
It is harvesting season and the quantity of raw materials is good to supply. Main size of Black Tiger raw material is 25 pcs/kg, while main size of Vannamei falls on 40 pcs/kg. The raw materials price is still low compare to July, especially low on small sizes 70-100 pcs/kg. Shrimp exporters are focusing on large sizes as it takes less workforce and make high productivity. Shrimp farmers worry about the low materials price and financial difficulties, causing the delay to start a new stocking. This problem would lead to shortage of raw materials by end of the year.
VASEP and 13 industry associations proposed to the Prime Minister the “Score-based epidemic prevention and control” strategy to restore safe production and business in the context of the new anti-epidemic to unify management across the country in order to gradually adapt to economic recovery, but still managed to control the translation.
Mr. Nguyen Hoai Nam – Deputy Secretary General of VASEP said that only 30-40% of enterprises have enough capacity to resume production immediately after the end of social distancing. The remaining enterprises are very difficult or need a long time to restore production because the supply chain of raw materials is broken, businesses lose customers due to the long distance, and the delivery schedule is not guaranteed. It is especially difficult to gather the labor force as it was initially because workers have not been vaccinated, so they cannot go to production facilities or have returned to their hometown, isolated, and are being treated for COVID-19.
Accumulated in the first eight months of 2021, Vietnam’s seafood exports reached nearly $5.6 billion, still increasing by about 7% thanks to high export results in the first 7 months of the year. In which, shrimp exports increased by 6.4% to 2.45 billion USD, pangasius exports increased by 8.8% to 993 million USD, tuna exports grew 12%, cephalopod and other fish exports increased by 4-5%.
The Covid-19 epidemic broke out strongly in the focus area of Vietnam’s seafood in August. Exports to all markets in August 2021 decreased by 16 – 50% compared to the same period in 2020. Accordingly, exports to China and Japan both decreased sharply by 36%, to the EU decreased by 32% (only to the Netherlands decreased by nearly 50%, Germany decreased by 42%). Exports to the US and Russia decreased by at least 16%. Exports to the UK fell by 48%, to Australia and Canada by 35% and 37% respectively.
With the EU’s commitment to reduce tax to 0% for seafood products (including shrimp) for Vietnam in the EVFTA Agreement, Vietnam’s seafood exports in general and shrimp exports in particular will have an advantage. on tariffs and thus can adjust prices more competitively in the near future. Expanding and maintaining the domestic supply of raw materials to meet the rules of origin of goods, especially in the context that the global supply chain is being disrupted due to the impact of Covid-19, is a key factor to Vietnam’s seafood industry can grow exports in the EU market thanks to the push from EVFTA.
Vietnamese shrimp will increasingly face stronger competitive pressure from India and Ecuador in the US market. The demand for shrimp imports from the US market from now until the end of the year is still very large to meet domestic demand for year-end holidays. Inventories are low, US importers are competing to buy to ensure product supply. Retailers are also trying to ensure supply in the US market until the first quarter of 2022.
Covid-19 situation:
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