Vietnam’s export sees marginal impacts from China’s Japanese seafood ban
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China’s ban on Japanese seafood due to fear of radioactive contamination has Vietnamese firms seeing opportunities to ship more products, but the gain has been marginal as Chinese demand drops.
On August 24, China imposed a total ban on Japanese seafood products after the latter started discharging its treated radioactive water from the wrecked Fukushima nuclear power plant into its seawater.
Hong Kong and Macau have also announced their own ban, which covers Japanese seafood imports from 10 regions.
The CEO of a Vietnamese seafood exporter from Nha Trang in the central region said that the ban might help increase the export of some products, such as tuna.
“We have seen Chinese buyers increasing their orders for tuna by 15% year-on-year. But demand for shrimp and octopus are still 20% lower year-on-year.”
Some other industry insiders have also said that the ban might offer opportunities for Vietnamese seafood, but only slightly, as Japan is only a small seafood exporter to China.
Japan accounted around 3% of China’s seafood imports last year, against Ecuador’s 18.6%, Russia 14.4%, and Vietnam’s 8.8%.
Pangasius, one of Vietnam’s main seafood exports, has not seen any notable increase in China shipments amid low demand, according to a report by SSI Research.
“Pangasius exports to China rose slightly last week but was not significant and irrelevant to the ban,” the report said.
The Vietnamese seafood industry has been facing a tough year as demand from major markets such as the U.S., the E.U. and China all plunged amid rising inflation and economic challenges.
Exports of pangasius to China dropped 32% year-on-year to $325 million, and shrimp fell 9% to $338 million, according to Vietnam Association of Seafood Exporters and Producers (VASEP).
VASEP general secretary Truong Dinh Hoe said that Vietnamese exporters will not benefit significantly from the ban.
Questions & Answers
Q.Which specific Vietnamese seafood products have seen an increase in Chinese orders since the ban?
Which specific Vietnamese seafood products have seen an increase in Chinese orders since the ban?
A Vietnamese seafood exporter noted that Chinese buyers increased their orders for tuna by 15% year-on-year. However, demand for other products like shrimp and octopus is still lower, and pangasius exports have not notably increased.
Q.What is the primary reason why Vietnamese firms are only seeing marginal benefits from China's ban on Japanese seafood?
What is the primary reason why Vietnamese firms are only seeing marginal benefits from China's ban on Japanese seafood?
The main reason is a general drop in Chinese demand for seafood. Also, Japan was only a small seafood exporter to China, accounting for about 3% of imports last year, limiting the scope for replacement.
Q.Which other regions have imposed similar bans on Japanese seafood following China's decision?
Which other regions have imposed similar bans on Japanese seafood following China's decision?
Following China's ban, Hong Kong and Macau also announced their own bans on Japanese seafood imports. These bans specifically cover products from 10 regions in Japan.
Q.How much has Vietnam's seafood export to China for key products like pangasius and shrimp declined this year?
How much has Vietnam's seafood export to China for key products like pangasius and shrimp declined this year?
Exports of pangasius to China dropped 32% year-on-year, amounting to $325 million. Shrimp exports to China also fell by 9%, reaching $338 million, reflecting a tough year for the industry.
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