Vietnam’s seafood export industry is on track to hit its projected target of $11 billion this year, despite experiencing slower growth in exports to the U.S. due to increased tariffs. In the first 10 months of the year, exports witnessed a 15% year-on-year increase and reached a figure of $9.5 billion. This surge was primarily driven by shrimp exports, which contributed to more than 40% of the total exports, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
The third quarter saw a slow down in exports to the U.S., particularly in shrimp and pangasius, following the 20% tariff on seafood imports from Vietnam, which was implemented in August. However, this slump has not hampered overall growth.
Promising opportunities for export growth are emerging in other markets, particularly China. In the first 10 months of the year, China purchased over $2 billion worth of seafood from Vietnam, marking a significant increase of 32%. The main products exported to China include lobster, marine fish, and live crab, with demand consistently on the rise.
Despite a weakening yen, exports to Japan also increased, witnessing a 15.2% rise to $1.4 billion. Other rapidly expanding markets include Canada and Australia.
Despite the promising figures, VASEP has cautioned that the fisheries sector could encounter challenges in the coming year. The main concerns comprise the increased tariffs, potential impacts of the U.S. Marine Mammal Protection Act, and the likelihood of the E.U. maintaining its yellow card on Vietnam due to illegal, unreported, and unregulated fishing.
The competition presented by India, Ecuador, and Indonesia is also expected to intensify in the near future, adding to the list of potential hurdles.
What factors have contributed to Vietnam’s seafood export growth this year?
The main factors include a surge in shrimp exports and increasing demand from markets such as China, Japan, Canada, and Australia.
What challenges could potentially impact the seafood export industry in Vietnam?
Increased tariffs, potential ramifications from the U.S. Marine Mammal Protection Act, the likelihood of the E.U. continuing its yellow card on Vietnam for illegal fishing practices, and rising competition from India, Ecuador, and Indonesia could pose challenges.
What is the projected seafood export target for Vietnam this year?
Vietnam aims to achieve a seafood export target of $11 billion this year.
