In 2022, the pangasius industry made a miracle when it brought in an export turnover of more than US$2.4 billion, the highest ever, making an important contribution to the export record of US$11 billion of the whole seafood industry. However, export pangasius products are mostly only in preliminary form…
According to VASEP, by 2022, Vietnamese pangasius has conquered more than 140 markets around the world, including traditional and strict markets like the US, EU, and markets that don't like farmed fish like Japan. With an export turnover of $1.5-2.4 billion per year, pangasius accounts for 16-26% of Vietnam's total seafood export value.
However, exported pangasius products are mostly in the form of preliminary processing, while the proportion of deeply processed and value-added products is still too modest. Specifically, in the structure of pangasius export products in 2022, frozen pangasius fillets accounted for 86%; fresh/frozen/dried pangasius whole, cut into pieces 12%; and processed pangasius only accounted for 2%.
When sent to the import market, the fake pangasius with mutton rolls with rice paper is broken and does not meet the quality requirements. Meanwhile, fillets and whole cuts are rudimentary product lines brought into restaurants or purchased by consumers for processing according to their needs and preferences.
The import market focuses on buying Vietnamese pangasius fillets and whole pieces because it is convenient for processing many different products. Enterprises also want to increase the value of pangasius by entering the value-added product segment, but now only stop at breaded products with negligible output.
The market is in need of fillet products, and whole pieces, and this segment still brings many benefits to businesses and farmers, so this preliminary product line is still being chosen by businesses.
On the other hand, barriers in tax rates, hygiene checks, or more stringent related standards of importing countries for deep-processed products are also obstacles for enterprises to promote this segment.
Loss of "unique" position
According to the Ministry of Agriculture and Rural Development, pangasius is a national product and has been included in the agricultural restructuring program. The Pangasius industry is constantly developing and has become a famous global industry.
However, in recent years, Vietnamese pangasius has gradually lost its unique position as countries such as India, Bangladesh, Indonesia, and China have produced a significant amount of pangasius.
The Global Seafood Market Conference (GSMC) estimates that global pangasius production in 2023 will increase by 62,000 tons, to more than 3.4 million tons. Vietnam accounted for 44% with more than 1.4 million tons; followed by India, China, Bangladesh, and Indonesia.
In 2022, pangasius export turnover will reach US$2.44 billion, up 51% compared to 2021. The top five markets of Vietnamese pangasius are China, the US, Mexico, Brazil, and Thailand, respectively.
Pangasius is also the item with the highest growth in seafood exports in 2022. However, in January 2023, this is also the item with the strongest decline when it decreased by 50% over the same period, reaching US$106 million.
Read more: Seafood Industry Report
SEAFOOD INDUSTRY REPORT - 12/2022