As one of Vietnam's two main seafood export markets, the Chinese market is showing many good signs, opening up opportunities for seafood to increase market share.

Main market

According to Ms. Le Hang, Communications Director of the Vietnam Association of Seafood Exporters and Producers (VASEP), in September, a number of key seafood products regained balance compared to the same period last year. In particular, shrimp and tuna exports in September both reached levels equivalent to September 2022. Notably, the recovery of pangasius products with a positive growth rate of 9% compared to the same period last year.

For shrimp products, export results in recent months have shown signs of recovery compared to previous months. The two main markets, the US and China have begun to increase demand, and exports to these two powers have both recorded positive growth in the past 2 months.

By the end of September 2023, exports to the top 3 largest markets, the US, China, and Japan, all exceeded USD 1 billion. In particular, the China - Hong Kong market brought Vietnamese seafood in foreign currency with USD 1.15 billion in the first 3 quarters of the year, down 15% compared to the same period in 2022.

In September alone, seafood exports to China recovered, increasing from 4-17% over the same period last year.

Pangasius exports tend to gradually recover in markets, including China. In September 2023, exports to some markets regained balance or reached higher levels compared to the same period in 2022.

As of September 15, 2023, China bought USD 381 million of Vietnamese pangasius, down 29% over the same period last year. Hong Kong alone imported USD 25 million of pangasius, down 15% over the same period in 2022.

Despite reducing imports, China is still the leading single importer of Vietnamese pangasius consumption. In the eight months of 2023 alone, this market consumed 170,874 tons of pangasius from Vietnam. The average price of pangasius exports to this market is always maintained below USD 2.5/kg. In 2022, pangasius export turnover to China - Hong Kong will reach more than USD 700 million, an increase of 58% over the same period in 2021.

According to Ms. Kim Thu, shrimp market expert of VASEP, currently, lobster consumption is mainly exported to the Chinese market through unofficial channels; Vietnamese businesses are looking for ways to officially export this product. According to data from China Customs, in the first 7 months of 2023, China's lobster imports reached 32,358 tons, worth over USD 962 million, an increase of 19% in volume and 1% in value over the same period last year

Notably, on April 27, 2022, Thanh Nhon Seafood and General Trading Company Limited (Ho Chi Minh City) signed a contract to officially export live lobster to Kunming City (China) with a quantity of 2,000 tons, implemented until April 2023. This is the largest official lobster export contract ever for a domestic enterprise.

Promote trade promotion

In August 2023, economic data showed that China's economy had a clear improvement. In the third quarter of 2023, growth in the market will reach an even higher speed when the world's second-largest economy enters the peak of the trading season. Although still facing many risks and challenges, in the context of a global economic recession, combined with the impact of the Russia-Ukraine conflict, the Chinese economy still stands strongly and tends to recover. Demand for tourism, hotels, and restaurants is recovering and growing. It is expected that the general recovery of the economy, especially the service industry, will partly bring Vietnam's pangasius export turnover to this market to gradually return to the race.

In order to further promote the export of agricultural products, especially seafood and vegetables to the Chinese market and implement the National Trade Promotion Program to support businesses in maintaining export activities, Participating in official distribution channels in China, in early November 2023, the Ministry of Agriculture and Rural Development coordinated with the Vietnamese Embassy in Shanghai, trade representative agencies and other agencies. Relevant agencies organize trade delegations to promote fruit and seafood supply chains that meet regulations for official export to the Chinese market.

The goal of the trade trip is to help Vietnamese businesses find importers of agricultural products, especially vegetables, fruits, and seafood in the Chinese market to increase exports; support trade connections, aiming to introduce Vietnamese seafood and vegetable products that meet current market requirements (GAP, traceability, quality standards, packaging, labels...), Vietnam's products with export advantages reach China's distribution systems and large import corporations.

At the same time, businesses conduct a survey of distribution channels and work with associations and key import and distribution businesses in the Shanghai area to increase exports in the last months of 2023.

In addition, to ensure convenience in officially exporting lobster to China, it is urgent to create links in the production, purchasing, and export of lobster associated with traceability.

To successfully build these linked models, the fisheries industry will focus on supporting relevant parties participating in the chain to access support policies; guide the transfer of scientific and technological advances in aquaculture; implement the planning of concentrated aquaculture areas to develop raw material areas; create favorable conditions for purchasing and exporting units to connect with lobster farmers.

Along with that, businesses must be granted an enterprise code to export to the Chinese market issued by the Department of Quality, Processing, and Market Development - Ministry of Agriculture and Rural Development with a quarantine certificate issued by branches of the Department of Quality, Processing, and Market Development.

Source: Customs News

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