Photo: VASEP/FIS

Australia Emerges as Strategic 'Shock Absorber' for Vietnamese Shrimp Amidst US Tariff Risks

VIET NAM
Wednesday, June 18, 2025, 00:10 (GMT + 9)

With steady export growth and strong trade agreements, Australia offers a stable, high-value market for Vietnam's deeply processed shrimp products, vital for diversification.

HANOI – As the Vietnamese shrimp industry navigates the increasing risk of reciprocal tariffs from the United States, diversifying export markets has become an urgent priority. In this context, Australia is emerging as a critical, stable, and highly potential market, perfectly suited for Vietnam's strategy of deep processing and increasing the added value of its shrimp exports. This insight comes from Ms. Kim Thu, Shrimp Market Expert at the Vietnam Association of Seafood Exporters and Producers (VASEP).

Australia currently stands as Vietnam's fifth-largest single market for shrimp, accounting for approximately 7% of total export value. In the first four months of 2025 alone, shrimp exports to Australia reached nearly $77 million, marking an 8% increase over the same period last year. This builds on consistent growth from $127 million in 2019 to over $240 million in 2024. Whiteleg shrimp dominates these exports, with value-added processed products, such as dumplings, skewers, and steamed shrimp, comprising a significant 40% of the total turnover, indicating strong consumer preference.

Leveraging FTAs and Strategic Partnerships

Vietnam and Australia share memberships in key trade agreements including the CPTPP, RCEP, and AANZFTA. These Free Trade Agreements are instrumental not only in reducing tariffs but also in facilitating trade through harmonized standards, simplified customs procedures, and enhanced transparency. Further bolstering this relationship, the two countries upgraded their ties to a Comprehensive Strategic Partnership in March 2024. This political advancement is expected to deepen trust and expand cooperation in vital sectors like fisheries and agriculture.

Opportunities for High-Value Shrimp

Despite Australia's population of around 25.7 million, it represents a lucrative consumer market. Australians are willing to pay higher prices for quality, convenient, and traceable food. There's a particular preference for easy-to-prepare yet nutritious options, especially among younger demographics and high-income consumers in major cities like Sydney and Melbourne—a significant advantage for Vietnam's strong segment of ready-to-cook and ready-to-eat shrimp products. The substantial Vietnamese community in Australia, approximately 300,000 strong, also acts as a "natural promotional force" for Vietnamese processed shrimp. Additionally, processed seafood consumption has consistently grown by 6-8% annually, driven by trends in flexible vegetarianism and healthy eating.

Vietnam's competitive edge in the Australian market lies in its quality stability, product diversity, and advanced deep-processing capabilities. Major enterprises like Minh Phu, Sao Ta, and Stapimex have heavily invested in technology, enabling Vietnamese processed shrimp to maintain international market share despite price pressures from competitors such as Thailand, Indonesia, and India.

While Australia has its own shrimp production, the strong consumer demand for high-quality, convenient, and value-added seafood products in the Australian market creates a significant opportunity for imported Vietnamese shrimp, particularly those with excellent presentation and advanced processing -->

Navigating Challenges and Future Outlook

Despite these advantages, challenges persist. Australia's stringent quarantine regulations demand that imported shrimp meet not only antibiotic and microbiological standards but also be virus-free. High logistics costs and shipping times of 14–18 days also pose hurdles, though some businesses are exploring cold chain logistics via Singapore or Darwin to optimize.

To further boost exports, the Vietnamese business community recommends increasing in-depth trade promotion, especially in key states like New South Wales and Victoria, and investing in cold logistics. They also propose that Australia consider easing technical and administrative procedures for whole and semi-processed Vietnamese shrimp and collaborate on research into shrimp breeds and green processing technology. Enterprises are encouraged to focus on deep processing, develop private labels for Australian supermarket chains, and pursue international certifications like ASC and BAP to enhance competitiveness.

Popular shrimp products in the Australian market

With its stable market, transparent legal system, and robust demand for processed shrimp, Australia can indeed act as a crucial "trade cushion" for Vietnamese shrimp exports, minimizing risks in the long term. This aligns with the message of "Proactive adaptation – Innovation – Sustainable development" conveyed at the 7th VASEP General Assembly (2025-2030) on June 12. Expectations are high that shrimp exports to markets including Australia will continue strong growth, contributing significantly to Vietnam's ambitious target of $14-16 billion in seafood export turnover by 2030.

editorial@seafood.media
www.seafood.media

Print