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Australia is second-largest shrimp import market of Vietnam in CPTPP

26/04/2023    421

 Australia is Vietnam's second largest shrimp import market in the CPTPP market after Japan, accounting for 27% of Vietnam's total shrimp export value to this market.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), in February 2023, Vietnam's shrimp exports to Australia recorded a growth signal, reaching 19 million USD, up 7%. However, in January 2023, shrimp exports to this market decreased sharply due to the Lunar New Year, so by the first half of March 2023, shrimp exports to this market reached 36 million USD, down 31% compared to the same period in 2022.

According to the analysis of Ms Kim Thu, a shrimp market expert of VASEP, Australia is the second largest shrimp import market of Vietnam in CPTPP after Japan, accounting for 27% of Vietnam's total shrimp export value to this market segment. Australia is also Vietnam's 5th largest shrimp import market, accounting for 8%.

In 2022, Vietnam's shrimp exports to Australia recorded the second-highest growth after China. As a result, the export value to the Australian market in 2022 reached USD 272 million, up 44% compared to 2021. While import demand from the US and EU decreased in the last quarter of 2022, import demand from Australia remained steady since the beginning of the year.

In the 5 years (2018-2022), Vietnam's shrimp exports increased from USD 115 million in 2018 to USD 272 million in 2022, an increase of 137%. The average annual growth rate is 25%. During these five years, shrimp exports to Australia grew 11-44%. The highest growth milestone of 44% was recorded in 2022, proving that measures to promote the export of goods from Vietnam to Australia through diplomatic activities, trade promotion, and support from FTAs have resulted in good results. In five years, the export of live, fresh and frozen white shrimp and giant tiger prawn products recorded a strong 3-digit growth, especially the export value of live/fresh/frozen white shrimp in 2022 recorded a growth of 740 % compared to 2018. After five years, the export value of processed white shrimp grew less while the export of processed giant tiger prawns recorded a decrease.

In 2022, in the structure of Vietnamese shrimp products exported to Australia, white shrimp accounted for 95.5%, marine shrimp accounted for 4.2%, and giant tiger prawn accounted for 0.3%. After five years, the proportion of white shrimp exports to Australia increased sharply while the proportion of marine shrimp and giant tiger prawns tended to decrease.

In the Australian market, Vietnamese shrimp have competitive supplies from Thailand and China. From 2015 to now, Vietnam has firmly maintained its No. 1 position in shrimp supply to Australia, with the market share of Vietnamese shrimp increasing from 32% in 2015 to 69% in 2022, while Thailand's market share decreased from 23 % in 2015 to 14%, China's market share fell from 28% to 8%.

Along with the three agreements AANZFTA, CPTPP and RCEP between Vietnam and Australia, Vietnamese shrimp products exported to Australia enjoy 0% tax incentives. However, Vietnamese shrimp entering Australia, especially undercooked shrimp, are still subject to strict inspection steps in Australia.

In the context of shrimp exports facing many difficulties due to the decline in import demand from main markets such as the US and EU, with 3 FTAs with Australia and opportunities for positive cooperation relations, Australia is still considered an important market for Vietnamese shrimp shortly.

According to Ms Le Hang, Communications Director of VASEP, the open market and tariff incentives from the CPTPP offer opportunities to increase seafood exports to Australia in recent years, which is also a potential for seafood export enterprises in the current difficult period.

Source: Customs News