Vietnam’s pangasius exports are expected to grow after the second quarter of 2023
In the first quarter of 2023, Vietnam’s pangasius exports brought in $422 million, a decrease of 35% over the same period last year. Global food inflation along with high inventories has caused a fall in demand and import prices, which has negatively affected export sales of Vietnamese pangasius in many major markets.
The two largest markets of this product, China and the US, both reduced imports by 22% and 64%, respectively. After a deep decline in January 2023, pangasius exports to China increased by 26% in February 2023, partly showing a positive signal in this market.
Exports to the US market have not recovered while exports to the EU also had a more positive signal thanks to the German market doubling imports of Vietnamese pangasius. Many other markets also suffered a drop of 12-61%.
Global food inflation along with high inventories has caused a fall in demand and import prices, which has negatively affected export sales of Vietnamese pangasius in many major markets.
In the first quarter of 2023, pangasius exports to the EU market reached 45 million USD, down 4% compared to the same period last year (46.7 million USD). Most markets in the EU increased imports of Vietnamese pangasius, of which many markets recorded double-digit growth, namely Romania (36%), Sweden (53%), Denmark (34%), Bulgaria (49%). Some smaller markets in Europe recorded positive 3-digit growth such as: Germany (100%), Lithuania (429%), Finland (436%).
Besides the EU, Vietnam’s pangasius exports to some other markets in this period also grew positively such as: to Singapore reached US$8.7 million, up 35% over the same period last year, to the UK reached $16.2 million, up 34%. Although the UK has the highest inflation rate compared to other major economies, it is still among the few markets that have recorded positive growth in Vietnam’s pangasius imports.
In the first quarter of 2023, most pangasius enterprises had to deal with negative growth compared to the same period last year. Top 5 largest pangasius exporters including Vinh Hoan, NAVICO, I.D.I Corp, Van Duc Tien Giang, GODACO, accounting for 34.9% of export turnover, all experienced a decrease in sales by 7-43%.
The seafood industry in general, and the pangasius industry in particular, face challenges from the end of 2022 due to prolonged inflation and high inventories
The seafood industry in general, and the pangasius industry in particular, face challenges from the end of 2022 due to prolonged inflation and high inventories. In addition to market difficulties, pangasius processing and exporting enterprises also face difficulties in terms of raw materials, credit and production. Input costs from broodstock to feed and other costs are constantly rising, farmers “abandon” ponds, leading to the risk of shortage of raw materials. Both farmers and export processing enterprises fall into a lack of capital to maintain production and business.
The current context of the pangasius industry is in need of the cooperation and support of the Government and state agencies as well as the solidation of farmers and businesses.
Pangasius exports in the coming time are mainly expected to China, some European countries such as the UK, Germany, Portugal and the Middle East markets. Pangasius exports are expected to recover in the third quarter of 2023, thanks to trade promotion programs.