VN shrimp exports to US expected to increase by 20 per cent

Shrimp exports to the US have been unaffected by the Covid-19 outbreak, and are expected to increase by 20 per cent this year, according to the Viet Nam Association of Seafood Exporters and Producers.

They were worth US$323.3 million in the first half, a year-on-year increase of 29 per cent, it said.

Viet Nam enjoyed a competitive advantage over major competitors in the US market thanks to its quick stabilisation of shrimp production after the pandemic.

India and Ecuador were affected not only by the shrinking global market but also by stagnation in production due to their governments’ lockdown orders to contain the pandemic and workers’ fear of going to their factories.

Ho Quoc Luc, chairman of Fimex Vietnam, said large shrimp producing countries such as India, Ecuador, Indonesia, and China were severely affected by Covid-19 in the first half, causing their supply chain to be interrupted.

For safety reasons, many large importers placed orders with Vietnamese firms instead, he said.

According to figures from the US’s National Oceanic and Atmospheric Administration, India was the largest supplier for many years, accounting for 40 per cent of shrimp imports.

But its exports to the US declined by 56 per cent year-on-year in May.

Ecuador was the third largest supplier to the US. Its exports fell by 32 per cent in May to $33.6 million.

According to experts, India and Ecuador are looking to increase their shrimp exports to the US since they face difficulties in selling to China.

In July some shrimp consignments from India to China were delayed at customs, and the two countries’ ongoing border conflict is expected to hit exports in the third quarter.

Last month China banned imports from three large Ecuadorian shrimp export firms after coronavirus was detected on their product packaging.

Vasep forecast Viet Nam’s shrimp exports to the US to fall in the third quarter, but rise by 20 per cent for the full year because of lower anti-dumping tariffs than China.

Overall shrimp exports were worth $1.5 billion in the first half, a year-on-year increase of 5.7 per cent. — VNS