According to the Vietnam Association of Seafood Exporters and Producers (VASEP), in October, Vietnam's seafood exports are estimated to reach more than USD 1 billion, an increase of 28% over the same period last year. This is the first time in 27 months (from June 2022) that monthly seafood exports have reached the USD 1 billion milestone, marking a great success for Vietnamese seafood enterprises.

Strong increases from major markets have boosted Vietnam’s seafood exports this month. In particular, China and Hong Kong led the way with a 37% increase, affirming their role as the largest and fastest growing markets. Exports to the US increased by 31%, Japan by 22%, the EU by 27%, and Republic of Korea by 13%.

As of the end of October, total export turnover to China, Hong Kong and the US had reached USD 1.5 billion. China and Hong Kong could surpass the US to become Vietnam's largest seafood import market by the end of the year if they maintain the current growth rate.

Despite the slow recovery of the European economy, demand for seafood consumption and import prices still show positive signs. Exports to the EU in the first 10 months of the year increased by 11% compared to the same period last year.

However, Japan and Republic of Korea recorded only modest increases of 1.5% to 2% due to persistent inflation, affecting consumption. Japan fell to third place in imports, with USD 1.25 billion over 10 months, while Republic of Korea with USD 646 million.

In this context, shrimp and pangasius are still two products with great potential. As of the end of October, shrimp exports reached more than USD 3.2 billion, an increase of 13%, and pangasius exports reached nearly  USD 1.7 billion, an increase of 10%. In October alone, shrimp and pangasius exports increased sharply, by 26% and 24% respectively, far exceeding the exports of tuna, squid, and octopus.

A positive news for the Vietnamese shrimp industry is that on October 22, the US Department of Commerce announced a preliminary countervailing duty (CVD) rate for Vietnam's shrimp of 2.84%, lower than that of India and Ecuador. This is an important competitive advantage for Vietnam's shrimp in the US.

Despite being in the peak import season, the shrimp and pangasius industry is still facing a shortage of domestic raw materials, forcing businesses to be flexible in utilizing raw materials and alternative sources of supply.

The crabs and mollusks maintained strong growth momentum, reaching revenue of USD 267 million and USD 173 million over 10 months, an increase of 66% and 58% compared to 2023. The demand for seafood imports from China increased, opening up opportunities for these products from Vietnam.

Meanwhile, tuna, squid and octopus exports tend to stagnate due to the impact of Decree 37 on controlling caught seafood. In particular, skipjack tuna - the main raw material for canning - is heavily affected as fishermen are afraid of violating minimum size regulations.

The fishing industry is expecting positive results from the EU's IUU inspection program in November. If the results are favorable, tuna exports this year could reach the USD 1 billion milestone as in 2022.

Kylie Nguyen