In Ho Chi Minh City, several companies are leading the charge. Phuc Loc Co. Ltd. processes around 60 tonnes of by-products daily to produce 4,000–5,000 tonnes of fishmeal annually, generating revenues of 72–90 billion VND (approximately 3–3.9 million USD). Similarly, Tu Hai Co. Ltd. exports cleaned and dried fish bones to Japan, earning 10–12 billion VND annually.

On the research front, the Southern Research Institute for Marine Fisheries converts mixed crab species into canned crab paste and chitosan powder, a high-value raw material for healthcare and agriculture, sold at up to 1,000 USD per kilogram. Beyond industrial applications, companies like Hai Lan Co. Ltd. transform shells into souvenirs, artwork, and jewelry, reaching global markets through platforms like Alibaba.

Forecasts from the agriculture and environment sector indicate a massive potential for seafood by-products. Shrimp heads alone could provide 490,000 tonnes of food products, pangasius offcuts 100,000 tonnes, and fish oil 150,000 tonnes annually. By 2030, shrimp by-products could reach 650,000 tonnes worth 80–100 million USD, while pangasius by-products could hit 1.3 million tonnes, valued at over 500 million USD.

Officials highlight that converting by-products into resources requires a strategic approach, supported by policies, investment, and collaboration among businesses and scientists. This transformation not only creates tens of thousands of jobs but also reduces environmental pressure from seafood waste.

Currently, Vietnam generates roughly one million tonnes of seafood by-products annually, yet only a fraction is processed, with the sector’s current value at around 275 million USD—far below its billion-dollar potential.

By turning seafood waste into “blue gold,” Vietnam is setting an example of innovation, sustainability, and economic growth in the global seafood industry.

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A Path to Sustainable Growth

The journey to this landmark goal is not without challenges. As Vietnam strengthens its position in the global seafood market, it faces increased scrutiny over antibiotic residues in exports. According to Le Thanh Hoa, Deputy Director of the National Authority for Agro-Forestry-Fishery Quality, Processing, and Market Development, ensuring strict quality standards will be essential in maintaining Vietnam’s export credibility.

The US Market: A Major Battleground

The United States remains one of Vietnam’s most crucial export markets, particularly for shrimp and tra fish (pangasius). Despite fierce competition from industry giants like India, Ecuador, and Indonesia, Vietnam’s shrimp exports saw a 15% rise in 2024, reaching nearly $3.9 billion. The country’s success lies in its strategic approach to value-added seafood products, including frozen fillets, tra fish skewers, skin snacks, and pureed fish balls—a growing favorite among American consumers.

Adding to Vietnam’s advantage is a recent resolution with the US at the WTO, which ended a long-standing anti-dumping dispute over pangasius exports. This victory is expected to smooth trade relations and strengthen Vietnam’s presence in the global market.

Challenges on the Horizon

Despite its achievements, Vietnam’s seafood industry faces mounting climate change impacts, rising production costs, and tougher competition from major seafood-exporting nations. Higher feed, fuel, and transportation expenses threaten profit margins, making it crucial for the industry to innovate.

Recognizing these challenges, the Directorate of Fisheries has outlined a shift in focus for 2025: rather than expanding shrimp and tra fish farms, the priority will be on deep processing techniques to enhance product value and reduce waste. The industry is also diversifying its aquaculture species, incorporating eel, tilapia, seaweed, and mollusks to tap into new market demands.

A Future Rooted in Sustainability

Vietnam is also embracing circular economy principles—finding innovative ways to utilize seafood byproducts to minimize environmental impact. By investing in value-added processing, the industry aims to extract greater value from each harvest while maintaining long-term sustainability.

Deputy Minister of Agriculture and Rural Development, Phung Duc Tien, sees a bright future for Vietnam’s fisheries sector. However, he emphasizes that productivity improvements, tighter quality controls, and disease management will be key to success. The industry must also address concerns about shrimp feed and antibiotic use to meet international safety standards and maintain its competitive edge.

Vietnam’s Seafood Industry: Rising to the Challenge

As Vietnam charts its path to $11 billion in seafood exports, the industry is proving that growth is not just about numbers—it’s about innovation, sustainability, and resilience. With a strong export strategy, a commitment to quality enhancement, and a growing portfolio of seafood products, Vietnam is well-positioned to maintain its leadership in the global market.

For seafood lovers across the world, the future looks promising. Vietnam’s journey is a testament to how a country can transform its fisheries sector into a powerhouse—balancing growth with responsibility, and setting a benchmark for sustainable aquaculture worldwide.

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With markets stabilising in the latter half of 2024, Vietnam’s seafood industry has regained momentum, and the third quarter recorded exports worth $2.76 billion, a 13% increase compared to the same period last year. Key products such as shrimp, tra fish, crab, and mollusks have led this surge in demand.

Shrimp Exports Lead the Way

Shrimp exports continue to be Vietnam’s leading seafood product, earning approximately $2.8 billion in the first nine months of the year, reflecting a 10.5% growth. While frozen shrimp exports face tough competition from Ecuador and India, Vietnam’s processed shrimp remains strong in international markets. Processed whiteleg shrimp exports have grown by 10%, while frozen whiteleg shrimp saw a 4.5% increase.

Tra Fish and Crab Exports Surge

Tra fish (Pangasius), one of Vietnam’s top export products, has contributed $1.46 billion to the overall fishery exports, marking an 8% rise. Processed tra fish exports jumped by an impressive 42%, highlighting a growing preference for value-added products in global markets. Crab exports have shown remarkable growth, surging by 56% in the third quarter alone, with a total nine-month increase of 66%. China’s strong demand is the primary driver of this growth.

Challenges and Outlook for 2024

While tuna exports showed strong performance earlier in the year, a shortage of raw materials has slowed the growth since August. Despite this, Vietnam’s tuna exports still increased by 16% year-on-year, reaching $715 million in nine months.

VASEP predicts that Vietnam total fishery exports value for 2024 will reach $9.5 billion, a 7% increase from 2023. Shrimp exports are expected to hit nearly $4 billion, tra fish exports could rise to $2 billion, and tuna is forecast to bring in close to $1 billion. Additionally, squid and octopus exports are projected to contribute $640 million.

With these promising trends, Vietnam remains a key player in the global seafood market, contributing significantly to international seafood trade.

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According to VASEP, its member companies, which account for 80-84% of Vietnam’s total seafood export value, comply with national laws, international food safety standards, and social responsibility protocols. These companies play a key role in producing seafood that meets environmental protection standards, contributing to the growing global popularity of Vietnamese seafood.

Shrimp alone accounts for 40-45% of Vietnam’s seafood export value, generating approximately $3.5-4 billion annually. The products are exported to over 100 countries, including the U.S., Europe, Japan, China, and South Korea. Vietnam now ranks among the top four shrimp-exporting nations globally, holding a 10-13% share of the world shrimp market.

VASEP highlighted Vietnam’s efforts to improve labour standards across the seafood sector, including shrimp farming. The government has implemented rigorous labour laws, enforced corporate social responsibility, and established effective inspection protocols to ensure compliance with ethical labour practices.

The shrimp industry is a crucial economic driver for Vietnam, providing livelihoods for millions, especially in rural regions. With more than 200 shrimp processing factories approved by the European Commission, VASEP ensures regular inspections to maintain high standards of worker welfare, food safety, and environmental sustainability.

Vietnamese shrimp farms boast numerous international certifications, including Best Aquaculture Practices (BAP), Global GAP, and Aquaculture Stewardship Council (ASC). These certifications require strict adherence to social responsibility, worker health and safety, environmental conservation, and compliance with national labour laws like the 2012 Labour Code.

In response to the Sustainability Incubator report, which was based on research conducted from July 2023 to May 2024, VASEP reaffirmed its commitment to ethical shrimp farming and dismissed the report’s findings as inaccurate and unfounded. VASEP maintains that the Vietnamese shrimp industry continues to operate sustainably while adhering to international and national standards for labour and food safety.

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Furthermore, Vietnam’s shrimp exports have increased this year due partly to the expansion of minor markets. Vietnam so hopes to generate between US$4 and US$4.3 billion in shrimp export revenue this year.

In 2023, Vietnam’s shrimp exports were approximately $3.38 billion, a 21.7 percent decrease from the previous year. This drop is driven by reduced global market demand and increased competition from nations such as Ecuador and India.

However, it is anticipated that the shrimp export sector will generate between $4 and $4.3 billion in revenue this year. In the meantime, Vietnam’s shrimp exports made $242 million in January 2024; a 71% increase over the same month the previous year. In certain areas, the cost of raw shrimp also increased in January of this year.

Exports of black tiger and white leg shrimp increased by double digits, while the value of exports of other shrimp varieties increased by triple digits. Products made from frozen or fresh shrimp grew more rapidly than those made from processed shrimp.

In 2024, the US and China will still be the two biggest destinations for Vietnamese shrimp exports, making up between 40 and 45 percent of the export value of the shrimp sector.

Vietnam’s major market for shrimp consumption is the US, which accounts for around 20% of the country’s total export value. 

Shrimp exports to the United States increased by 77% to $41 million in January 2024, continuing an upward trend that began at the end of 2023. Forecasts indicate that demand will only increase starting in the first quarter of this year.

Due to higher inventory in the EU market and the unlikely improvement of the Japanese Yen/US dollar exchange rate this year, FPT Securities predicted that demand in the EU and Japanese markets will rebound a quarter later than in the US market.

However, In the first month of this year, shrimp exports to Japan and South Korea grew by 30% and 21%, respectively, to $37 million and $23 million.

Furthermore, shrimp shipments to the EU increased 22% in the first month of this year, reaching $30 million.

Meanwhile, China is probably going to draw in more companies this year that export shrimp from Vietnam due to its close proximity, inexpensive shipping, and simpler regulations.

Moreover, Ecuador’s unstable security situation, coupled with increasing transportation challenges and expenses, would undoubtedly result in a decrease in supplies to China which will ultimately benefit Vietnam.

Therefore, China will need to import more shrimp from Vietnam and other Asian nations.

According to Deputy Minister of Agriculture and Rural Development Phung Duc Tien, to increase the value of shrimp and ensure the long-term development of the shrimp industry, localities, particularly the Mekong Delta provinces, must focus on developing high-quality seed sources to ensure proactive production, reduce production costs, and limit disease transmission. At the same time, investment is required to improve the infrastructure system for the expansion of agricultural areas and logistics, as well as to promote green production, low emissions, and the use of digital technologies in aquaculture.

Jaber Bin Abdul Bari
Department of Oceanography, NSTU

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Among the major shrimp producers, Vietnam, has seen a flat growth in production. A million tons of shrimp were produced by Vietnam for the first time in 2023. Europe, Japan, China, Korea, and the US are Vietnam’s top five export destinations for shrimp. The nation had an export revenue of 11 billion USD, placing it among the leading three seafood exporting countries in the world. Vietnam will be able to compete with top exporters like Ecuador, India, Indonesia, Thailand, and China as the shrimp industry expands.

As a leading shrimp exporter in the world, Vietnam is driving the growth of its shrimp market. The country’s geographical location and technological advancements provide it with a competitive edge in shrimp production. Quality and safety standards have led to an increase in demand for Vietnamese shrimp overseas. Growth in the shrimp market is also attributed to the government’s support and efforts to improve production efficiency. 

Vietnam has 644,000 to 737,000 acres of brackish water shrimp farming between 2010 and 2023. Nonetheless, the nation intends to increase the area it uses for shrimp farming to 750 thousand hectares, with a goal of exporting revenue of more than 4.3 billion dollars. Thus, Vietnam is quite interested in increasing its export territory with highly ambitious plans and developments.

A notable development is the introduction of sustainable farming. As part of its efforts to increase production and protect the environment, Vietnam is exploring sustainable shrimp farming.

Furthermore, researchers from the Research Institute for Aquaculture have developed a highly efficient white-leg shrimp farming method based on recirculating aquaculture technology to keep the water exchange minimal and ensure biological safety. Over 20% more shrimp are produced with this method compared to conventional methods due to a reduction in costs associated with chemical treatment, labour, and water replacement.

The Mekong Delta provinces of Ca Mau and Bac Lieu are also making significant infrastructural investments in shrimp cultivation and aquaculture.

Vietnam is also aiming to reduce the challenges it faces in shrimp farming. Several factors hinder productivity and efficiency in the industry, including inadequate infrastructure, unsuitable technologies, and high production costs.

With shrimp as a key component of the Vietnamese seafood export turnover, Vietnam intends to reach 12.5-2 billion USD by 2025. The successful shrimp industry in Vietnam is a testament to the country’s commitment to sustainable aquaculture practices, quality control, and product innovation.

Jaber Bin Abdul Bari
Department of Oceanography, NSTU

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Deputy Chairman Nguyen Minh Canh underscored the province’s strategic focus on renewable energy, aquaculture, and coastal tourism. The overarching goals include fostering ecological marine culture, addressing climate change, safeguarding the marine environment, combating coastal erosion, and preserving marine ecology.

To achieve these objectives, the province has outlined key priorities, including allocating marine space for the development of renewable energy and environmentally friendly marine economy sectors. The authorities will actively support and expedite investments in zoned wind power projects between the present and 2030.

In the realm of renewable energy, Ben Tre province aims to achieve an output of 1,500 megawatts (MW) from solar and wind power by 2025, with a more ambitious target of reaching 3,000 MW by 2030.

In the domain of aquaculture, the province is committed to the development of high-tech, biosafety, and environmentally friendly practices over the next decade. The goal is to attain an aquaculture output of 136,000 tonnes by 2030, generating a production value of VND 450 million (US $18,460) per hectare annually. Ben Tre plans to establish 5,100 hectares of high-tech farming areas dedicated to breeding aquatic species and producing fry by 2030.

Stringent quality standards will be enforced in all concentrated aquaculture areas, ensuring compliance with Vietnamese Good Agricultural Practices (VietGAP) or equivalent standards. Presently, the province boasts 3,067 hectares of high-tech marine shrimp breeding areas, yielding an annual output of over 128,000 tonnes, with a particular focus on shrimp, a key aquatic species for the region.

Ben Tre province will also upgrade its inspection data management systems for fishing boats, ensuring that the management and development of fishing boats align with their granted licenses. Improvements in the service quality of fishing ports, storm shelters for fishing boats, and facilities involved in the production, repair, and logistics services for fishing boats are on the agenda. These measures collectively aim to enhance the overall efficiency and sustainability of the Ben Tre province’s marine economy in Vietnam.

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The UKVFTA, in effect, has eliminated tariff duties on frozen shrimp products exports to the UK, giving Vietnamese exporters a competitive edge over countries like Thailand, Malaysia, Indonesia, the Philippines, India, and Brazil that have yet to establish an FTA with the UK.

However, it’s crucial for Vietnamese shrimp products to adhere to the rules of origin, which specify that raw materials used in production must be sourced within Việt Nam’s territory.

The department noted that Vietnamese shrimp exporters have been progressively aligning with the UKVFTA’s provisions, leading to positive growth in exports. In the first two months of 2023, white leg shrimp exports reached $30.4 million, making up 69% of Việt Nam’s seafood export earnings to the UK, as reported by the General Department of Customs.

During this period, black tiger shrimp shipments, though constituting only 2.7% of the total, surged sixfold compared to the previous year, signaling a promising trend in the UK market for this product.

Despite a substantial appetite for seafood, including shrimp, in the UK, there could be potential challenges in the near future due to global commodity trade dynamics and rising inflation impacting consumer concerns about pricing.

Additionally, the costs and logistics of seafood imports are expected to pose difficulties. Nevertheless, the UK remains an attractive market for Vietnamese shrimp products in the long run. It’s anticipated that Việt Nam’s shrimp exports to the UK will constitute about 3.6% of the country’s total shrimp exports, which is estimated to reach approximately $4 billion in the future.

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Tran Anh Khoa, the General Director of Anh Khoa Seafoods, a prominent player in black tiger shrimp production and exports based in Ca Mau, reports that export markets have rekindled, with the Chinese market leading the charge in preparation for the year-end festivities. Notably, Chinese customers have been placing more orders compared to the same period last year, with a particular fondness for black tiger shrimps. Other critical markets, including Japan, the European Union, and the United States, have also shown signs of a rebound in orders.

Domestic firms are enthusiastic about the market’s warming trend, especially in the fourth quarter. This upturn in the industry could potentially translate into a substantial export revenue, with experts predicting that Vietnam may earn between USD $9.2 to $9.3 billion from the export of aquatic products this year.

Despite this promising outlook, some tra fish exporters in An Giang province have not been able to reap the benefits due to declining export prices. The situation has been a mixed bag for different segments of the seafood market.

According to data from the Vietnam Association of Seafood Exporters and Producers (VASEP), in September, Vietnam’s seafood exports amounted to 862 million USD, mirroring figures from the same period the previous year. Notable recoveries have been observed in the United States, China, and the European Union, with export numbers showing year-on-year increases ranging from 4% to 17%.

However, the overall export value of Vietnam seafood still lags behind. As of the end of September, the seafood export value was slightly over USD $6.6 billion, marking a 22% decline year on year.

In the first nine months of the year, shrimp exports, which account for a significant portion of the industry, have seen a 25% decrease in export revenue, amounting to USD $2.55 billion. Nonetheless, recent months have shown significant signs of recovery, driven by increasing demands in major markets such as the United States and China, as well as emerging opportunities in Japan, Australia, and Canada.

Simultaneously, the tuna export segment has made substantial progress, aligning closely with figures from the previous year, while fish exports have begun to gradually recover across various markets, including China, Mexico, Brazil, the Netherlands, the United Kingdom, and the United States, according to the VASEP’s observations.

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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

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