WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Industry
Indian supply recovery may hamper growth of Vietnam shrimp exports in 2021
Phi Nhat 09:38, 2021/02/27
Vietnam’s shrimp exports will be the main growth engine of the seafood sector this year.

A recovery in Indian supply after Covid-19 may hamper growth of Vietnamese shrimp exports in 2021, according to SSI securities corporation (SSI Research).

  Vietnam’s shrimp exports will be the main growth engine of the seafood sector this year. Photo: vcci.com.vn

Major shrimp exporting countries like India, Ecuador and Thailand suffered heavily from the impacts of Covid-19 last year, Indian shrimp production was estimated to drop by more than 20% in 2020, according to Undercurrent News. 

Due to the short cycle of shrimp farming (only 3-4 months), the competition between Vietnam and India in the US and EU, which currently contributes 37% of the export value of Vietnamese shrimp, is predicted to become more intense in the second half of 2021.

The Vietnam Association of Seafood Exporters and Producers forecast that the country’s seafood exports can grow 10% year-on-year and reach US$9.4 billion in 2021 which is higher than the average rate of 6.8% in 2016-2019. Shrimp exports are expected to increase 15% compared to 2020, with a revenue of US$4.4 billion in 2021. 

 Chart: Shrimp and panagsius value, by year (US$ billion). Sources: Bloomberg & SSI Research

Consumption of seafood in the US and EU could increase when the vaccination against Covid-19  becomes widespread in these two markets in the second half of this year, then encouraging more consumers go out for eating at restaurants instead of staying home. 

Vietnam managed to partly avoid impacts of the pandemic thanks to the effective pandemic control work, leading growth in shrimp export turnover in 2020 of up to 11% compared to 2019. For Vietnamese pangasius, it is estimated that a recovery in both output and average selling price will drive export growth for the whole year of 2021. 

SSI Research has forecast that Aquaculture Stewardship Council (ASC) certified exporters may see more opportunities to expand in the EU market benefiting from the EU-Vietnam Free Trade Agreement which took effect last year. Average selling price can increase as demand surges, helping them improve gross margin.

However, it will be difficult for shrimp exporters to record the growth level of 2020, according to SSI Research.

RELATED NEWS
TAG: Vietnam shrimp exports India shrimp production EVFTA
Other news
18:35, 2024/10/30
Hanoi to host Vietnam-Asia Smart City Summit 2024
The summit aims to share best practices and promote cooperation among Vietnam's provinces and cities in building and developing smart cities.
15:53, 2024/10/29
Vietnamese spend $8.9 billion on ecommerce
The total transaction volume in the Jan-Sep period increased by 37.7% compared to the same period last year.
14:48, 2024/10/29
Hanoi steps up inspections to crack down on unsafe food
The purpose of the survey is to gain a thorough understanding of the local food safety situation and to identify non-compliance promptly, allowing for corrective actions to be taken to mitigate health risks.
22:24, 2024/10/23
SEMIEXPO Vietnam 2024 to foster growth of semiconductor industry
The exhibition aims to develop the ancillary industry ecosystem and attract investment from the world's leading semiconductor companies.
21:50, 2024/10/22
Hanoi targets double-digit growth over next decade
The economic goal will require the cooperation and accountability of all city departments.
20:59, 2024/10/20
Hanoi's industrial production shows positive growth
To foster industrial growth, Hanoi aims for all key industrial enterprises to benefit from the city's support policies.