According to the Vietnam Association of Seafood Exporters and Producers (VASEP), seafood exports in February 2024 are projected to reach $564 million, a decrease of 8% compared to the same period last year. VASEP considers this decline to be a positive figure as February this year includes the Lunar New Year holiday.
For the first two months of the year, seafood exports exceeded $1.3 billion, an increase of 23% compared to the same period in 2023.
In the first month of this year, exports surged by 64% compared to the same period in 2023 (if the factor of the Lunar New Year falling in January last year is excluded, exports still increased by 25-26%).
“After continuous declines from the fourth quarter of 2022, exports from the fourth quarter of 2023 have shown a more positive trend and a strong breakthrough in January when the demand for goods for the Lunar New Year increased in many markets, especially China and other Asian countries. Part of this demand also serves consumers in the Vietnamese and Asian communities in other markets,” said VASEP.
According to the agency, after the Lunar New Year, the demand will typically slow down, so exports to China will not increase as sharply as in January. However, the Lenten season has also begun, so the seafood demand is returning in Western and many other markets.
Until the end of February, both shrimp and tuna exports increased by 37% compared to the same period, while catfish exports rose by 15% and other types of fish by 8%. Meanwhile, exports of squid and octopus decreased slightly by 1%.
Shrimp exports show positive signals in many markets such as China, the United States, Japan, Canada, and Australia. In particular, in the Chinese market, the demand is recovering well, while the competing exporting country, Ecuador, is being warned due to shrimp containing sulfites and increased transportation costs due to tensions in the South China Sea, which have caused a decline in Ecuador’s shrimp imports into China.
However, Ecuador is focusing more on the US and EU markets, so the competitive pressure is even greater in these markets.
Slight price recovery
The export prices of catfish to the US and EU reached their lowest point in the last months of 2023 but made a slight recovery in January. However, the export prices to China remain significantly lower than in previous years.
“Inventory and oversupply issues still affect the consumption and import of main seafood species such as shrimp, catfish,” said VASEP.
Seafood exports are still in a difficult phase due to IUU yellow card issues that have halted the confirmation and certification of exported seafood to the EU. Domestic businesses are also facing difficulties in both local and imported raw materials due to IUU-related regulations.
In March and April, seafood businesses will participate in the International Seafood Expositions in Boston, US and Barcelona, Spain, expecting more positive results for their orders after these events.
