delta is also known for producing a large amount of shrimp each year.
A study published by the Vietnam Association of Seafood Exporters and Producers (VASEP) 2021, shows that fishery exports in 13 Mekong Delta provinces accounted for 60% of all exports. On the other hand, 6 provinces in the Southeast area accounted for 18% of the total with 602 million USD, while the remaining provinces were in the Central and Northern regions.
These statistics indicate that the Mekong Delta is a crucial strategic region that’s responsible for half of Vietnam’s exports of seafood. In the aftermath of COVID-19, Shrimp farming gradually recovered in the Mekong Delta, and exports remain strong.
In addition, the Mekong Delta’s favorable climate and government initiatives led to a significant increase in shrimp production for years. Furthermore, the numerous free trade agreements and steady production contributed to a huge increase in exports from this area.
Following a long period of plummeting prices, the current prices indicate a good sign for the shrimp industry of Vietnam, but they do not meet the expectations of farmers.
There are several shrimp processing factories for exports that recently announced the price of white leg shrimp has been increased to VND133,000 (US$5.5), VND104,000 (US$4.3), and VND88,000 (US$3.6) a kilogram.
However, a significant problem has arisen in recent days with many shrimp export enterprises in Soc Trang and Bac Lieu experiencing a lack of raw materials. Moreover, prices for raw materials have fallen in July.
The Vietnam shrimp industry has been unable to meet the increasing global demand for raw materials for years. Therefore, Vietnamese companies had to import raw materials from other countries to serve their reexports and maintain their seafood export volume.
It is currently common for many companies engaged in export processing to purchase raw shrimp in order to fulfill export orders. Due to this, shrimp prices are expected to increase throughout the remainder of the year. Although it is possible to overcome the shortage of domestic raw materials by increasing production, quality is another issue that cannot be resolved overnight.
The Mekong Delta agricultural sector is implementing a number of solutions to address the lack of raw shrimp in its localities.
Agricultural representatives of the province are collaborating with grassroots authorities in order to develop and expand effective feeding models for shrimp and to assist shrimp feeding collectives in obtaining affordable input materials including breeding stock, food, and medicine.
In this regard, it is hoped that the influx of imported raw materials will ensure Vietnamese exports and reprocessing continue, bringing real benefits to local farmers, the fishing industry, and the economy of the country as a whole.
Jaber Bin Abdul Bari
Department of Oceanography, NSTU
