Vietnam Surpasses Canada as Top Lobster Supplier to China Amid Tariffs
China’s lobster import market experienced a significant shift, with Vietnam emerging as the leading supplier, surpassing Canada. This change is largely attributed to a imposition of a 25% tariff by China on Canadian seafood, including lobster, impacting trade dynamics and creating opportunities for alternative suppliers.
Vietnam’s Rise in the Chinese Lobster Market
According to data from China’s General Administration of Customs, China’s total lobster imports in reached approximately 70,000 tons, a rise of around 10,000 tons compared to . However, the composition of these imports underwent a dramatic transformation.
In , Canada held the top position, supplying around 27,000 tons, representing approximately 44% of China’s total lobster imports. Vietnam followed as the second-largest supplier, contributing around 11,000 tons, or roughly 18% of the market share.
By , the tables had turned. Vietnam overtook Canada, exporting over 24,000 tons of lobster to China, capturing approximately 34.5% of the market. Canada’s exports, conversely, declined to just over 15,000 tons, accounting for around 22% of the total. The United States maintained a presence, exporting nearly 10,000 tons (approximately 14%), while Australia saw a substantial increase in exports, reaching close to 7,000 tons (around 10%).
The Vietnam Association of Seafood Exporters and Producers (VASEP) attributes this shift directly to China’s tariff policy on Canadian seafood. The 25% tariff, implemented on , significantly disadvantaged Canadian exporters.
Faced with this trade barrier, Chinese importers sought alternative sources that could offer both competitive pricing and reliable delivery. Vietnam, benefiting from its geographical proximity to China, rapid delivery times and flexibility in shipment sizes, emerged as a prime alternative, particularly suited for the live and fresh seafood segment.
Economic Impact and Growth
proved to be a breakthrough year for Vietnamese lobster exports to China. The total export value of Vietnamese shrimp and lobster products to China and Hong Kong reached $1.3 billion, a 55% increase compared to . Green lobsters were the primary driver of this growth, contributing $840 million to the total figure – a staggering 131% increase year-on-year.
This momentum continued into early . In January alone, Vietnamese green lobster exports to mainland China and Hong Kong exceeded $100 million, representing a 6% increase compared to the same period in the previous year.
Future Outlook and Challenges
However, the market landscape is poised for another shift. China lifted the 25% tariff on Canadian lobsters and crabs, effective , following a bilateral agreement. This development is expected to reintroduce Canada as a strong competitor in the Chinese lobster market.
Canada is expected to focus on regaining market share in the high-end restaurant and gift sectors, while Australia is also anticipated to strengthen its position following the resumption of trade.
VASEP emphasizes that Vietnamese companies must prioritize maintaining product quality, adhering to standardized specifications, optimizing logistics for fresh seafood, and establishing direct connections with modern distribution networks to sustain their growth trajectory. The evolving trade policies create a more diversified consumer landscape in China, requiring Vietnamese exporters to adapt and refine their strategies.
“ demonstrated China’s readiness to purchase lobster in large quantities as demand from the premium market recovered,” VASEP commented. “However, will be a test of resilience. Companies with the ability to maintain quality, ensure timely delivery, and preserve distribution channels will be able to retain their market share as Canada returns to the market and competition intensifies in the premium segment.”