Official data from the Vietnamese government shows that due to the early decisive actions of the Vietnamese government, Vietnam has not seen any new coronavirus cases for more than 50 consecutive days. As of June 5, Vietnam has more than 300 confirmed cases and the death toll is zero. During the social distancing order implemented in early April, almost all restrictions have been lifted, and since late April, major economic and social activities have returned to the "new normal".
Meanwhile, the number of cases in other major shrimp producers is much higher, where breeding and processing activities are severely disturbed. According to data from Johns Hopkins University, as of June 5, there were more than 227,000 confirmed cases of coronavirus in India, nearly 41,000 in Ecuador, about 29,000 in Indonesia, and 3,100 in Thailand.
These are the major major shrimp producers in the world, but they are being affected by the epidemic.
Vietnamese shrimp companies and farmers have been doing well recently despite facing headwinds due to disruptions in major export markets in the first few months after the outbreak. According to the Association of Vietnam Seafood Exporters and Producers (VASEP), Vietnam exported $244.2 million (€216.7 million) worth of shrimp in April, an increase of 5.8% from a year ago. Shrimp exports rose 2.9% year-on-year to US$872.8 million (€774.7 million).
In April this year, Vietnam's largest shrimp sales to Japan increased by 19% year-on-year to US$48.6 million (43 million euros), up 11% in the first four months of this year to US$180.5 million (160 million euros).
In April, Vietnam's exports to the United States increased by 14% year-on-year to US$43.2 million (38.3 million euros). The stable demand for Vietnamese shrimp was generated as the number of imports from India and Ecuador declined, both countries fighting the COVID-19 epidemic.
VASEP predicts that Vietnam is expected to receive more shrimp orders from foreign customers as Vietnam's main competitors India, Ecuador, Indonesia and Thailand are still responding to the COVID-19 crisis.
In the case of a surge in exports, some shrimp companies have announced good operating results.
Fimex (Sao-Ta) increased production and exports in May compared to April, while Minh Phu seafood, Vietnam's largest shrimp exporter, hopes that its net profit will increase significantly in the second quarter as the company's raw materials are self-sufficient.
Camimex Group's exports in April were US$6.53 (€580 million), an increase of 186% from April 2019. Of its total shipments, 70% are shipped to the EU and the rest are shipped to South Korea, Canada and Japan. Camimex expects its sales value from May to June will remain between US$7 million and US$8 million (6.2 million to 7 million euros) per month under signed contracts.
Fimex Chairman Ho Quoc Luc said in a statement at the end of May that raw material prices have been on an upward trend this month due to increased exports. For example, the price of 70 shrimp per kilogram is 105,000 VND (USD 4.50, 4.00 euros), bringing farmers a profit of about 35,000 VND (USD 1.5, 1.3 euros) per kilogram.
Vietnamese shrimp prices may remain "good prices" early in the third quarter, as inventory in major markets such as Japan, the United States and the European Union is not as high as in previous months. Meanwhile, Vietnam is well positioned to promote production and exports, while most of its competitors in the world are fighting the COVID-19 crisis. In India, the prolonged fishing ban in April and May caused severe disruption in the shrimp supply chain, with new shrimp species at low levels. The pandemic has also caused labor shortages in processing plants in Ecuador and has caused other supply problems to Indonesia and Thailand.
According to data from the Ministry of Agriculture and Rural Development of Vietnam, as of April 30, the total area of shrimp farming in the country (mainly located in the Mekong Delta) was 481534 hectares of , but 25250 hectares of which were affected by the disease.
