[NEWS] - Elevating the value chain to increase the competitiveness of Vietnamese shrimp

Accounting for about 14% of total shrimp export value worldwide, however, the Vietnamese shrimp value chain is not optimal, so it is also necessary to focus on this work to increase competitiveness.

Shrimp is a key export item, playing an important role in the development of Vietnam’s seafood industry and economy, helping to create jobs for millions of workers. From 2010 to 2022, the proportion of shrimp export value is always high, from 36.8 - 50.4% of the total seafood export turnover.

Entering 2023, our country’s shrimp industry has set a target that the land area must reach 750,000 hectares, the output of all kinds of shrimp must be more than 1 million tons, and the export turnover of over $4.3 billion, an increase of about 11.2%. compared to the same period in 2021.

Over the years, Vietnam’s shrimp industry has continuously achieved good growth in terms of area, output as well as production value. However, this industry still faces the risk of unsustainable development because of limited production efficiency, leading to low income of shrimp farmers, division of profits, and responsibilities in the price chain shrimp treatment as well as inadequacies.

Along with that, our country’s shrimp industry is also facing challenges due to climate change, environment, and disease. International integration also brings many opportunities but also poses many challenges to compete, especially requiring products not only to achieve quality and safety but also to have competitive prices.

At the opening ceremony of the fourth Vietnam International Shrimp Industry Expo 2023 (referred to as VietShrimp 2023) taking place on the morning of April 12, 2023, Mr. Nguyen Viet Thang - Chairman of the Fisheries Association Vietnam - Head of the Organizing Committee of VietShrimp 2023 also emphasized that the shrimp industry has played an important role in Vietnam’s seafood exports to the world during the past two decades. Every year, the shrimp industry contributes 45-50% of the total seafood export value. With continuous efforts, Vietnam has gradually become a leading shrimp supplier and the export value also accounts for 13-14% of the total shrimp export value in the world.

In recent years, Vietnam’s shrimp industry has also had many innovations and developments, especially more households and businesses have increased the application of new technologies to shrimp farming to improve production efficiency and adapt to climate change. However, the production efficiency and competitiveness of Vietnamese shrimp products are still limited and the industry still faces many difficulties. For Vietnamese shrimp to compete with the market, it is necessary to raise the value chain.

Accordingly, the sustainable development of the shrimp value chain is essential. To do this also needs the active participation of stakeholders in the shrimp industry chain to reduce production costs and improve the quality and competitiveness of Vietnamese shrimp.

With the theme "Enhancing the value chain, VietShrimp 2023 is organized with the desire to become a "bridge" of 4 houses: Managers - scientists - entrepreneurs - farmers, joining hands to contribute to the action, realize the goal of sustainable development for Vietnamese shrimp," said Mr. Nguyen Viet Thang.

As the largest and most comprehensive Expo for the shrimp industry in Vietnam in particular, as well as in Asia and Southeast Asia in general, VietShrimp 2023 with a scale of 200 booths to 150 enterprises, domestic and international organizations, operating in the fields related to the fishery industry in general and shrimp in particular, from seed, preparations, feed, vaccines, drugs, processes, technology...; attracted more than 15,000 visitors. Besides, thematic seminars with the participation and sharing of useful information of managers, experts, scientists, and businesses.

According to the Directorate of Fisheries (under the Ministry of Agriculture and Rural Development), currently Vietnam shrimp has been exported to 108 markets; the export to 9 main markets including the US, EU, Japan, China, and Korea... accounted for more than 97% of the total value.

However, export activities are ranked at the top of the world, Vietnam’s shrimp industry is still facing many difficulties and challenges in both input and output related to the supply of raw materials (quality and quantity). fingerlings, control of farming areas, control of diseases, the ratio of area and production of shrimp raised according to GAP certified standards, organic... are still low).

More specifically, the production cost of baby shrimp is higher than that of other countries, leading to a less competitive product price while Vietnamese shrimp are under intense competitive pressure with Ecuador and India in the global trade market. The value chain of Vietnamese shrimp sources has not achieved optimal efficiency. This is clearly shown when entering the beginning of 2023, accumulating in the first 3 months of 2023, shrimp exports reached 577 million USD, down about 40% compared to the same period in 2022.

Director General of the General Department of Fisheries - Mr. Tran Dinh Luan said that in 2023, although it is forecasted that it will continue to face many difficulties, the shrimp industry in the whole country still sets a goal to maintain production and export turnover export. To overcome the challenges and achieve the set goals, it is necessary to have the active participation of all stakeholders in the shrimp value chain to reduce production costs and improve the quality and competitiveness of shrimp in Vietnam.

“VietShrimp Expo in 2023 was held with the presence of more and more booths introducing new products, innovations, and technologies; is a place where shrimp farmers have the opportunity to share experiences, learn, and dialogue with management agencies, experts, scientists, and businesses, which will be an important event for the community. Vietnamese shrimp farmers together make efforts to overcome difficulties and overcome weaknesses to raise the heart of the Vietnamese shrimp value chain," shared Mr. Tran Dinh Luan.

Through the above information, we can grasp the situation of advantages as well as difficulties in increasing the value and increasing competitiveness of Vietnamese shrimp. This is also a great opportunity for businesses or Vietnamese shrimp farming units that have more hope for the shrimp farming industry. Indochina Holding operates in the fields of investment and trade promotion. As a commercial bridge between the Vietnamese business community and developed enterprises in the world, we will accompany and bring the products of small and medium enterprises to export successfully.

Hoang Yen (Collection source)