Can Vietnam's shrimp industry take advantage of the warming US market to break through international trade barriers?

The story behind the import data 

In the first half of this year, the United States imported 297,928 tons of shrimp, valued at about $2.3 billion, a slight decrease of 1% in quantity and 8% in value compared with the same period last year.  This data may seem bland, but it is actually undercurrent.  In May, in particular, US shrimp imports reached 63,973 tons, up 3% month-on-month, although the value was still down 7% due to price factors, but the increase in volume undoubtedly injected a boost to the market.  The continued decline in prices, from $3.92 to $3.59 a pound, reflects intense competition in the market and dynamic adjustments in international supply chains. 

Market trends and influencing factors 

The fluctuation of shrimp import market in the United States is influenced by multiple factors.  First of all, the uncertainty of international trade policy, especially the United States Department of Commerce of India, Ecuador, Vietnam and Indonesia, such as major shrimp suppliers of countervailing duties and anti-dumping duties investigation, a direct impact on the export strategy and market access conditions of these countries.  The preliminary findings of the investigation, which required exporters to pay a deposit, further exacerbated the market tension. 

Opportunities and Challenges of Shrimp Industry in Vietnam 

In this market change, Vietnam shrimp industry is facing unprecedented opportunities and challenges.  On the one hand, the U.S. Department of Commerce warned about antibiotics and labor issues in Indian and Ecuadorian shrimp, providing market space for Vietnamese shrimp.  On the other hand, whether Vietnamese shrimp can seize this opportunity depends on whether it can effectively solve the technical barriers and trade frictions in the export process. 

It is worth mentioning that the export prospects of Vietnamese shrimp industry are also affected by the recognition of Vietnam's market economy status by the United States.  If Vietnam is promoted to a market economy, it will help it obtain fairer trade treatment in the US market, thus further promoting shrimp exports. 

Looking ahead, demand for American prawn is expected to see a modest increase in the third quarter, driven mainly by increased holiday consumer demand and stronger willingness of importers to buy.  At the same time, as the U.S. economy continues to recover and inflation cools gradually, the Federal Reserve may cut interest rates in September this year, which will further stimulate consumption and investment, bringing more benefits to the shrimp market.