Returning to normal trajectory
According to Tran Van Hung, Chairman of the Board of Directors at Hung Ca Co., Ltd., the company’s fish export volume is expected to increase by 10-20% in 2024. For instance, while the company exported around 300 containers per month in previous years, this year it has risen to about 360 containers monthly. Notably, in the final months of the year, numerous markets are requesting rapid delivery of large orders. "We are actively preparing a solid supply of raw materials to meet the demands of our international partners," Hung said.
Similarly, Tran Anh Khoa, General Director of Anh Khoa Co., Ltd. in Ca Mau Province — a company specialising in shrimp exports, noted that import markets currently have high demand, particularly from China and the Middle East. Many Chinese buyers are selling directly to retail customers through e-commerce platforms, which are experiencing rapid growth, thus requiring large volumes of goods. They rate Vietnamese shrimp as being of higher quality than those from Ecuador and India, so they are willing to pay a premium price.
According to the VASEP, after reaching the milestone of 1 billion USD in October, seafood exports stabilised in November. However, compared to the same period in 2023, the export value of this sector still increased by 17%, amounting to 924 million USD. Cumulatively, by the end of November, Vietnam's total seafood export turnover reached nearly 9.2 billion USD, marking a 12% rise from the previous year.
Commenting on these results, VASEP’s General Secretary Truong Dinh Hoe stated that after four years of disruptions caused by COVID-19, war, and inflation, market dynamics are gradually stabilising. Vietnam's seafood exports in 2024 returned to the usual trajectory, characterised by acceleration in the latter half of the year. Notably, shrimp and pangasius exports have shown positive outcomes, driven by recovering demand and prices in key markets such as the US and China, along with the competitive advantage of value-added products in markets like Japan and Australia.
The recovery and surge in major import markets, especially the US and China, have significantly boosted Vietnam's seafood exports in recent months and towards the year's end. According to data from the General Department of Customs, seafood ranks 8th among the top export categories with the highest turnover from the beginning of the year to November 15. Other product categories with large export values include computers and components, phones and accessories, machinery and parts, textiles, footwear, and wood and wood products.
Expectations for stronger growth
With the current growth momentum and the support of the Government's trade promotion activities, Vietnamese seafood enterprises are striving to expand their markets. This provides a solid foundation for the industry to expect even stronger growth in 2025. Recently, the Government directed a study to increase the scale of preferential credit programmes for the forestry and fishery sectors to around 50,000–60,000 billion VND. This initiative aims to support businesses in the industry by facilitating access to low-interest loans. Additionally, the Government approved the National Programme for the Protection and Development of Aquatic Resources until 2030, with a focus on conserving and regenerating aquatic resources to ensure the sustainable development of the seafood industry. Moreover, Vietnam's participation in and effective implementation of signed free trade agreements (FTAs) will aid the seafood industry in expanding its markets and leveraging tariff preferences.
However, according to Tran Dinh Luan, Director General of the Directorate of Fisheries under the Ministry of Agriculture and Rural Development, although aquaculture and fishing output have increased, the rising costs and prices of raw materials pose certain challenges for export-oriented production. For example, the price of raw shrimp has risen by 10–20% compared to the same period. Additionally, diseases continue to severely impact aquaculture productivity.
To address these challenges, the Directorate of Fisheries is intensifying the implementation of comprehensive and synchronised measures in line with Directive No.32 of the Party Secretariat on enhancing the Party's leadership in combating illegal, unreported, and unregulated (IUU) fishing. They are also following government directives to lift the European Commission's "yellow card" warning. Furthermore, enterprises must proactively innovate their production and business practices, anticipate trends and consumer demands, and develop advanced and sustainable development strategies. These efforts aim to build competitive advantages and enhance the global standing of Vietnam's seafood industry.
The Secretary General of VASEP echoed similar concerns, emphasising that Vietnam's seafood exports will continue to face challenges stemming from international trade policies. Specifically, the US new tax policies on Chinese goods could result in a surge of imports in the final months of 2024. While this presents an opportunity for Vietnamese seafood enterprises, it also necessitates careful preparation to manage risks, such as rising transportation costs.
Seafood businesses must adapt and adjust their operational plans to align with market dynamics. To mitigate risks, enterprises are advised to diversify export markets to reduce reliance on a single market; and to boost exports to untapped markets towards expanding and enhancing the development of the domestic market. In addition, businesses must intensify efforts to promote product image to consumers, establish strong branding and recognition for Vietnamese seafood, and consistently update market information. This involves accurately evaluating market developments to respond to changes in an appropriate and prompt manner.
Shrimp and tra fish remain the two main pillars driving the success of the seafood industry. Shrimp exports are projected to reach 4 billion USD, while tra fish may achieve 2 billion USD in export value. Together with tuna, these three products led in export revenue during November. Additionally, other seafood products, such as crabs, spider-crabs, molluscs, and octopus, have shown remarkable growth. Specifically, crabs and spider-crabs, and molluscs grew by 60% and 66% respectively.
