Vietnam earned just $1 billion from seafood exports to its northern neighbor in the first nine months of 2023, down 18 per cent year-on-year.
Though seafood exports to China have fallen this year, the potential the market holds remains wide open for Vietnamese businesses, the Vietnam Association of Seafood Exporters and Producers (VASEP) has said.
Vietnam’s seafood exports to China stood at $1.6 billion in 2022, a 66 per cent increase year-on-year and reportedly records in both revenue and growth after falling to $990 million in 2021 due to Covid-19.
In the first nine months of this year, however, Vietnam earned just $1 billion from seafood exports to China, down 18 per cent compared to the same period last year due to falling seafood prices in other export markets and high inventories.
However, VASEP believes that the prospects remain and there is still much space in China for seafood exporters, for the following reasons.
First: Some shifts in economic investment in China are seen as opportunities for Vietnam’s seafood industry. High-profit and high-yield economic sectors are receiving more investment attention, leading to a decrease in investment in aquaculture. The country’s seafood exports have also gradually declined over recent years due to the impact of Covid-19 and trends towards economic transition. As a result, economic analysts predict that China will increasingly rely on imported seafood, similar to Western countries.
Second: Post-Covid-19, China’s trade with the world has returned to normal, and its economy is exhibiting positive signs, with seafood demand recovering.
Third: Vietnam’s favorable geographical position means its businesses face lower logistics costs compared to others exporting to China.
Fourth: Political upheaval, inflation, energy crises, and other matters have dampened demand for seafood in countries like the US, the EU, and Japan, while China is importing higher volumes.