CANADA IS VIETNAM’S 7TH LARGEST SHRIMP IMPORTER
Canada is Vietnam’s 7th largest shrimp importer, accounting for 4.8% of the total shrimp export value of Vietnam, according to the Vietnam Association of Seafood Exporters and Producers.
In the first eight months of 2020, Vietnam shrimp exports to Canada reached US$110.6 million, up nearly 27% over the same period in 2019. In the first 8 months of this year (except January), Vietnam shrimp exports to Canada continuously recorded double-digit growth in the remaining months.
Canada mainly shrimp products from Vietnam such as frozen PTO fresh black tiger shrimp; frozen HLSO EZP fresh whiteleg shrimp; frozen whiteleg shrimp (peeled, head off, tail on); frozen fresh Nobashi headless prawns; Fresh black tiger shrimp (head off, shell on, tail on); frozen HLSO headless fresh prawn, frozen whole black tiger shrimp; frozen prawns head on; frozen breaded whiteleg shrimp; frozen whiteleg shrimp (head off, tail on, marinated); Frozen steamed whiteleg shrimp PTO.
In terms of geographic location, Canada is adjacent to the US. The country has a high income per capita. Moreover, Canada is enjoying tax incentives from CPTPP, so there are many opportunities for Vietnamese shrimp exports to this market.
According to the International Trade Center (ITC), Canada ranked 13th in shrimp imports in the world, accounting for about 2% of the total world shrimp import value. In the first six months of 2020, Canada’s shrimp imports reached nearly US$ 213 million, up 0.5% year on year.
Vietnam is the largest shrimp supplier to Canada, accounting for 34% of Canada’s total shrimp imports. From 2014 up to now, Vietnam has maintained its leading position in supplying shrimp to Canada. India ranks second in supplying shrimp to Canada, accounting for 28%. It is followed by China, Thailand, and Indonesia representing 13%, 7%, and 4% respectively. In the Canadian market, the shares of Vietnam and India have been increasing while the shares of Thailand has been decreasing.
According to ITC data, in the first 6 months of 2020, among the top 5 main suppliers, shrimp imports into Canada from Vietnam and India increased while imports from China, Thailand and Indonesia shrunk. In which, shrimp imports from Vietnam jumped the most by nearly 20%, reaching US$ 73.2 million; Imports from India rose by nearly 3% to nearly US$ 60 million. Shrimp imports from Thailand to Canada recorded the strongest drop of 33% in the first 6 months of 2020.
Frozen raw shrimp (HS 030617) and processed shrimp (HS 160521) are the two most imported products into Canada. In the first 6 months of 2020, shrimp HS code 030617 imported into Canada reached over US$ 152 million, up 5% over the same period in 2019. Shrimp imports HS code 160521 plunged by 13% to over US$ 51 million. Imports of frozen shrimp (HS 030616) into Canada dipped by 20% compared to the same period in 2019.
The Government of Canada requires of diversifying markets, reducing dependence on imports from the US. Vietnam is one of the countries that Canadian businesses are interested in promoting import and export activities. Canada can afford to pay for high-value products. This is an important bridge for Vietnamese businesses to expand their markets to other American countries.
Canada has been consuming more and more warm water shrimp from Southeast Asian countries in the context of the decline in cold water shrimp supplies. According to a recent survey, shrimp accounts for 50% of the total seafood products imported into Canada, and the tendency of households to buy shrimp for home processing has been increasing. In the first months of 2020, Canada was also one of the countries affected by the Covid-19 epidemic with more than 147 thousand cases and more than 8 thousand fatalities. The trend of buying processed shrimp for home-consumption is also quite popular in Canada.