Viet Nam’s seafood export industry is on track to hit its projected target of $11 billion this year, despite experiencing slower growth in exports to the U.S. due to increased tariffs. In the first 10 months of the year, exports witnessed a 15% year-on-year increase and reached a figure of $9.5 billion. This surge was primarily driven by shrimp exports, which contributed to more than 40% of the total exports, according to the Viet Nam Association of Seafood Exporters and Producers (VASEP).

U.S. Export Slowdown

The third quarter saw a slow down in exports to the U.S., particularly in shrimp and pangasius, following the 20% tariff on seafood imports from Viet Nam, which was implemented in August. However, this slump has not hampered overall growth.

Emerging Markets and Opportunities

Promising opportunities for export growth are emerging in other markets, particularly China. In the first 10 months of the year, China purchased over $2 billion worth of seafood from Viet Nam, marking a significant increase of 32%. The main products exported to China include lobster, marine fish, and live crab, with demand consistently on the rise.

Despite a weakening yen, exports to Japan also increased, witnessing a 15.2% rise to $1.4 billion. Other rapidly expanding markets include Canada and Australia.

Challenges Ahead

Despite the promising figures, VASEP has cautioned that the fisheries sector could encounter challenges in the coming year. The main concerns comprise the increased tariffs, potential impacts of the U.S. Marine Mammal Protection Act, and the likelihood of the E.U. maintaining its yellow card on Viet Nam due to illegal, unreported, and unregulated fishing.

The competition presented by India, Ecuador, and Indonesia is also expected to intensify in the near future, adding to the list of potential hurdles.

Source: RetailNews ASIA