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Vietnam’s Seafood Exports Surpass $1 Billion in October 2024

VIET NAM
Monday, November 04, 2024, 00:10 (GMT + 9)

In October 2024, Vietnam's seafood exports soared past the $1 billion mark, a 28% increase compared to the same period last year. 

This significant milestone marks the first time in 27 months, since June 2022, that monthly seafood exports have reached this level, signaling a strong recovery for the country's seafood sector. By the end of October, cumulative exports amounted to $8.27 billion, reflecting an 11.4% growth year-over-year, reports Le Hanh, Communications Director at the Vietnam Association of Seafood Exporters and Producers (VASEP).

Amid rising global demand for seafood, Vietnamese exports recorded impressive growth. Exports to China and Hong Kong surged by 37%, solidifying their status as the largest and fastest-growing markets for Vietnam. The US also showed strong demand, with exports increasing by 31%, followed by notable growth in Japan (22%), the EU (27%), and South Korea (13%).

Source: VASEP

By October's end, total export value to China, Hong Kong, and the US reached $1.5 billion. If China and Hong Kong sustain their current 20% growth rate, they could surpass the US as Vietnam’s top seafood import market by year’s end.

Despite slower economic recovery in the EU, positive trends in seafood consumption and rising import prices signal a brighter outlook for Vietnamese exports. By October 2024, exports to the EU had risen by 11% compared to the previous year.

Conversely, exports to Japan and South Korea saw only modest growth, ranging from 1.5% to 2%, primarily due to persistent inflation affecting consumer spending. Japan, once a leading importer of Vietnamese seafood, fell to third place in 2024, with total turnover reaching $1.25 billion, while South Korea reported $646 million.

Shrimp and pangasius continue to show promising growth. By the end of October 2024, shrimp exports reached over $3.2 billion (up 13%), and pangasius exports nearly $1.7 billion (up 10%). In October alone, shrimp and pangasius exports surged by 26% and 24%, respectively, outpacing other seafood products like tuna and squid.

Vietnam's shrimp industry received a boost on October 22, 2024, when the US Department of Commerce announced preliminary countervailing duties on shrimp imports from Ecuador, India, and Vietnam. The duty for Vietnamese shrimp was set at 2.84%, lower than India’s 4.36% and Ecuador’s 7.55%, enhancing Vietnam’s competitive edge in the US market.

However, despite favorable market conditions, shrimp and pangasius producers face raw material shortages. Companies must navigate these challenges by optimizing raw material reserves and alternative sourcing strategies.

Vietnamese octopus and shrimp in Korean market

Crabs and shellfish have maintained steady growth throughout the year. In October, exports of crabs and other crustaceans rose by 58%, while shellfish exports surged by 138%. The first 10 months of 2024 saw revenues of $267 million for crabs and $173 million for shellfish, marking increases of 66% and 58%, respectively. With declining US imports of premium seafood, China’s increased imports from Vietnam have further fueled this growth.

Tuna, squid, and octopus exports also showed positive trends in October but faced slower growth compared to the first half of the year. This slowdown is attributed to regulatory challenges from Decree 37, impacting the certification process for seafood at many fishing ports. Specifically, skipjack tuna—the primary raw material for canning—was affected, as fishermen were hesitant to risk violating size regulations that require a minimum length of 0.5 meters, potentially preventing sales to export factories.

The industry now looks forward to November 2024 with anticipation, as the EU’s IUU (Illegal, Unreported, and Unregulated) fishing inspection is expected. A favorable outcome could push tuna exports to meet or exceed the $1 billion mark, matching 2022's performance.

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