Boost in Vietnamese Shrimp Exports Amidst US Trade Policies
Vietnam's primary shrimp trading partner shifts towards China
In the face of changing trade dynamics, the Vietnamese shrimp industry has shown resilience and adaptability. Here's a closer look at the current state of Vietnamese shrimp exports:
Trade Agreements and Competitive Edge
- The EU-Vietnam Free Trade Agreement has given Vietnam a competitive edge over countries like Indonesia and Thailand, which lack similar trade preferences [1].
- The EU continues to post stable growth in Vietnamese shrimp imports, with shipments improving due to the agreement [2].
Regional Shrimp Imports
- Greater China, including Hong Kong, imported nearly $595 million worth of Vietnamese shrimp. The increase in imports is due to domestic supply shortages and rising seasonal demand, particularly for lobster and high-end seafood products [3].
- Japan remains the third-largest buyer of Vietnamese shrimp, with high consumption of processed products [3].
The Shrimp Sector's Growth
- Whiteleg shrimp accounts for over 60% of Vietnam's total shrimp exports. The other shrimp segment has witnessed the highest growth at 124% [4].
- Despite the tariffs, Vietnamese shrimp exports have shown a strong recovery [4].
US Trade Policies and Their Impact
- The U.S. has imposed a 20% tariff on Vietnamese shrimp, replacing the previous 10% rate. There is a possibility of even higher tariffs, up to 40%, for goods suspected of being rerouted Chinese transshipments [2].
- Despite the initial surge in the first half of 2025 due to exporters' strategic pre-shipping efforts ahead of the anticipated tariff implementation, the U.S. now accounts for only 17% of the market share, while China has become the largest market [4].
Adapting to the Challenges
- Vietnamese exporters are pivoting their strategy by diversifying their markets, focusing on other regions like China to mitigate the impact of U.S. tariffs [4].
- The unstable trade environment poses challenges but also presents opportunities for Vietnamese exporters to adapt and explore new markets [4].
The seafood sector anticipates a boost in exports due to the strategies being planned by shrimp exporters to boost year-end growth. The shrimp sector requires strategies to meet the export target, according to insiders. However, Vietnamese shrimp exporters face potential risks of anti-dumping duties exceeding 35% and potential countervailing duties by the end of the year. The export of shrimp is moving towards sustainability, with black tiger shrimp and other varieties making up the remaining percentage of Vietnam's shrimp exports.
[1] EU-Vietnam Free Trade Agreement
[2] U.S. Tariffs on Vietnamese Shrimp
[3] Vietnam's Shrimp Exports to Greater China
[4] Vietnam's Shrimp Exports Show Strong Recovery
- The booming retail sector in Vietnam, driven by the growth in e-commerce and rising consumer spending, presents an opportunity for the shrimp industry to expand its business and increase exports.
- In light of the changes in the global finance market, some investors are now focusing on the potential for investment in the Vietnamese shrimp industry, recognizing its resilience and growth potential despite US trade policies.
