Shrimp Export Boom in 2025, But Challenges Lie Ahead for Vietnam
Shrimp exports top $900 million in Q1, however, they encounter challenges
Vietnam's shrimp industry is experiencing a surge in exports, with a whopping $1.3 billion earned in the first four months of 2025 - a staggering 35% increase compared to the same period last year. April alone contributed an impressive $350 million!
But, it's not all sunshine and seawater for our seafood giants. Despite this impressive revenue, they're wrestling with a few tough challenges, particularly in the US market.
The US remains a key player in the shrimp game, but it's also been slapping on hefty tariffs, with a proposed 46% soon to be levied on Vietnamese goods if a temporary suspension doesn't hold up. Two ongoing lawsuits in the US - one on anti-dumping (AD) and the other on countervailing duties (CVD) - add to the pressure.
To stay afloat, Vietnamese processors are racing the clock. They're shipping boatloads of shrimp to the US by May 20, aiming for a July 9 arrival - the deadline to dodge those fearsome tariffs. The 'golden window' for successful shipments lies between May 15-20.
US importers are also ramping up their buying spree to avoid these high tariffs. But the long-term game is about more than just dodging duties.
Industry experts suggest that seafood exporters should focus on deep processing, building the 'Vietnamese shrimp' brand synonymous with quality, sustainability, and transparency. It's also crucial to leverage free trade agreements (FTAs), such as the EVFTA, CPTPP, and RCEP, and tap into promising markets like Japan, South Korea, Canada, Europe, and the potentially lucrative Halal market.
Experts also advise adopting water-saving aquaculture technologies, improving input efficiency, and minimizing antibiotic use. Strengthening disease control, ensuring food safety in aquaculture, encouraging recycling technologies, using agricultural by-products, promoting circular economy practices, and reducing greenhouse gas emissions are equally important.
The US isn't the only challenge, though. Compliance issues with the Marine Mammal Protection Act could lead to export bans if regulatory standards aren't met by November 30, 2025. And let's not forget about the competitive threat from Chinese products disguised as domestic goods to bypass US restrictions.
Workers process shrimp for export at the Bá Hải Company in Phú Yên Province. - VNA/VNS Photo Vũ Sinh
So, it's not just about keeping up with Joneses (or rather, Ecuadorians) in terms of price competition. It's about staying ahead of the game with innovative strategies and sustainable practices to maintain a strong foothold in the global market. Game on, shrimp exporters!
- Vietnam's shrimp industry, facing challenges in the US market, looks towards building a strong brand synonymous with quality, sustainability, and transparency.
- Leveraging free trade agreements like EVFTA, CPTPP, and RCEP, the industry aims to tap into promising markets such as Japan, South Korea, Canada, Europe, and the Halal market.
- To ensure long-term success, seafood exporters must focus on deep processing and adopting water-saving aquaculture technologies, improving input efficiency, and minimizing antibiotic use.
- In addition, strong disease control, food safety in aquaculture, recycling technologies, circular economy practices, and reducing greenhouse gas emissions are essential principles to uphold.
- The US isn't the only hurdle, as compliance issues with the Marine Mammal Protection Act and competitive threats from Chinese products disguised as domestic goods are also concerns.
- With the deadline to avoid hefty tariffs fast approaching on July 9, 2025, shrimp exporters must act swiftly to maintain profitability and meet regulatory standards.
- AI and law, playing key roles in the global business environment, could potentially aid in strategic decision-making and compliance with international laws for the shrimp export industry, thereby fostering a culture of innovation and efficiency.
