Vietnam's Seafood Exports Show Strong Growth, But Concerns Linger Over Future Expansion

Vietnam's seafood exports have shown impressive growth in the first half of the year, reaching nearly $6 billion, a 13% increase compared to the same period last year. Shrimp continues to be the main export item, accounting for 40% of the total seafood export value with $2.3 billion, up over 13% year-on-year. Pangasius also contributed significantly, bringing in $1.1 billion, an increase of over 12% compared to the first half of 2025, reflecting stable demand for affordable white fish amidst consumer spending caution globally. This robust export performance is supported by increased demand from key markets, including the United States. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the double-digit growth in the first half of the year reflects the recovery of consumer demand, coupled with Vietnamese businesses' ability to adjust market and product structures and effectively exploit markets with geographical advantages. However, challenges loom for the latter half of the year, with increasing uncertainties. Businesses report that the pressure is shifting from market demand to logistics costs, raw materials, and labor. To achieve the ambitious export target of over $12 billion by 2026, which represents an annual growth of 10-11%, addressing bottlenecks such as labor shortages, sea freight costs, and export raw material certification procedures is crucial. For instance, Phan Van Tam, Deputy General Director of Minh Phu-Khanh An Seafood Processing Co., Ltd. in Ca Mau, highlighted the urgent need for approximately 3,000 general laborers to operate at full capacity, with production lines currently running at a reduced pace due to labor scarcity. International container freight rates are also nearing their highest levels in about two years, significantly eroding the added value for businesses, especially for shipments to the US and the European Union (EU), where surcharges are common. Government reforms, including administrative procedure simplification, reduced business conditions, and digital transformation promotion, aim to cut costs and enhance competitiveness. Customs authorities are actively connecting data with domestic and international partners to reduce compliance costs for businesses while ensuring transparency and effective control against trade fraud. They are also reviewing regulations related to animal and plant quarantine and food safety checks to further streamline procedures and reduce time and costs for businesses. Experts suggest that instead of focusing solely on increasing output, the seafood sector should enhance added value through deep processing and by-product utilization, adopting a circular economy model. Strategies like "global raw material aggregation" are considered a breakthrough, leveraging Vietnam's world-class processing capabilities to import quality raw materials for deep processing and export, thereby accelerating capital turnover and optimizing factory capacity. If these bottlenecks are addressed promptly, Vietnam's seafood industry is poised to transition to a phase of high-quality development based on added value, technological innovation, and sustainability, marking a historic milestone in export value by 2026.