Newsletter June 2021
SEAFOOD EXPORTS IN THE FIRST 5 MONTHS INCREASED BY 14%
(seafood.vasep.com.vn) After increasing 22% to 749 million USD in April 2021, Vietnam’s seafood export continued to recover with a more optimistic increase in May, up 24% to nearly 790 million USD. Accordingly, the cumulative export results in the first 5 months of the year were also better, up 14% to reach USD 3.27 billion.
- Exports of key commodities continue to increase
Shrimp exports increased by 25% in May to USD 375 million, after reaching over USD 300 million in April, up 23% compared to April 2020. By the end of May 2021, Vietnam’s shrimp exports reached 1.34 billion USD, up 14%.
Pangasius exports are also recovering higher than expected with an increase of 26% to 134 million USD in May, after increasing by 25.8 million USD to 145 million USD in April. Pangasius export turnover in the first 5 months reached $623 million, up 12%.
By the end of May 2021, the export of marine products reached 1.3 billion USD, up 14.5% over the same period last year. In which, tuna exports accounted for 22% with 292 million USD, up 21% over the same period in 2020. In 2 months: April and May, tuna exports almost increased by 1.5 times over the same period last year, showing positive signals for the trend in the coming months. Exports of other marine fish accounted for 53% of marine product exports with US$698 million in the first 5 months, up 12%. The export of cephalopods increased by 11% to reach 212 million USD and also recovered well from March to now. The export of bivalve mollusks also increased sharply by 81% in May, contributing to bringing the results of the first 5 months of the year to nearly 49 million USD, up 45% over the same period last year.
- US, EU and CPTPP markets dominate export growth
After a period of being “repressed” due to restrictions and distance due to Covid, the consumption demand of Americans “explodes” not only for items such as shrimp, tuna, and salmon, which are their preferences and consumption habits, but will also increase sharply for other aquatic species such as pangasius, squid, octopus, crabs, marine fish and bivalve mollusks such as clams, mussels, etc.
In particular, shrimp products are always in the top of the US seafood consumption, will definitely be the first choice of consumers when the US fully opens 50 states from May 20, 2021. The US is accounting for 21% of Vietnam’s shrimp exports, so the recovery of this market is a lever for Vietnam’s shrimp exports to bounce back stronger in 2021. Estimated shrimp exports to the US in the first 5 months of the year reached $270 million, an increase 21% over the same period last year.
Pangasius exports to the US are also recovering and breaking out, with an increase of 136% in April and an increase of about 200% in May to USD 33 million, bringing the results of the first 5 months of 2021 to USD 135 million, an increase 57% over the same period in 2020.
Along with the US, the EU market is also an expected destination of Vietnamese seafood exporters. Although the economic recovery of this market bloc is slower than that of the US, consumption demand is recovering clearly when the Covid-19 epidemic is being controlled gradually in the EU. European importers tend to be more interested in Vietnamese seafood suppliers with tariff advantages from the EVFTA agreement and stable sources of raw materials. Vietnam’s seafood exports to the EU in May continued to increase by 30% to nearly $95 million, after a sharp increase of 36% in April with $97 million.
- Pangasius exports recover strongly
Exporters and VASEP association forecast that Vietnam pangasius exports will still grow well in the near future thanks to importing countries that are controlling the Covid epidemic well.
By the end of April 2021, the total export value of pangasius reached US$489.4 million, up 8.9% over the same period in 2020. Besides the US and China, Brazil and Thailand are two emerging markets. recently with higher-than-expected growth.
In April alone, the export value of pangasius to Brazil increased by 687%, to Thailand by 47% over the same period last year. Accumulated in the first 4 months of 2021, the total value of pangasius exports to Brazil reached 22.3 million USD, Thailand reached 21.2 million USD, up 38.7% and 8.5% respectively over the same period last year before.
In the context of the Covid-19 epidemic, many seafood enterprises have changed their trading methods with partners. Instead of selling at the CIF price for delivery to the port of import, the enterprise switched to signing a contract to sell the goods at the FOB price and deliver the goods at the port of Vietnam.
The current problem is that raw materials for processing plants are at risk of shortage because the farming cycle lasts from 7-8 months and production cannot increase rapidly. However, the pangasius industry has more than 60% of raw materials actively raised by enterprises, so they have their contingency plan when the market recovers.
- Container freight rates are at a record high
The aggregate price index of eight major shipping routes in the world has increased by nearly 300% over the same period last year, putting importers and exporters in a difficult situation.
This year, many shippers have been charged more than $10,000 per container in the US and elsewhere. It is known that when signing contracts with sea carriers, importers and exporters of goods must accept high additional fees to ensure timely delivery and unloading.
After a period of decline due to the pandemic in 2020, global consumer demand increased sharply again and companies began to promote hoarding of goods, leading to a boiling point in sea freight activities.
In addition, disruptions from the blockage of the Suez Canal at the end of March and congestion at seaports are believed to be the main reasons why the demand for shipping containers outstrips supply, pushing up freight rates increased sharply.
(Source: https://vnoutsourcing.com/en/news/news-events/container-freight-rates-are-at-a-record-high-117.html; http://seafood.vasep.com.vn/)
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