Opportunities for Vietnam’s exports to Mercosur

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Businesses expect pangasius exports to Brazil to grow well.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Mercosur was established in 1991 and includes Argentina, Brazil, Paraguay, and Uruguay. Mercosur is a dynamic, competitive and developing economic and industrial region, with growing influence as the 5th largest economic block in the world. With an important geographical location in the East Asia and Asia-Pacific region, Vietnam is a key gateway for Mercosur members to enter the ASEAN market.

As a member of the Mercosur bloc, Brazil is currently Vietnam's largest trading partner in the bloc and in Southeast Asia.

According to statistics from Vietnam Customs, in the first half of June, Vietnamese pangasius exports to Brazil increased by 5% year-on-year to US$ 4 million. Cumulative pangasius exports as of the first half of June rose 47% year-on-year to US$ 50 million.

The export turnover in January achieved the highest turnover of about US$ 14 million, up 83% compared with the same period in 2023. Only in February, the value of pangasius exports to this market dropped 6% to US$ 6 million.

Since the beginning of this year, Brazil has almost only imported frozen pangasius products and frozen pangasius fillets from Vietnam. Hung Ca 2 is the largest pangasius supplier to the market in the first five months of this year, accounting for 19% of the value proportion.

In addition, Vietnam’s pangasius exports to other markets in the bloc still sees potential. By the end of May, pangasius exports to Argentina increased 238% to US$1.5 million; to Uruguay at more than US$700 thousand, a slight increase of 2% over the same period in 2023.

Meanwhile, Paraguay is still quite limited in importing pangasius from Vietnam. This country is a major exporter of agricultural products, livestock and electrical energy in the world. Currently, Vinh Hoan is the only Vietnamese company exporting to this market in the first five months of this year.

Due to geographical distance, language differences, no direct freight or passenger transport route, leading to high logistic costs for goods transported from Vietnam to this market, so the two sides have not yet signed any free trade agreement.

Businesses expect that Vietnam and the Mercosur block will soon sign the first FTA, opening opportunities for export trade cooperation between the two sides, including pangasius exports to the block.