Workers process shrimp for export in Sóc Trăng Province. — VNA/VNS Photo

Businesses, farmers, and management authorities need to develop rational strategies in response to market changes to create breakthroughs and achieve the set export revenue target of US$4-4.3 billion for the year, experts have said.

By the end of July, Việt Nam had exported nearly US$2 billion worth of shrimp, marking a 7 per cent year-on-year increase.

Trương Đình Hòe, Secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP), stated that while the positive growth is notable, it does not fully reflect the formidable challenges the industry faces in major markets such as the US, the EU, and Japan.

He explained that the US, which was the largest importer of Vietnamese shrimp in 2023 with a turnover of $682 million, has not yet recognised Việt Nam as a market economy. This means that Vietnamese exporters continue to face discrimination in US anti-dumping and anti-subsidy investigations.

Hòe further noted that in such cases, the actual production costs of Vietnamese firms are not recognised. Instead, the “surrogate value” of a third country is used to calculate the dumping/subsidy margin, creating difficulties for Vietnamese shrimp exports in this key market.

Statistics from the General Department of Vietnam Customs show that despite an expansion in the early months of the year, shrimp exports to the US have declined due to inflation-weary consumers tightening their belts, surging sea freight costs, and fierce competition from Ecuador and India.

Experts predict stiff competition in China, Việt Nam's largest shrimp market during the January-May period, for the remainder of the year. In the first half of the year, China imported 436,000 tonnes of shrimp, with 75 per cent of that amount coming from Ecuador.

Vietnamese exporters have reported that ocean shipping costs have skyrocketed by more than 40 per cent since May, placing their products at a disadvantage in transoceanic markets.

Despite these challenges, VASEP noted that the industry maintained its export growth in major markets, including China (24 per cent), the EU (32 per cent), the US (9 per cent), and Japan (4 per cent).

VASEP forecasts a better export situation in the coming months, driven by higher demand from the US and China from the end of Q3 to serve the holiday season.

Vietnamese shrimp has maintained its competitive edge over supply from India and Ecuador in Japan, the Republic of Korea (RoK), Australia, the UK, the US, and the EU, thanks to intensive processing and a variety of added-value products.

Industry insiders have highlighted the importance of eco shrimp in the sector's development, noting that it can easily penetrate fastidious markets. They advise farmers to focus on expanding farming areas, preparing raw materials, and broadening markets. These measures are crucial for improving the industry’s intrinsic strength and ensuring its competitiveness in large markets.

Additionally, the insiders emphasised the need for enterprises to receive support from competent authorities to reduce trade barriers such as anti-dumping and anti-subsidy taxes in the US, as well as quotas on shrimp exports to the RoK, which have negatively impacted the industry's growth.

Lê Văn Quang, director general of the Minh Phú Seafood Joint Stock Company, stressed that businesses must invest in advanced technologies to create more intensively processed products with high value to successfully compete in international markets. — VNS