Vietnam’s aquatic product exports will experience only a slight recovery in the first half of this year due to market volatility and a host of challenges to the global economy, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

The sector expects to earn 9.5 billion USD from exports this year, up 3% from 2023 when the value reached 9.2 billion USD or 92% of the yearly target.

 The lower-than-expectation inflation in various country and the persistently high loan interest rates have stymied global economic recovery and, as a result, consumers are not ready to open their purse, the association said.

VASEP Communications Director Le Hang noted that the Russia-Ukraine conflict and other geopolitical issues will continue disrupting  the global trade, including the aquatic product market, resulting in surging transportation and input costs which would cause a new inflation storm, thus affecting demand in 2024, she elaborated.

According to VASEP, with rosy signs in late 2023, exports to some markets like the US, the European Union (EU), and the Republic of Korea (RoK) would bounce back in the first months of this year. Besides, Vietnamese exporters are still seeking ways to expand the markets.

Hang said Vietnamese shrimp will further face competitions from Ecuador and India in terms of price and supply in such markets as the US, China, the EU, and Japan.

Notably, the European Commission (EC)’s “yellow card” warning against Vietnamese seafood remains a challenge to aquatic exports, the association said, stressing that it must be lifted within the year to pave the way for shipments to the EU. 

However, tra fish (pangasius) exports will be a silver lining as inventory in the US, China, and the EU has decreased significantly. Its price, therefore, is expected to increase in the markets.

VASEP forecast that the sector will rake in 4 billion USD from shrimp export and some 1.9 billion USD from tra fish this year.

VNA