In July 2022, Vietnam’s white shrimp exports to the United States fell by more than 50%!

In July 2022, Vietnam’s white shrimp exports continued to decline in June, reaching US$381 million, down 14% year-on-year, according to the Vietnam Seafood Producers and Exporters Association VASEP report.
Among the major export markets in July, white shrimp exports to the U.S. fell 54% and white shrimp exports to China fell 17%. Exports to other markets such as Japan, the European Union, and South Korea still maintained a positive growth momentum.
In the first seven months of the year, shrimp exports recorded double-digit growth in the first five months, with a slight decline starting in June and a steeper decline in July. Cumulative shrimp exports in the 7-month period totaled US$2.65 billion, a 22% increase over the same period last year.
U.S:
Vietnam’s shrimp exports to the U.S. market started to slow in May, fell 36% in June and continued to drop 54 % in July. In the first seven months of this year, shrimp exports to the U.S. reached $550 million, down 6 % year-on-year.
Total U.S. shrimp imports have plateaued since May 2022. The reason is said to be high inventory. Logistics and transportation issues such as port congestion, rising freight rates, and insufficient cold storage have also contributed to lower U.S. shrimp imports. The purchasing power of seafood, including shrimp, has also declined at the retail level.
Inflation in the U.S. makes people spend cautiously. However, in the period ahead, when the U.S. job market is strong, things will be better. No shortage of jobs would make people better off and could increase consumer spending on shrimp. And U.S. shrimp prices are also expected to face downward pressure in the second half of 2022.
China:
Vietnam’s shrimp exports to China fell 17% to $38 million in July after strong growth in the first six months. In the first seven months of this year, shrimp exports to this market reached US$371 million, a 64 percent increase from the same period in 2021.
Although China’s economy has reopened, import regulations are still very strict, causing many difficulties for businesses. In the Chinese market, Vietnamese shrimp suppliers also have to compete fiercely with suppliers from Ecuador. Ecuador is developing a strategy to increase exports to China to make up for lower exports to the United States.
Shrimp exports to the EU market were still up 16% year-on-year in July, supported by the EVFTA agreement. Exports to Japan and South Korea remained relatively stable in July, up 5% and 22%, respectively. Train fares to Japan and South Korea are not as high as in Western countries, and inflation in these countries is not a problem. These factors are believed to help maintain the steady growth momentum of shrimp exports to these markets.