An export shrimp processing line at a Minh Phú Seafood's factory. As of February 15, Vietnamese shrimp exports to Australia reached more than US$23 million, an increase of 48 per cent year on year. — VNA/VNS Photo Vũ Sinh
Australia is considered a high potential market for Vietnamese shrimp as this market's demand for processed shrimp is increasing, according to the Việt Nam Association of Seafood Exporters and Producers (VASEP).
Meanwhile, Việt Nam's shrimp processing industry is constantly developing with a diversity of products.
Focusing on developing its strengths, Vietnamese businesses will succeed in major export markets, including Australia, according to VASEP.
Lê Văn Quang, general director of Minh Phú Seafood Group Joint Stock Company, said shrimp processing and exporting enterprises should invest in more advanced technology to create more deep-processed and affordable products.
Hồ Quốc Lực, chairman of Sao Ta Food Joint Stock Company, said that thanks to investment in modern technology, Vietnamese shrimp still accounted for the largest share in the global market, despite strong competitive pressure from cheap shrimp of Ecuador, India and Indonesia.
According to VASEP, as of February 15, Vietnamese shrimp exports to Australia reached more than US$23 million, an increase of 48 per cent over the same period in 2023.
Australia is the fifth largest market for Việt Nam's export shrimp, accounting for 7.5 per cent of the total value of shrimp exports.
In 2023, Vietnamese shrimp exports to Australia reached $233 million, down 14 per cent compared to the previous year. However, the rate of decline was still lower than in other main markets, such as Japan, the EU, South Korea and Canada.
Việt Nam's shrimp export reduction last year followed the downtrend of seafood exports on the global market due to high inflation rates, causing demand to decline.
Australia is the 13th largest economy in the world with an import turnover of nearly $250 billion each year. Australia now is Việt Nam's seventh largest trading partner, while Việt Nam is Australia's tenth largest trading partner.
Both Việt Nam and Australia are members of at least three free trade agreements (FTAs), including ASEAN - Australia - New Zealand FTA (AANZFTA), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP).
Australia has a small population of about 25.7 million people, but this is a potential market because the people are willing to pay high prices for quality products, and buy imported goods.
However, Australia is still a demanding market with a system of strict standards for imported goods.
In addition, the distance between Việt Nam and Australia leads to high logistics costs and long shipping times, which are challenges for Vietnamese seafood businesses when exporting to this market.
Enterprises must be proactive in exploiting and developing markets, and have long-term business plans to promote exporting goods to Australia.
On the occasion of a Special Summit commemorating the 50th anniversary of ASEAN-Australia relations and Prime Minister Phạm Minh Chính's visit to Australia in the early days of March, Việt Nam and Australia upgraded ties to a Comprehensive Strategic Partnership.
This means the two countries will promote market access measures and facilitate trade activities in the fields of agriculture and fisheries.
In addition, the Việt Nam Trade Promotion Agency (Vietrade) and the Australian Trade and Investment Commission (Austrade) signed a memorandum of understanding (MoU) to strengthen cooperation in trade and investment promotion between the two countries.
This MoU will help the two countries create a stable, sustainable and methodical cooperation mechanism. Then, they will establish plans to implement trade and export promotion activities, advancing cooperation between Vietrade and Austrade, as well as the economic and trade cooperation between Việt Nam and Australia.
According to VASEP, Vietnamese shrimp exports to Australia surged from $127 million in 2019 to $272 million in 2022.
White-legged shrimp has accounted for the largest proportion of Việt Nam's shrimp product structure exported to Australia, accounting for 95 per cent. The rest has been black tiger shrimp (0.2 per cent) and other types of shrimp (4.8 per cent).
Regarding kinds of products, processed shrimp products have accounted for 40 per cent of the total export value of shrimp products to this market, mainly shrimp dumplings, ginger shrimp dumplings, frozen breaded white shrimp and frozen white shrimp skewers. — VNS