It is forecast that thanks to the effectiveness of the EVFTA, the European markets will have high demand for importing shrimp at year-end. Large-scale shrimp exporters have begun to push up production to ensure competitive capacity in this potential market.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the EU is Vietnam's third largest shrimp import market (after the US and Japan), accounting for 14.6% of Vietnam's total shrimp export value.

The shrimp suppliers in Asia for the EU market include India, Vietnam, Bangladesh, and Indonesia. In which, Ecuador is emerging as a strong rival against shrimp supplies from Asia, including Vietnam.

According to the analysis of Ms. Kim Thu, shrimp market expert of VASEP, thanks to advantages of competitive prices and transportation, Ecuador has penetrated the European market with products ranging from peeled, backless, peeled back and tailed shrimp to raw and steamed shrimp products. These products are all raised on ASC certified farms. Ecuador has also planned to position high-quality, sustainable shrimp products in the European market.

Before 2019, India was always the lead, followed by Vietnam, Bangladesh and Indonesia. By 2020, Vietnam has become the largest shrimp supplier in Asia for the EU, followed by India, Bangladesh, and Indonesia.

According to Ms. Kim Thu, in the first seven months of this year, Vietnam's shrimp exports to the EU reached US$320.1 million, up 26% over the same period last year. In the first half of August 2021, exports to this market reached US$15.5 million, down 47% over the same period. As of August 15, 2021, Vietnam's shrimp exports to the EU reached US$335.7 million, up 18% year on year.

Compared to other regions, Asian suppliers hold the highest share in the EU shrimp market. Particularly, peeled back shrimp (PD) and peeled tailed shrimp (PDTO) are the two most imported shrimp products to the EU from Asia.

Vietnam mainly exports to the EU products such as frozen steamed PD black tiger shrimp, frozen Nobashi vannamei, frozen fresh HLSO vannamei, frozen Nobashi vannamei, white shrimp (Lipopenaeus vannamei), peeled, frozen sushi boiled , frozen PD fresh black tiger shrimp, frozen boiled sushi shrimp, frozen fresh black tiger shrimp, PTO headless black tiger shrimp, fresh frozen, frozen PD black tiger shrimp, IQF frozen boiled iron shrimp, frozen boiled PTO shrimp, PD vannamei shrimp, fresh frozen IQF, skewered whiteleg shrimp. Vietnam is the largest supplier of steamed shrimp and value-added shrimp to the EU.

Since the beginning of the year, the growth rate of Vietnam's shrimp exports to the EU has achieved positive results, just behind the US market. By July this year, exports to the EU maintained a double-digit growth rate. However, in August, exports to the EU began to decline sharply which resulted from the social distancing order under Directive 16 in Ho Chi Minh City and 18 southern provinces, which has disrupted production and processing activities of local businesses.

One year after the effectiveness of the EVFTA, Vietnam's shrimp exports to the EU market have also recorded good growth. From now until the end of the year, the EU markets maintain high demands for shrimp imports at year end, especially at Christmas. This market is gradually opening up since the vaccine has been widely administered.

Currently, large-scale shrimp processing and export enterprises in the Mekong Delta are planning to bounce back to production to meet export orders in the last months of the year.

At Minh Phu Group Joint Stock Company (Ca Mau), most workers have been given priority to receive the first dose of vaccine. The company is expanding production in the direction of green factories, green production, to meet orders of customers of more than 50 countries and territories.

At Sao Ta Food Joint Stock Company (Soc Trang), many effective prevention measures along with the flexibility to apply the green zone of the province have been implemented successfully.

The company has increased the number of workers by about 80% compared to the previous period of "3 on the spot” and is employing more to continuing to boost production of shrimp processing for export, which has been interrupted for nearly two months.

Source: Custom News