Major markets are 'hungry' for Vietnam’s pangasius

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), pangasius is one of the key seafood products experiencing an export boom in the first months of 2022. It is estimated that in the first four months of the year, pangasius exports have reached over USD 950 million, up 94% over the same period in 2021.

Vietnamese pangasius’s recent impressive growth rate is primarily thanks to the high demand for this item in key markets. The 2022 Pangasius Industry Report of the Bank for Investment & Development of Vietnam Securities Company (BSC) shows that the demand for pangasius has experienced a strong increase in world markets after a long pent-up period due to the Covid-19 pandemic.

In the main markets such as the USA, China and the EU, seafood demand once again increases because of the high vaccination rate in these areas (over 60% of the population), even some countries have applied booster shots. This opens up an expectation for maintaining an economy opening that boosts seafood consumption demand since more than 60% of seafood output is consumed through service (restaurants and hotels).

The USA market is currently very low on pangasius inventories after two years of the disease. This has caused US importers to increase the import of pangasius. The China market has begun to promote pangasius since the end of 2021 to meet the demand of the 2022 Lunar New Year in the context of exhausted pangasius stocks.

Thanks to that, Vietnam's pangasius exports to China have grown very strongly in the first quarter of this year. BSC believes that after locking down many cities to prevent Covid-19, China will gradually proceed toward market reopening. At that time, with high consumption demand, China will be the determining factor in the growth momentum of Vietnam's pangasius industry in the second half of 2022.

The food crisis in Europe is also a great opportunity for Vietnamese pangasius. According to VASEP, for many years, the “scene” of Vietnam’s pangasius exports to the EU is quite bleak as it often follows a downward trend. In 2021, pangasius exports to this market area decreased by 17% compared to 2020, only reaching USD 106.2 million. However, in the first four months of 2022, pangasius exports to the EU increased by 86.2% compared to the same period in 2021 with an export value of USD 46.7 million. This shows that the demand for pangasius is returning in the EU which used to be the largest market for Vietnamese pangasius.

Meanwhile, Russia, the world's top exporter of white meat fish products such as cod and pollock, is suffering from sanctions due to the Russia - Ukraine conflict. This is also the reason why the world lacks the supply of white fish, but also an opportunity to increase the demand for Vietnamese pangasius.

The Food Safety and Inspection Service (FSIS) under the US Department of Agriculture has just recognized six more Vietnamese pangasius processing factories that are allowed to process and export pangasius products to the USA market. Thus up to now a total of nineteen Vietnamese pangasius processing factories have been recognized in the FSIS list.