OVERVIEW ON VIETNAM SHRIMP INDUSTRY

Shrimp production and exports

Over the past five years (2016 – 2021), Vietnamese shrimp industry has thrived thanks to improved production and productivity of farmed shrimp. In the past 5 years, Vietnam's shrimp farming area increased by an average of 1.5% per year, while production increased by an average of 10%, mainly due to improved productivity of whiteleg shrimp farming.

- Whiteleg shrimp production increased continuously and increased dramatically by 61% after 5 years with an annual average increase of 13%.

- Meanwhile, the production of black tiger shrimp increased by an average of 0.8% and only increased by 1.5% after 5 years, the productivity did not see a significant growth like whiteleg shrimp.

In recent years, shrimp has increasingly accounted for a larger proportion of Vietnam's total seafood export turnover. In 2020 and 2021, shrimp accounted for 44% of seafood exports with over 3.7 billion USD and 3.9 billion USD, respectively.

Vietnam shrimp exports increased by 18.5% with an average annual growth of 5% in last 5 years. The year-on-year growth rate is not stable, accordingly, it increased the most in 2017 with an increase of 22.3% to over US$ 3.8 billion, mainly thanks to a sharp increase in whiteleg shrimp exports by 29%.

After 5 years, Vietnam whiteleg shrimp exports increasingly dominate in exported shrimp products thanks to strong growth with average annual increase of nearly 9%. After 5 years, vannamei exports have increased by more than 1 billion USD, from nearly 2 billion USD to nearly 3 billion USD in 2021. Meanwhile, black tiger shrimp tends to decrease from 931 million USD to 620 million USD.

Frozen shrimp products account for a large proportion (about 60%) of Vietnam's total shrimp exports. Processed shrimp accounts for 40% and usually only accounts for a significant proportion in some major markets such as the US, the EU, Japan.

Over the years, the top 5 largest markets for Vietnamese shrimp consumption has always included the US, Japan, EU, China, and South Korea, accounting for 80-85% of Vietnam's shrimp export value.

Quality and food safety assurance

Because shrimp enterprises that are VASEP’s members contributing around 90% of shrimp exports from Vietnam, therefore VASEP through its Shrimp Committee has  collaborated with the Ministry of Agriculture and Rural Development (MARD), the NAFIQAD which belongs to MARD to solve the industry obstacles and problems including quality assurance, safety hygiene and the compliance with rules, regulations of Vietnam law and foreign markets.

Thanks to the collaboration between Ministry of Agriculture and Rural Development (MARD), the National Agro-Forestry-Fisheries Quality Assurance Department (NAFIQAD) which belongs to MARD and Vietnam Association of Seafood Exporters and Producers (VASEP) in assurance of quality, safety hygiene and the compliance with rules, regulations of Vietnam law and foreign markets and the advanced certifications and compliance of  Law of Labor, Law of Food Safety and the regulations of Ministry of Agriculture and Rural Development, shrimp companies are implementing good practices in both farms and processing plants including shrimp products. Beside, every year, the companies must be inspected by  the  independent audit agencies, international certification bodies and Vietnam authorities. 

To maintain 100 importing markets and develop the new market places, Vietnam shrimp companies must keep their reputation by the control the whole system  to meet the higher and higher requirements and regulations from the world market. Some examples include:

- For labor issue: working hours for employees in Vietnam shrimp companies have been applied in accordance with Labor Code 2012, Decree 45/2013/NĐ-CP dated 10/05/2013 by the Government.

- Labor Union at shrimp enterprises: the Law regulates that every  shrimp companies must declare and register Working Regulations with the local Labor Department, Invalids and Social Affairs in order to  protect interest of workers including working hours and working conditions…

- Getting ASC, Global GAP and other international standards shows that Vietnam shrimp farmers and processors are not allowed to use antibiotics and unnecessary chemicals in their production chain. Most importantly, Vietnamese authorities now have regulations and programs that strictly control the use of chemicals and antibiotics in aquaculture and seafood processing. Directorate of Fisheries (D-Fish) and local fisheries authorities regularly guide and inspect the use of antibiotics and develop the shrimp industry in the direction of chain linkage (with strict contractual , controlled production. , not using or restricting the use of antibiotics, stable consumption of products ...), certified shrimp farming.

- Vietnam has been implementing the National Residue monitoring Program (according to Circular No. 31/2015/TT-BNNPTNT dated October 06th, 2015), implemented by NAFIQAD and every year send annual report on results of previous year and plan for the next year to the EU.

- For seafood processors and exporters: they have been carrying out the program of internal monitoring and prevention of antibiotic residues in products (mandated according to Circular No. 48/ /2013/TT-BNNPTNT): Collect samples to test antibiotic residues and toxic substances at the farm before harvest; Take samples to test antibiotic residue to control when receiving raw materials before processing.

- Before exporting, the competent authorities of Vietnam (NAFIQAD) take the sample from the consignment to test antibiotic residue before issuing the health certificates which is legally required by all European border inspection authorities for all imports of shrimp and all food coming from Vietnam to European markets.