China surpasses US as Vietnam’s top shrimp export market in H1

China imported nearly US$595 million worth of shrimp, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

A domestic supply shortage in China coupled with heightened summer demand for premium products like lobster has opened up opportunities for Vietnamese exporters.

Geographic proximity and competitive pricing have been further factors.

Traditional markets such as Japan, South Korea and the E.U. maintained steady growth.

Japan, the third largest, saw robust demand for deeply processed, ready-to-eat shrimp products.

A lobster for sale in Ho Chi Minh City. Photo by VnExpress/Quynh Tran

Exports to Europe benefited from the E.U.-Vietnam Free Trade Agreement, which gives Vietnam a competitive edge over Southeast Asian rivals like Indonesia and Thailand.

But the U.S., previously the top market for Vietnamese shrimp, showed signs of decline.

While exports to the country rose 13% to $341 million in the first half, much of this stemmed from a surge in May when businesses rushed to take deliveries before President Donald Trump’s new import tariffs took effect.

In June they plummeted by 37%.

Since April the Trump regime has had a 10% retaliatory tariff on various imports from most countries. The tariff on shrimp will increase to 20% from August 1.

Vietnamese businesses also face looming risks from preliminary anti-dumping duties of over 35% and countervailing duties expected by year-end.

VASEP said U.S. tax policies have made American importers cautious, complicating pricing, order planning and production for Vietnamese firms.

As a result, many seafood companies are pivoting to alternative markets, with China emerging as a strong option.

Global market shifts have also impacted domestic shrimp prices.

Large black tiger shrimp prices hit the highest this year of VND201,000 (US$7.69) per kilogram, driven by limited supply and steady demand.

Vietnam’s overall shrimp exports in the first six months jumped by 27% to $2 billion.

VASEP forecast a slowdown in exports in July and beyond, following the May-June order rush.

The U.S. tariff delay until early August allowed some firms to expedite shipments, but future prospects hinge on final tariff levels and the ability to diversify markets.

Many shrimp producers are revamping their export strategies to reduce dependence on the U.S. and capitalize on trade agreements like the EVFTA and Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

They also prioritize deeply processed products.

Stricter traceability and origin requirements are also being enforced by major markets like the U.S. and EU.

VASEP said rising input costs and stringent market demands are compelling firms to enhance productivity across the supply chain, from certified farming and disease control to optimized processing and logistics.

Proactive financial and legal strategies to navigate sudden policy shifts would be critical for sustaining growth in a volatile global market, it added.