Vietnamese shrimp export value must be increased

How does the Vietnam Sustainable and Clean Shrimp Alliance (VSSA) evaluate Vietnam’s current shrimp supply and export capacity, and what advantages and challenges do Vietnamese businesses possess when reaching international markets?

Le Dinh Huynh, general secretary of the Vietnam Sustainable and Clean Shrimp Alliance

Vietnam’s current capacity for shrimp supply and export is quite stable and fully meets the market demand, especially in challenging markets such as Europe, Japan, and the United States. However, Vietnam’s shrimp farming industry is currently facing difficulties due to constantly increasing input costs, low prices of raw shrimp, a lack of capital for farmers, and higher production costs compared to other countries in the region.

Vietnamese businesses have the capability to be at the forefront of shrimp processing, particularly in value-added and deep-processed products. Furthermore, its participation in numerous free trade agreements provides a competitive advantage.

Despite these challenges, Vietnamese shrimp export businesses still face some persistent challenges, including high production costs, high logistics costs, unstable product quality in the domestic market, a lack of a national brand for Vietnamese shrimp, and a failure to establish a sustainable supply chain.

According to the national action plan to develop Vietnam’s shrimp industry by the end of 2025, Vietnam set an export target of $10 billion. Is Vietnam’s shrimp industry capable of reaching the finish line?

In 2023, Vietnam’s shrimp export revenue reached $3.38 billion, a decrease of nearly 22 per cent compared to the previous year’s $4.3 billion. Therefore, in order to reach the target of $10 billion, a growth rate of nearly 300 per cent would be required in 2024 and 2025.

Based on the forecast, the shrimp export situation in 2024 shows signs of improvement compared to 2023, but it is still uncertain whether it will surpass the levels of 2022. However, looking at the statistical figures in recent years, we can't predict that the expected target of $10 billion set for 2025 is achievable.

The model of ecological shrimp farming is being strongly developed by VSSA in the Mekong Delta. What benefits will the model bring to both farmers and export businesses?

The adoption of organic shrimp farming, which obtains international certification, is a solution that can help the Mekong Delta region address the challenging issue of simultaneously preserving forests and promoting economic development. This model represents a sustainable shrimp farming approach as it effectively addresses all three aspects of social, environmental, and economic concerns.

Shrimp farmers will receive training to enhance their skills and apply scientific techniques to optimise productivity on the same land area. The value of the output will be higher as it will be connected and linked to high-value market segments through a well-established supply chain.

In addition, they also benefit from policies that provide payments for forest environmental services and have access to higher-quality shrimp seed through supply chain linkages, especially when practising environmentally friendly shrimp farming, which helps improve the environment and reduce risks in aquaculture.

For businesses, developing the eco-friendly shrimp farming model also helps them secure a clean and consistently high-quality raw material source, catering well to the premium market segment. This increases the strength of their brand, builds trust with customers, and contributes to stimulating demand in other normal product segments.

By participating in forest protection and maintaining the forest-shrimp model, businesses will have the ability to produce high-quality shrimp products with low emissions, meeting future market barriers regarding carbon emissions.

What is your assessment of market demand for shrimp products grown according to ecological models, and what are the main export markets and potential markets?

In comparison to the saline ecosystem, environmentally friendly shrimp farming under forest canopy yields higher and more stable productivity, with fewer disease risks.

Currently, the market demand for this product has somewhat declined compared to before due to various factors such as the impact of the pandemic, geopolitical situations, conflicts, and inflation. However, this lull is only temporary, and we believe that organic shrimp products will soon recover and have strong growth potential.

The primary markets for organic shrimp are Europe, the US, and Canada, while potential markets that can be further explored include Japan, South Korea, and some Middle Eastern countries when combined with Halal standards.

Currently, there are approximately 5,000 households engaged in the sustainable shrimp farming value chain, covering a total area of nearly 20,000 hectares. We provide assistance to local communities in enhancing their knowledge and technical skills to achieve higher shrimp productivity. This support includes providing input services such as high-quality shrimp seed and linking small-scale farmers to the international market through eco-certification.

The VSSA has outlined a plan to continue supporting businesses in accessing funding sources for development, expanding the certification area, and meeting the demands of the international market. We view eco-certified shrimp products as the main flagship commodity of the shrimp industry in Ca Mau province specifically, and the Mekong Delta region as a whole.

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