Vietnam’s aquatic product exports expected to recover in 2024

Vietnam’s aquatic product exports in January surged 60.8% year-on-year to 730 million USD, making a positive signal for the year, according to the Ministry of Industry and Trade’s Agency of Foreign Trade.

Aquatic product shipments have showed signs of recovery since the end of 2023, and are likely to rebound in 2024, especially in the second half. Exports of key aquatic products, namely shrimp and tra fish, are expected to recover following a setback last year.

The Vietnam Association of Seafood Exporters and Producers (VASEP) has forecast that shrimp exports will grow 10-15% from 2023, with prices increasing in the second half when inflation pressures cool down and importers’ inventories fall.

In the meantime, the tra fish sector targets to earn 2 billion USD from shipping 1.7 million tonnes abroad.

However, escalating tensions in the Red Sea have driven up sea freight costs, fueling products’ prices which could affect consumers’ purchasing decisions.

VASEP Deputy General Secretary Nguyen Hoai Nam said that local firms hope to get updated on the Red Sea situation so as to pen rational business and production plans, and receive support from shipping companies who are an important link in the global trade activities.

Furthermore, Vietnamese shrimp exports to the US will be affected in the first half of this year as the American Shrimp Processors Association (ASPA) in October 2023 filed trade petitions seeking anti-subsidy duties on imported frozen shrimp from Vietnam, Ecuador, India and Indonesia.

VASEP has recommended Vietnamese exporters to study the US’s anti-subsidy procedures, keep a close watch on the situation, and closely work with the VASEP and the Trade Remedies Authority of Vietnam.

Earlier, the Ministry of Agriculture and Rural Development lowered its target for aquatic product export value for 2024 to 9.5 billion USD from its previous expectation of 10 billion USD due to global headwinds.