In 2024, shrimp exports generated 4 billion USD, accounting for 40% of the total seafood export turnover, with deep-processed shrimp making up more than 40% of the total value.
FTAs open up opportunities
Vietnam’s network of FTAs, covering more than 60 countries and economies, has provided a crucial foundation for businesses to expand into international markets. According to Nguyen Hoai Nam, General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam’s seafood exports have reached over 160 markets, with billion-dollar export revenues coming from markets where Vietnam has bilateral or multilateral FTAs.
Economic experts note that while the European Union (EU) is one of the world’s largest seafood consumers, Vietnam’s market share remains relatively small, indicating significant growth potential. In this context, the Vietnam-EU Free Trade Agreement (EVFTA) is expected to continue serving as a “catalyst” for boosting Vietnam’s seafood exports to the EU.
Vietnam has signed two next-generation FTAs with the UK: the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the UK-Vietnam Free Trade Agreement (UKVFTA). The UK is Vietnam’s sixth-largest individual market for shrimp imports, accounting for 5.5% of total export revenue. In January 2025, Vietnam’s shrimp exports to the UK reached over 16 million USD, an 8% increase compared to the same period in 2024, maintaining strong growth momentum.
For the Middle East, the Comprehensive Economic Partnership Agreement (CEPA) between Vietnam and the United Arab Emirates (UAE), signed in October 2024, has opened up promising opportunities for Vietnam’s seafood exports. The UAE is one of Vietnam’s leading trade partners in the Middle East and serves as a vital gateway to markets across the region.
According to Ho Quoc Luc, Chairman of the Board of Directors at Sao Ta Foods Joint Stock Company, thanks to FTAs and the efforts of Vietnamese enterprises, Vietnamese shrimp has become a favoured product in key markets such as Japan, the Republic of Korea, and EU member states. The extensive FTA network not only connects Vietnam’s shrimp industry with demanding markets but also helps maintain Vietnam’s market position.
However, Tran Thanh Hai, Deputy Director of the Import-Export Department at the Ministry of Industry and Trade, noted that while FTAs offer export expansion opportunities, they also present challenges. Vietnamese shrimp face intense competition from major shrimp-producing nations such as Ecuador, India, and Thailand. Additionally, strict regulations on traceability and quality standards in the US and EU pose challenges that must be addressed. To fully leverage FTAs, enterprises must enhance product quality and value addition while ensuring compliance with stringent market requirements.
The Ministry of Industry and Trade has implemented comprehensive measures to support and expand export markets. Key efforts include negotiating with trade partners to remove technical barriers, reduce tariffs, and facilitate easier access for Vietnamese seafood to potential markets. Ensuring product quality control, closely monitoring antibiotic residue levels, and complying with international food safety standards remain priorities to build consumer trust.
Accelerating deep processing
Effectively utilising FTAs is a key strategy for Vietnam’s shrimp industry in the coming years. In addition to government support, businesses must diversify their product range to enhance competitiveness. According to VASEP, Vietnam has a strong advantage in deep processing. Popular deep-processed shrimp products include steamed shrimp, breaded shrimp, tempura shrimp, shrimp skewers, shrimp dumplings, and more, which are well-received in various countries.
Le Van Quang, CEO of Minh Phu Seafood Group, noted that Vietnamese enterprises have successfully developed high-value-added shrimp products that countries like Ecuador and India either do not produce or only process in limited quantities. These nations may take five to ten years to reach Vietnam’s current level of shrimp processing expertise.
Ho Quoc Luc, Chairman of Sao Ta Foods, added that Vietnamese shrimp has risen to a leading position in processing, securing high-end markets such as Japan, the Republic of Korea, the US, the EU, and Australia. Vietnam’s shrimp processing capabilities continue to improve, offering an increasingly diverse product range.
Of the 4 billion USD in shrimp export revenue achieved in 2024, deep-processed shrimp accounted for over 40% of the total value. According to VASEP, export revenues from deep-processed shrimp products are growing faster than fresh or frozen shrimp. Vietnam is striving to become the second-largest supplier in the US market for steamed, seasoned, and breaded shrimp products.
Meanwhile, competitors such as Ecuador and India have recently started to enter the deep processing sector. Sociedad Nacional de Galapagos (Songa), a leading Ecuadorian shrimp exporter with sales exceeding 600 million USD in 2024, has invested in value-added processing lines with a production capacity of approximately 91 tonnes of raw white-leg shrimp per day. This move aims to maximise Ecuador’s low-cost domestic shrimp supply and proximity to key markets like the EU and the US.
Vietnam’s shrimp processing capabilities remain far ahead of India and Ecuador in the high-end market segment. To maintain this advantage, enterprises must continue investing in and developing their strengths. European markets, prioritise high-quality, sustainably sourced, and eco-friendly products with clear traceability.
To expand Vietnam’s shrimp market share in Europe, businesses must meet stringent quality and packaging standards. At the same time, to sustain growth and competitiveness, the shrimp industry must focus on reducing production costs and improving efficiency.
By leveraging FTAs, enhancing economic diplomacy, expanding niche markets, applying advanced technology in breeding quality shrimp, promoting sustainable farming practices, and investing in deep processing, Vietnam’s shrimp industry can unlock new and premium markets, reinforcing the reputation and distinctiveness of Vietnamese shrimp on the global stage.
