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Striving for shrimp export turnover of USD 3.5 billion in 2020

11/05/2020

This information was presented at the conference to deploy the task of developing the brackish shrimp industry in 2020, organized by the Ministry of Agriculture and Rural Development in collaboration with the People's Committee of Soc Trang province on May 8.

The report at the conference showed that, in 2019, besides the advantages, the shrimp industry also had some unfavorable developments, such as commodity prices in the world fluctuated in the first half of the year, increased trade competition, falling seafood raw material prices, rising fuel prices, etc.

Total farming area reached 705,545ha, of which farming area for tiger shrimp 603,855ha, whiteleg shrimp 97,865ha. The harvested output was 823,851 tons, equivalent to 110.5% compared to the same period in 2018.

Shrimp exports reached USD 3.36 billion, down 5.4% compared to 2018. Although not achieving satisfactory results as expected, Vietnam's shrimp exports to major import markets also showed positive signs in 2020.

In 2020, the farming area target will be 730,000 ha, of which area for tiger prawn farming of 620,000 ha and whiteleg shrimp of 110,000 ha; with expected output of 830,000 tons. Export turnover of USD 3.5 billion.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), in the second half of 2019, shrimp exports to markets tend to be better after a decline in 2018 and the first half of 2019. This trend will continue in 2020 when the inventory of 2019 is solved, import demand and consumption will increase, export prices will also recover.

In 2019, Vietnam’s shrimps are exported to 102 markets, of which the top 10 main import markets are the EU, the US, Japan, China, South Korea, Canada, Australia, Taiwan, ASEAN, and Switzerland accounting for 96.7% of Vietnam's total shrimp export value.

According to VASEP, the effective EVFTA Trade Agreement will create more expectation for Vietnam’s shrimps to EU market when tariff rates are sharply reduced.

Import tax for most shrimp raw materials (fresh, frozen, chilled) to the EU will be reduced from the basic level of 12-20% to 0% right after the agreement comes into effect; Import tax on processed shrimp to EU will be 0% after 7 years after the agreement comes into effect.

The reduction of import tax will help Vietnam’s frozen black tiger shrimp and whiteleg shrimp to have a distinct advantage compared to other countries.

 

Kylie Nguyen

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