In May 2022, Vietnam's shrimp export turnover reached 457 million USD, an increase of 31% compared to the same period last year. Accumulating the first five months of 2022, Vietnam's shrimp export turnover went up 41% in comparison to the same period last year, to 1.9 billion USD. In May, the growth rate of Vietnam's shrimp exports to the US slowed down while exports to China went up.
After recording a growth rate of 52% in April, Vietnam shrimp exports to the US decelerated in May, only increasing 2.8% from the same period last year, reaching 99 mil USD. Vietnam's shrimp export to this market in the first 4 months has experienced a growth rate ranging from 25% to 61% compared to the same period last year. In the first 5 months of 2022, Vietnam's shrimp export to the US reached 390 million USD, rising 21% compared to the same period last year.
In the past few months, the US imported shrimp in large quantities from Vietnam, Indonesia, India, and Ecuador, leading to high inventories. This could reduce the buying demand of US importers. Total US shrimp imports in April this year have shown a drop compared to the previous month.
Besides, the rising inflation in the US, China’s new policy on COVID prevention, the continuous conflict in Ukraine, labour shortages and difficulties in the domestic supply chain are all affecting sales and the shrimp-consuming demand in the US.
Vietnam's shrimp exports to the US in the coming months are expected not to increase as strongly as in the first months of the year. It was only in September that the US demand for shrimp imports recovered strongly again to serve Thanksgiving and other year-end festivals.
Since March, Vietnam's shrimp exports to China have been accelerating, continuously recording a 3-digit growth. Vietnam's shrimp export growth rate to this market from January to May ranged from 126% to 140%. In May, Vietnam's shrimp exports to China reached 88 million USD, up 126% compared to May 2021. Accumulating in the first 5 months of the year, shrimp exports to this market achieved 275 million USD, rising 101% over the same period last year.
Currently, China's strict COVID-19 prevention and control policy has been loosened, creating conditions for China's shrimp imports to increase sharply again. China's shrimp imports in the first four months of this year increased 26% in volume and 51% in value over the same period last year, to 224,000 tons and 1.45 billion USD, respectively.
The two largest shrimp suppliers to China, Ecuador and India, both had shipments rejected by Chinese authorities in April due to traces of the Sar-CoV2 virus on the product packaging. As a result, shrimp imports from Ecuador and India into China dropped by 28% and 30%. China might import more shrimp from other sources, including Vietnam.
The Chinese government is working on a favorable business policy, providing stimulus packages to encourage consumer spending. This is expected to boost shrimp consumption in China. Therefore, Vietnam's shrimp export to China is predicted to accelerate in the next few months.
Vietnamese shrimp exports in June to major markets are not expected to fluctuate much compared to the trend in May and depend heavily on the supply of raw shrimp.
The unfavourable weather and the unusual first rain of the season affected shrimp production and, consequently, led to negative results in the sources of shrimp raw materials. Therefore, in the next few months, it is likely that shrimp materials will be in short supply. Shrimp exports in the second quarter are also forecast to slow down compared to the first quarter.