W14 Shrimp Update: Vietnam’s Shrimp Exports Increase while US to Impose Tentative Countervailing Duties on Imports

Published 2024년 4월 12일

In W14 in the shrimp landscape, it’s reported that Vietnam's shrimp exports surged by 24% to USD 415 million in the first two months of 2024, despite a slight decline in Feb-24 due to the Lunar New Year. Demand from China and the US notably increased. However, prices have yet to rebound to 2023 levels, and challenges persist, including shrimp diseases and weak market demand. Meanwhile, the US announced preliminary countervailing duties on imported shrimp from Ecuador, India, and Vietnam, potentially impacting their exports. In response, Ecuador is considering boosting shipments to Japan, capitalizing on its recent surge in exports to the country driven by stable prices amid reduced demand from the US and China, despite a declining market in Japan.

Vietnam Record Shrimp Export Rise

Vietnam’s shrimp export value reached USD 415 million in the first two months of 2024, a 24% increase compared to the same period in 2023. Despite a decline of 11% year-on-year (YoY) in shipment value in Feb-24, totaling USD 173 million, attributed to the Lunar New Year, robust growth in Jan-24 ensured an overall cumulative turnover rise. Vietnamese shrimp exports were predominantly destined for China with a remarkable 143% YoY surge and the United States (US) with a 26% YoY increase. Although prices of raw white-leg shrimp and black tiger prawn in Vietnam showed a gradual rise since Jan-24, they have yet to rebound to the levels observed during the corresponding period in 2023. The average export prices of Vietnamese shrimp to the US, the United Kingdom (UK), and Korea recorded an increase in the Jan-Feb period, while shipment prices to China, the European Union (EU), and Japan witnessed a decline.

However, challenges persist in the shrimp industry, including concerns over shrimp diseases, weak market demand, and a lack of clear recovery in the EU, Japan, and Korean markets. To address these challenges, the shrimp industry is committed to enhancing competitiveness and focusing on value-added product production, supported by government initiatives and collaborations across various sectors, aiming to rejuvenate shrimp exports and propel growth in the current year.

US to Impose Tentative Countervailing Duties on Shrimp Imports

According to the Vietnam Seafood Exporters and Producers Association, the US Department of Commerce (DOC) revealed preliminary countervailing duties (CVD) on imported shrimp on March 26, affecting Ecuadorian, Indian, and Vietnamese producers suspected of benefiting from national subsidy programs. The tax list has been issued, with Indonesian suppliers currently unaffected. Companies listed must pay deposits, pending the determination of final countervailing tax rates in the autumn and winter, with refunds possible if investigations find no harmful subsidies. Shrimp imports from these countries comprised 90% of the US's total in 2023, valued at USD 5.6 billion, yet only Ecuador saw an increase of 3%, while India, Indonesia, and Vietnam witnessed declines of 2%, 12%, and 13% respectively compared to 2022.

The Ecuadorian shrimp industry is responding to potential US import restrictions by considering increased shipments to Japan, capitalizing on the situation. Over the past five years, Ecuador's shrimp exports to Japan surged by 4.5 times, reaching 7.03 thousand metric tons (mt) in 2023. This growth was fueled by narrowing price gaps with Indian shrimp and stable prices in Ecuador, stemming from reduced demand from the US and Chinax. Despite a declining shrimp market in Japan, it remains a significant consumer, with total imports projected to hit a 40-year low of 200 thousand mt in 2023.