Seafood Exports in 2021: Need to Make a Difference for Export Products

In 2021, the seafood industry is still considered to enjoy many advantages from FTAs, but to be able to conquer diverse markets, it is necessary to make a clear difference for products in both quality and appearance.
According to the Vietnam Association of Seafood Exporters and Producers (VASEP), in 2020, the country's seafood output will reach 8.4 million tons, a slight increase of 3% compared to 2019, of which aquaculture accounts for 54% with nearly 4.6 million tons, exploitation accounts for 46% with over 3.8 million tons. Seafood exports reached $8.4 billion, down 1.9% compared to 2019, of which farmed seafood (shrimp, pangasius) accounted for 62% with 5.2 billion USD, exploited seafood accounted for 38% with USD 5.2 billion. 3.2 billion USD.

The Covid-19 epidemic, which lasted for the whole year of 2020, disrupted global seafood trade, changing the trend of consuming seafood products. Accordingly, Vietnam's main export products also fluctuated according to market trends, leading to an increase in exports of white leg shrimp, marine shrimp, variable fish, and crabs, while exports of pangasius, tuna and squid decreased. octopus slightly reduced.

Seafood exports in 2021 are expected to benefit from FTAs

The Covid-19 epidemic reduced the demand for seafood imports in the markets, but the main importing countries of Vietnamese seafood such as the EU, China, Korea, and Japan slightly reduced imports from Vietnam (down 3-6 years). %), while the largest market, the US, still saw a significant increase (+10%) in seafood imports from Vietnam. However, from July, exports started to recover and increased in the third quarter (with a growth rate of 10% to 13.0%.

However, at present, the import demand of the markets is still good, but the seafood trade is deadlocked because of the lack of empty containers to load goods to export to other countries and the freight charges have increased many times, causing export activities to be delayed. stagnation and decline.

In 2021, the seafood trade situation will still be strongly affected by the Covid-19 pandemic, even this is still the main factor influencing the trend of Vietnam's seafood import and export. However, Vietnam can still maintain its competitive advantage in raw material supply compared to other countries. In addition, free trade agreements will continue to be a lever for Vietnam's seafood exports to recover in some markets. After one year, Vietnamese seafood enterprises will have more experience and flexibility to adapt to fluctuations and changing needs and tastes of the market.

Therefore, it is forecasted that seafood export in 2021 will have better results than in 2020, estimated at 8.8 billion USD, up nearly 5%.

According to the General Department of Customs, in January, seafood export value was estimated at 600 million USD, up nearly 20% over the same period in 2020. The US, Japan, China and South Korea are the top 4 import markets. of Vietnamese seafood. According to VASEP, in 2021, seafood exports are forecast to reach over US$9.4 billion, up 10% compared to 2020.

Assessing the opportunities of the seafood industry in 2021, VASEP analyzes, in 2020, the world will experience the worst economic recession since World War II, with an estimated global gross domestic product (GDP). decreased by about 3.8%. According to experts' forecasts, the world economy is likely to recover with an increase of about 3.1% in 2021. However, according to international economic experts, the consequences of the Covid pandemic -19 for the global economy will persist.

However, the seafood industry still has opportunities from new generation FTAs ​​such as the Regional Comprehensive Economic Partnership (RCEP), the EVFTA Agreement, and most recently the FTA between Vietnam and the United Kingdom. UKVFTA)… These FTAs ​​are having a good impact on Vietnam's seafood exports, contributing to improving the competitiveness of seafood products in the coming time.

General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP) Truong Dinh Hoe analyzed that in 2020, due to the impact of the Covid-19 epidemic, only the US and China markets could maintain positive growth. , an increase of 13% and 5%, respectively. Particularly for the EU market, although it declined, it recorded a significant breakthrough after the EVFTA took effect.

In 2021, the seafood industry still enjoys many advantages from FTAs, but to be able to conquer diverse markets, it is necessary to make a clear difference to products in terms of both quality and appearance. Specifically, as the main export shrimp product, when it is difficult to reduce the price, it is forced to make a difference in quality to compete with similar products from other countries such as India, Indonesia... Or like fish To investigate, it is necessary to diversify deeply processed products to meet the needs of consumers in each country and region.

[SOURCE: Vietnam's Economy]