Shrimp exports recover in July
Viet Nam’s export of aquatic products in July showed positive signs with an increase of 9 per cent year-on-year, particularly with exports of shrimp and other products rising, except for pangasius.
As a result, the country’s total seafood export turnover in the first seven months of 2019 reached US$4.7 billion, nearly equal to the same period last year, reported the Viet Nam Association of Seafood Exporters and Producers (VASEP).
Shrimp exports up
After continuous declines in the first months of the year, shrimp exports began to recover in July with an increase of 13.4 per cent and reached $334 million. Enterprises boosted sales to all major markets. Exports to the US increased by 37 per cent, China 48 per cent, and Australia 56 per cent. In particular, the average export price to the US decreased by $1.1 per kilo over the same period last year.
For China, the Government is tightening trade and increasing food safety control, so cross-border exports are not acceptable. However, official exports by sea tended to increase.
From June, the white-leg shrimp exported by sea to China increased by 1.5 times compared to the previous month. VASEP forecasts that this trend will continue to bring positive results in the last months of the year.
In contrast, shrimp exports to the EU fell by 21 per cent. Of which, the main consumption countries such as the UK, Germany and the Netherlands recorded a decrease of 5 per cent, 9 per cent and 45 per cent, respectively. Average selling price decreased by $1 per kilo against the same period last year.
In Japan, export volume remained stable and market demand did not increase. However, the average price decreased by $1 per kilo, from $12 to $11, causing the total turnover to drop by nearly 3 per cent to $329 million in July.
Pangasius exports down
According to VASEP, pangasius exports continued to fall by nearly 13 per cent in July, pushing the total export turnover in the first seven months down by 5.5 per cent to $1.13 billion.
In the US, after falling nearly 28 per cent in the second quarter due to the impact of the 14th administrative anti-dumping review, sales to this market in July decreased by 56 per cent.
Exports to other markets also reversed, of which sales to the EU decreased by 16 per cent, to ASEAN by 14 per cent, Mexico by 28 per cent and Brazil by nearly 30 per cent. However, exports to China recovered remarkably, rising by 71 per cent in July.
Tuna exports positive
In July, tuna exports maintained a growth of 16 per cent thanks to demand from the US and Japan but decreased by 2.5 per cent with squid and octopus.
The illegal, unreported and unregulated (IUU) yellow card continues to affect seafood exports to the EU market. In addition, the issue of inadequate confirmation and certification of exploited and imported materials causes exports to stall. As a result, tuna exports to EU decreased by 20 per cent while octopus and squid exports increased by 12 per cent.
For the US, tuna exports increased by 61 per cent, and octopus and squid increased by 60 per cent. The US is also the largest market of Vietnamese tuna, accounting for 43 per cent of total export turnover to other markets.
For Japan, tuna exports also recovered with an increase of 85 per cent in July.
VASEP forecasts that shrimp exports are more positive in the US, China, and Japan markets in the last months of the year when inventories decrease, demand increases and shrimp quantity in India may drop by 20-30 per cent due to the weather and falling prices.
With pangasius, the association predicts that exports will increase strongly in the last months, because export enterprises have caught up with the requirements of Chinese product quality safety regulations.
Export of tuna is also forecast to continue growing well in the second half of the year in the US and China markets. However, the EU market will be difficult to predict because it depends on the results of EU inspections at the end of October regarding the implementation of recommendations against IUU exploitation.
According to VASEP, in the next few months, businesses may continue to boost sales to this market. If there are positive results after the inspection, exports will improve.
Businesses can also boost sales to markets outside the EU. Exports are expected to maintain positive growth in the last months of the year.