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Ministry of Agriculture and Rural Development: there are still many opportunities for shrimp exports after COVID-19

03/09/2020

According to the Ministry of Agriculture and Rural Development, shrimp exports are forecast to have many export opportunities after COVID-19 when main rivals such as India, Ecuador and Thailand are delayed by national lockdowns, resulting in more orders shifting to Vietnam.

The market for raw shrimp this month did not fluctuate much in price due to slow recovery of both supply and demand.

In Bac Lieu, frozen black tiger shrimp of the size 20, 30, 40 per kg fluctuated at VND 200,000/kg, VND 170,000/kg and VND 140,000/kg respectively.

The price of whiteleg shrimp of the size 60 pcs per kg decreased by VND 5,000/kg to VND 95,000/kg, size 70 pcs/kg reduced VND by 2,000/kg to VND 88,000/kg, size 100 pcs/kg decreased by VND 2,000/kg to VND 83,000/kg.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), in July, Vietnam's shrimp exports reached USD 388.5 million, an increase of 16.3% compared to July 2019.

Accumulated in the first seven months of this year, shrimp exports reached USD 1.9 billion, an increase of 7.7% over the same period last year. This is a remarkable result in the context that the COVID-19 pandemic is still with complicated developments in major markets.

Particularly, in the context of the COVID-19 pandemic, demand for importing Vietnamese shrimp from major markets has not declined.

VASEP said that the control of the COVID-19 pandemic by the Government of Vietnam is said to be more effective than other countries while many of its main rivals are still struggling with the pandemic, therefore customers from these countries have switched to importing shrimps from Vietnam.

For Vietnam's shrimp exports, the US is the largest market, in July still recorded a positive growth and it is expected that Vietnam's shrimp exports to this market will still achieve good growth in the coming months.

Exports to China in July remained positive, however, the speed has decreased compared to the previous month.

Notably, Vietnam's shrimp exports to South Korea, UK, Canada, and Australia all with double digit growth in July this year.

The coming into force of the EVFTA Agreement will help the Vietnamese shrimp industry to compete better in Europe, along with the low tax on shrimp exports to the US market. However, Vietnam shrimp is under the impact of drought, and salt water intrusion.

Farmers are strongly recommended to stock to anticipate the opportunity that shrimp prices will recover well by the end of this year if COVID-19 is completely brought under control and market demand recovers. Farmers should diversify shrimp sizes when harvesting, not just focus on large sizes.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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