Shrimp exporters look forward to H2 comeback. (Photo: VNA)Hanoi (VNA) - Vietnam’s shrimp industryhas found itself surrounded by difficulties since the beginning of this yeardue to COVID-19 but many exporters are now looking forward to a comeback in thesecond half after the pandemic is brought under control globally.
According to the Vietnam Association of SeafoodExporters and Producers (VASEP), the country’s shrimp exports grew 2.6 percentto 383 million USD in the first two months of this year.
Despite posting a 37.5-percent decline in exports toone of its leading customers - China - which was in a nationwide lockdown,exports to other markets saw significant growth, for example Japan (16.5percent), the US (22.3 percent), and the Republic of Korea (RoK) (12.4percent).
The sector began feeling the pinch from COVID-19 inMarch, however, when the pandemic quickly spread throughout the rest of theworld. Shrimp export value tumbled 15 percent year-on-year during the month to just208 million USD, resulting in Q1 shipments falling 4.3 percent from a yearearlier.
Most of Vietnam’s key markets have been badly hit byCOVID-19, such as the EU and the US, where importers are suffering from shrinkingsales and high inventories.
Authorities across Europe, the US, and the rest ofthe world have forced bars and restaurants to shut down and people to stayhome, hitting seafood orders and causing prices to tumble.
VASEP estimates that about 20-40 percent of ordershave been delayed or cancelled, with new orders being few and far between.
Domestic exporters have made every effort to remain resilientand survive amid the spread of the pandemic. Many have shifted focus to newforeign markets, boosted sales domestically, or created new processed products forsupply to foreign retailers.
Insiders believe that if the pandemic fades by theend of the second quarter then global shrimp demand will likely rebound shortlyafter. They have advised local exporters to retain a certain amount of shrimpin stock so they are ready when orders return.
According to analysis from Rabobank, a fall inorders during the first half of 2020 will likely affect prices in the secondhalf, since there may be large inventories in place.
ꦰ Prices may fall during the current crisis but asteep rise is likely later in the year as supply dries up, assuming the marketreturns to normal, Robobank said./.
