Vietnamese seafood sector to enjoy strong growth in 2021-2030: Report

Monday, January 24, 2022  11:28

Vietnamese seafood sector to enjoy strong growth in 2021-2030.

Seafood industry is projected to enjoy strong growth in the 2021-2030 period thanks to the increasing per capita seafood consumption in the world, according to a report published by the Organisation for Economic Cooperation and Development and the Food and Agriculture Organisation of the UN.

Free trade agreements (FTAs) signed between Vietnam and its partners will also help spur the seafood industry’s development in 2022.

According to the Agricultural Outlook Report 2021-2030, the world's per capita seafood consumption is expected to reach 21.2kg by 2030, up from an average 20.5kg in 2018-2020.

Per capita consumption of seafood products will increase by 3.6% during 2020-2030.

In 2030, aquaculture is expected to provide 57% of the fish destined to human consumption, 4% higher than that in 2018-2020.

Consumption of seafood is hoped to expand on all continents, driven by rising incomes, urbanisation, production expansion, improved distribution channels and product innovation. Consumption is expected to continue to increase over the next decade.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), shrimp continues to be the factor driving the growth of Vietnam’s seafood exports. The shrimp export value is forecast to rise by 10% compared to 2021 to US$4.3 billion in 2022.

The recovery of the food service industry in the US - Vietnam's largest shrimp and tra fish importer - will foster the growth of the Southeast Asian nation’s seafood industry in 2022.

Vietnamese businesses have flexibly adjusted their production activities in the context of COVID-19 pandemic, thus meeting the growing demand in the US market.

In the first 11 months of 2021, the US imported more than 726,000 tonnes of shrimp, up 7% year-on-year, mainly from Vietnam, India, Ecuador, Indonesia, and Thailand.

VASEP said Vietnam’s shrimp exports to the US are expected to increase sharply in 2022, adding that Vietnam’s transition to flexible adaptation to COVID-19 will help the country gain market share in the US.

In addition, the US doubled the anti-dumping duty on shrimp exported from India to 7.15% from 3% in November 2021, thereby enhancing the competitive advantage for India’s rival countries, including Vietnam.

Besides the US market, the EU-Vietnam Free Trade Agreement (EVFTA) will also help Vietnam gain a competitive advantage in the EU in 2022.

Under the EVFTA, for Vietnam’s shrimp products exported to the EU, the tax rate for black tiger shrimp is 0%, while the rate for frozen white-leg shrimp will gradually reduce to 0% by 2025.

Aside from shrimp, revenue from tra fish exports is expected to reach about US$1.65 billion in 2022, equivalent to a year-on-year increase of 7%.

According to the Directorate of Fisheries of the Ministry of Agriculture and Rural Development, Vietnam’s seafood export turnover in 2021 was estimated at US$8.89 billion, up 5.7% year-on-year, and 4.6% higher than the target set for the year.