Japan Seafood insights

Core tip: Recently, Japan's Mitsubishi Corporation announced that it will increase its stake in Thai seafood giant Thai Union by 13.81%, with a total amount of approximately 2.5 billion U.S. dollars (approximately 66.5 billion Thai baht). After the transaction is completed, Mitsubishi's shareholding in Thai Union will rise to 20%, making it one of its most significant overseas strategic shareholders.

In the first half of the year, Vietnam's total shrimp export revenue exceeded 2 billion USD, a 27% increase compared to the same period last year. Vietnam's shrimp exports to Australia and Canada increased by 5% and 6%, respectively, while exports to Japan increased by 19%, making Japan Vietnam's third-largest shrimp product buyer. The sustained demand for deep-processed shrimp resulted in a steady 14% growth in Vietnam's shrimp exports to South Korea. Vietnam's shrimp exports to the European Union increased by 16%, with double-digit growth in Germany, Belgium, and France, thanks to tariff benefits under the EU-Vietnam Free Trade Agreement (EVFTA). Although Vietnam's shrimp exports to the U.S. increased by 13% in the first half of the year, reaching 341 million USD, the monthly trend was uneven. Due to various export companies shipping before the new tariffs, exports to the U.S. surged by 66% in May, while they dropped sharply by 37% in June. Shrimp shipments to the U.S. are expected to slow down in July as many "tax-avoidance" orders have been completed earlier than usual. The Vietnam Association of Seafood Exporters and Producers (VASEP) believes that in the face of ongoing global uncertainties, Vietnamese shrimp exporters must actively adjust their strategies, diversify their markets, reduce their dependence on the U.S., and take advantage of trade agreements such as the EVFTA and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). At the same time, companies must be financially and legally prepared to respond flexibly to unexpected changes in the tax policies of major export countries.

Core Insight: Renowned Japanese seafood company Kiyomura Corporation has recently expressed strong interest in investing in the fisheries sector of Papua New Guinea (PNG), prompting a positive response from the local National Fisheries Authority (NFA). Led by Kiyoshi Kimura, known as the "King of Tuna," Kiyomura Corporation operates high-end sushi restaurants across Japan and is famous for its high-priced auctions of bluefin tuna at the Tokyo fish market.