Huge space for Vietnamese pangasius businesses to enter the densely populated market segment
Why did the Chinese market leave the top position of importing Vietnamese pangasius? | |
One more Vietnamese pangasius exporter to US enjoys zero tariffs | |
Vietnamese pangasius is popular in many markets |
Deeply processed pangasius for export is very small. Photo: L.T |
Huge space for export
Vietnam's pangasius exports have dropped sharply since the beginning of the year. Businesses are hopeful because the export potential for this key product is very large.
Mr. Ong Hang Van, Deputy General Director of Truong Giang Seafood Company, said that the company currently has three processing factories with 300 raw materials/day capacity. However, in the first half of 2023, pangasius businesses will suffer many impacts, with many difficulties affecting export turnover. Vietnam's key pangasius export markets fell deeply, especially the U.S. and China markets. The inventory of Pangasius enterprises is extensive. There are many fish in the pond.
Sharing the same opinion, Ms. Le Hang, Communications Director of VASEP, said that Vietnam's pangasius exports in the first seven months of 2023 will reach one billion USD, down 37% over the same period. Notably, key markets such as China, Hong Kong and the U.S. are showing more positive signals. By the end of July 15, 2023, pangasius exports to China and Hong Kong accounted for 32% of the proportion. Turnover reached U.S. $301 million, down 33% compared to the same period in 2022. This market imported more than U.S. $20 million of Vietnamese pangasius in the first half of July. In the first seven months of this year, pangasius exports to China and Hong Kong could reach U.S. $337 million, down 58% over the same period in 2022.
According to Ms. Le Hang, after China and Hong Kong, the U.S. maintains the No. 2 position in importing Vietnamese pangasius. This country has imported nearly U.S. $150 million of pangasius from Vietnam as of July 15, 2023, down 60% compared to the same period in 2022, accounting for 16% of the proportion of pangasius exports. Pangasius exports to this market in the first seven months of this year could reach U.S. $162 million, down 20% compared to the same period in 2022.
Mr. Willemink Arno, Operations Director of De Heus Vietnam, said that Vietnam's consumption of white fish, including pangasius, in the world market is quite high, especially in high-income countries, such as the U.S., consumption is about 22 kg/person/year; meanwhile, in low- and middle-income countries there is lower consumption of white fish. Therefore, the potential for Vietnamese pangasius consumption in low-income markets is very large.
"Panga fish production in Vietnam is about 2.5 million tons/year, while China reaches 27 million tons of fish production/year, a growth rate of about 15% per year. Despite the production potential of China is very big, the per capita consumption in urban areas is small, so the demand in the market is very great, which will be an opportunity for Vietnamese pangasius businesses to increase market share" - Mr Willemink Arno emphasized.
Export expectations reach U.S. $1.77 billion
After many months of deep decline, pangasius exports have had positive signals from many markets. According to Mr Ong Hang Van, in June and July 2023, the number of seafood products, including exported pangasius, of Truong Giang Company is on the rise again. This signals that the market will recover in the remaining months of this year and 2024.
Similarly, the major export markets of Vinh Hoan Seafood Joint Stock Company recorded positive growth again. Of which, exports to the European Union (E.U.) market reached VND 153 billion in July 2023, an increase of 22% over the same period last year. Similarly, export revenue to China increased by 13% and export revenue to remaining markets increased by 20% compared to July 2022.
Ms Le Hang said that Vietnam's pangasius export turnover to China and Hong Kong has shown more positive signs as the decline gap has gradually narrowed. If April 2023 decreased by 66%, May 2023 decreased by 30% compared to the same period in 2022. In June, this reduction decreased to 15%. Since 2020, China and Hong Kong have always maintained the No. 1 position regarding Vietnamese pangasius consumption. China and Hong Kong maintained the highest growth compared to the main markets.
According to Mr. Willemink Arno, with the current market demand, Vietnamese Pangasius export enterprises should focus on low-cost markets. At the same time, focus on preparing for potential markets that will recover in the last months of the year and 2024, when the economy will recover globally, along with the price of feed ingredients for pangasius gradually stabilized.
According to VASEP's assessment, if, according to the optimistic scenario, the market progresses smoothly, farmers have good capital, and manufacturers continue to stand firm, pangasius exports this year could reach U.S. $1.77 billion, down more than U.S. $ 0.5 billion from the original estimate of U.S. $2.3 billion.
However, Pangasius export businesses are calculating the amount of fish in stock in markets and focusing on deep processing. Because pangasius fillet exports account for a large proportion, while export processing output accounts for only 2%./.
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