Vietnam seafood exporters face risks from market concentration

Vietnamese seafood exporters are facing risks due to heavy reliance on specific major markets, a strategy often described as “putting all eggs in one basket.” While focusing on key markets can optimize logistics and production, sudden shifts in consumer demand or regulatory changes can cause significant losses.

In Khanh Hoa province, lobster farmers experienced this vulnerability in 2024. Approximately 80–90% of the lobster output in Song Cau was exported to China. However, a shift in Chinese market preference toward smaller lobsters (under 0.3 kg) left larger lobsters, typically weighing 0.5–0.7 kg, difficult to sell. This mismatch caused prices to drop from 1 million VND/kg to 600,000 VND/kg, threatening farmers with substantial financial losses.

A similar issue occurred with spiny lobsters in 2023, when China accounted for nearly 99% of Vietnam's exports before new import requirements regarding origin management and wildlife protection disrupted the trade.