Nguyen Thi Thu Sac, chair of the Vietnam Association of Seafood Exporters and Producers (VASEP), said at the 2023 general meeting of members and the 25th anniversary of the establishment of the association that shrimp exports to major markets witnessed two-digit decreases in March. 

The exports to Japan and South Korea dropped by 20 percent, while there was a fall of 40 percent for the US, EU and Chinese markets.

In general, Vietnam’s shrimp exports in March brought turnover of $265 million, down 33 percent compared with the same period last year, and exports in the first three months of the year brought $600 million, down 37 percent.

The sharp decreases were attributed to weak demand from major import markets and fierce competition from Ecuadorian, Indian and Indonesian shrimp in target markets. However, more importantly, the business community is concerned about competitiveness in shrimp production costs.

According to Soc Trang-based Tai Kim Anh Seafood Processing JSC, in the first five months of the year, China imported $3 billion worth of shrimp of different kinds, an increase of 10 percent over the same period last year. However, the Chinese import volume dropped by 24.9 percent, while imports from Ecuador and India soared.

Reports showed that Vietnam ranked 11th among the largest shrimp exporters to China. China cut its purchase volume, attributed to Vietnam’s shrimp prices.

In early 2010, Vietnam ranked third to China and Thailand in shrimp output. But it has been surpassed by Ecuador, India and Indonesia in terms of output, accounting for 11 percent of the global market share in 2019.

VND10 trillion spent on antibiotic testing 

Le Van Quang, president of Minh Phu Seafood in Ca Mau province, called the Shrimp King, said that if Vietnamese enterprises don’t have solutions to cut production costs and improve competitiveness, Vietnam’s shrimp industry will recede and it won’t be able to exist.

According to Quang, the shrimp production cost in Vietnam is $4.8-5 per kilogram, or 100 percent higher than that of Ecuador ($2.3-2.4 per kilogram) and 30 percent higher than India ($3.4-3.8 per kilogram).

Vietnam’s shrimp farming survival rate is low, below 40 percent, lower than Ecuador (90 percent) and India (60-70 percent). The low survival rate in commercial farming is explained by the fact that farmers do not choose breeders and produce breeders with high resilience to unfavorable environmental conditions.

Vietnam cannot control diseases on shrimp well. If farmed shrimp is infected with antibiotics, farmers may incur a loss of up to $2 billion. It is estimated that Vietnam has to spend VND7-10 trillion on antibiotic testing fees.

Experts point out that the shrimp farming density in Vietnam is higher than the ecological loading and pond management capability, thus posing high risks. 

Previously, the shrimp farming density was 80 shrimp per square meter and the productivity was good. But since the yield increased to 150-250-500 shrimp per square meter, the farming has been less successful.

Meanwhile, India keeps a moderate density of 60 shrimp per square meter, and Ecuador 20-30, lower than Vietnam’s 250-500.

“Our shrimp grow rapidly and the farming density is high which brings high output, but germs may exist in the farming environment,” Quang said, adding that greed will lead to failure. “We want shrimp to grow rapidly and shorten the time of farming and we want high yield."

VASEP’s chair said that if the shrimp farming cannot exist in the time to come, the industry won’t be able to exist. In the shrimp value chain, Vietnam is doing well at the production, processing and export stages. However, the ecosystem of breeders and materials for shrimp have not been attached much importance to by the state for a long time. The shrimp production cost has become out of date compared with the world.

According to VASEP, competition between Vietnam and Ecuador and India has become very stiff. In 2023, Ecuador planned to increase shrimp supply to 1.5 million tons. Shrimp prices are expected to decrease further once the global supply increases.

Thailand’s total shrimp exports were 0.33 million tons in 2017 and 0.28 million tons in 2022. The figures were 0.45 million and 0.8 million, respectively, for Vietnam. 

Tam An