China loses its tilapia market — Vietnam’s “pangasius king” quickly steps in, earning billions

In the context of declining pangasius exports, Nam Viet Corporation (ANV) has emerged as a pioneer in shifting towards tilapia production, capitalising on the supply gap in the US market as China’s exports shrink due to higher tariffs.

Once a flagship product of Vietnam’s seafood exports, pangasius is showing signs of slower growth. Although export value in the first nine months of 2025 rose 9% year-on-year to nearly US$1.6 billion, the increase still lagged behind the overall seafood sector’s growth of +15.5%, according to data from VASEP.

The slowdown became more pronounced in September with only a 5% year-on-year rise, while exports to key markets declined — including the US (-23%), EU (-1%), and Brazil (-16%). Price competition in China and anti-dumping risks in the US remain key challenges for the industry.

Against this backdrop, tilapia is emerging as a new strategic alternative. Frozen tilapia fillets (HS 030461) have become the most consumed whitefish product in the US as of July 2025, according to VASEP.

A significant opportunity has opened up as China — the world’s largest tilapia supplier — faces US tariffs of up to 150%, including the previous 25% tariff from Trump’s first term and an additional 125% under the new tariff package. This has effectively paralysed Chinese tilapia exports to the US, creating a massive market gap for alternative suppliers — including Vietnamese producers.

Seizing this opportunity, Vietnam has significantly accelerated its tilapia exports.

According to customs data compiled by VASEP, in the first eight months of 2025, Vietnam’s tilapia export value (excluding red tilapia) surged by 359% year-on-year to US$52 million, with the US accounting for about 70% of total shipments. Combined tilapia exports, including red tilapia, reached US$63 million, surpassing the total value of the previous five years combined.

Notably, according to the International Trade Center (ITC), for frozen tilapia fillets (HS 030461), Vietnam has risen to become the second-largest supplier to the US market, behind only China. During the first seven months of 2025, the US imported a total of US$262 million worth of frozen tilapia fillets (HS 030461) from global suppliers — a 19% increase year-on-year, underscoring the continued strength of market demand.

ANV: From 0% to 21.4% of Revenue in Just One Year

Nam Viet Corporation (ANV) has emerged as a case study in successful strategic transformation. Its subsidiary, Indo-Pacific Co., Ltd., became Vietnam’s largest tilapia exporter in the first eight months of 2025, according to VASEP.

According to a report by Phu Hung Securities, tilapia contributed 21.4% of Nam Viet Corporation’s (ANV) total revenue in the first nine months of 2025, equivalent to over VND 1 trillion, whereas the segment was negligible during the same period last year.

“Export orders are abundant, and our factories are struggling to keep up with delivery schedules,” revealed Mr. Doan Toi, CEO and Vice Chairman of ANV, in early April 2025.

To meet growing demand, ANV is converting its 600-hectare farming area in Binh Phu — the company’s largest aquaculture zone — to tilapia farming, with 70% of ponds already transitioned. The company also plans to expand processing capacity to 1,000 tons per day.

ANV’s competitive advantage lies in its self-sufficient raw material base.

The company’s tilapia farming cost stands at only VND 23,000–24,000 per kilogram, significantly lower than the market raw fish price of VND 28,000–29,000 per kilogram. Meanwhile, export prices to the US reach around US$4.02 per kilogram (≈ VND 104,500/kg), resulting in a notable improvement in profit margins.

13 major corporations approach ANV following U.S. tariff announcement

After the U.S. imposed new tariffs on Chinese seafood products, 13 major international corporations reached out to Nam Viet Corporation (ANV) to explore potential supply partnerships. This underscores the rapid shift of global seafood supply chains from China to Vietnam.

ANV has also been actively expanding its export markets. In addition to securing contracts with major U.S. retailers such as Walmart, Costco, Kroger, and Meiji, on July 5, 2025, ANV signed a strategic cooperation agreement with AV09 Comercio Exporter Ltda, one of Brazil’s largest food importers. With this milestone, ANV became the first Vietnamese company to officially export tilapia to Brazil through formal trade channels.

The transformation strategy is already showing strong results in ANV’s performance. According to its Q3 2025 financial report, ANV recorded revenue of over VND 4.8 trillion in the first nine months, up 35% year-on-year, while pre-tax profit surged 1,220% to over VND 850 billion, achieving 170% of the full-year profit target.

A report from Phu Hung Securities (PHS) highlights that the tilapia segment offers higher profit potential than pangasius, thanks to lower farming costs and FOB export prices to the U.S. reaching up to US$5 per kilogram (compared with US$2.5–3.4/kg for pangasius).

ANV aims to maintain a revenue structure ratio of 70:30 or 60:40 between pangasius and tilapia, with pangasius remaining the core business, but tilapia serving as the main growth driver. The company targets VND 7.6 trillion in revenue and VND 1.3 trillion in pre-tax profit by 2026.

Global Competition Remains Fierce

In the U.S. market, major producers such as Indonesia (1.2 million tonnes), Egypt (over 1 million tonnes), and Brazil (over 662,000 tonnes) are all actively participating, according to VASEP. Although Vietnam’s total production remains lower — around 300,000 tonnes in 2024 — the country’s focus on high-value frozen fillet exports for the U.S. market is considered a strategically sound direction.

However, Vietnam’s tilapia industry still faces multiple challenges, VASEP noted. Key issues include limited fingerling quality, disease risks (especially TiLV virus), dependence on imported feed, tariff and technical barriers in key export markets such as the U.S., competition from Brazil and China, and weaknesses in domestic supply chains.

To achieve sustainable growth, VASEP recommends that the sector should focus on comprehensive solutions, including:

• Improving breeding stock and farming technologies

• Localising feed supply

• Investing in deep processing and value-added products

• Obtaining international certifications such as ASC and BAP

• Enhancing supply chain transparency

• Expanding trade promotion and tariff negotiations, together with policy and infrastructure support from the Government.

According to Mr. Nguyen Hoai Nam, Secretary General of VASEP, the global tilapia market is forecast to reach US$14.5 billion by 2033. This presents a significant opportunity for Vietnam to position tilapia as the country’s next key export product, following shrimp and pangasius.

According to Tạp chí điện tử Nhịp sống thị trường

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