Vietnam shrimp exports reached a record high of US$4.3 billion last year, up 11.2% from the previous year. Moreover, shrimp exports account for about 40%-45% of the country’s total seafood export value, which is about US$3.5-4 billion.
A total of 714,000 hectares were dedicated to shrimp farming in Vietnam during the 2018-2022 period, with a total shrimp production ranging between 745,000 and 930,000 tons per year on average. As of now, Vietnamese shrimp is exported to more than 100 countries and territories around the world, including European markets, North American markets, Asian markets, and Chinese markets.
According to the Vietnamese Association of Seafood Producers and Exporters (VASEP), Vietnam’s shrimp export value grew 11% year-over-year (YoY) to $4.3 billion in 2022. An 11% YoY increase in exports came from Vannamei shrimp, while a 15% increase came from black tiger shrimp.
To achieve the output target of 563,000 tons, the shrimp industry will concentrate on maintaining farming areas and increasing harvested areas as planned in the second half of 2023.
According to the General Department of Fisheries under the Ministry of Agriculture and Rural Development (MARD), the shrimp industry has contributed to the nation’s seafood exports over the last two decades. More than 3 million jobs have been created by the shrimp industry in particular. Furthermore, it is estimated that the fisheries sector employs more than 5 million people, including more than 1 million shrimpers.
The incredible success of the Vietnamese shrimp sector however depends on various factors.
Vietnam is well suited to develop brackish water shrimp farming due to its large area, favorable climate, and abundance of water resources. Moreover, science and technology have been applied to shrimp farming in a variety of ways, including seed production, commercial farming, preservation, and processing.
According to local reports, the shrimp industry in Vietnam has made profits by focusing on processed products. The processing level in Vietnam is currently the highest in the world. In particular, Vietnam is a top producer of processing and packaging equipment.
Thanks to the world’s leading shrimp processing technology, Vietnamese shrimp has conquered a number of difficult markets over the years, producing high-end, high-value-added products and instant foods.
The Europe-Vietnam Free Trade Agreement (EVFTA) also contributes to the increase in exports, since frozen shrimp is subject to a 0% tariff rate and other shrimp products receive preferential tariff rates.
There are, however, other factors that negatively affect the industry, such as production costs.
The cost of shrimp production in Vietnam is too high, limiting its competitiveness in the global market. According to Le Van Quang, speaking on June 23 at the 2023 Vietnam Shrimp Forum, shrimp of the size that makes up 50-60 pc per kilogram cost US$2.3-2.4 in Ecuador, $3.4-3.8 in India, and $4.8-5 in Vietnam. The three countries are the world’s top shrimp exporters.
Additionally, Vietnam’s success rate is less than 40% compared to Ecuador’s 90% and India’s 60% success rate.
Ngo The Anh, head of the Aquaculture Department, shared his vision for the development orientation of the brackish water shrimp industry in the future. According to him, the department will employ new and advanced techniques in production, diversify farming methods in accordance with regional conditions, and adapt to climate change effects.
Jaber Bin Abdul Bari
Department of Oceanography, NSTU
