Pangasius industry is forecasted to achieve a growth rate of 20-25% in 2022

From the forecast that the market will recover quickly after the Covid-19 epidemic and the reality of farming areas in the Mekong Delta, it is expected that in 2022, the pangasius industry will reach the growth of  20-25%.

According to Deputy Minister Phung Duc Tien, the market for raw pangasius has signaled a rapid recovery in the Mekong Delta. New opportunities from the pangasius export market in 2022 are opening.

In 2021, the pangasius industry will face many difficulties due to the direct impact of the Covid-19 pandemic. In 2020, the blockade order in export markets directly affected pangasius exports. From the third quarter of 2021, the Covid-19 pandemic has created many challenges for pangasius farming households in the Mekong Delta provinces. The production, processing, and export of pangasius have experienced many fluctuations in 2021.

The Deputy Minister noted that the price of raw pangasius is currently an essential premise for the development of production and consumption in 2022. Still, there are also many potential risks for the stable development of the industry. Therefore, for the pangasius industry to achieve good results in 2022, the General Department of Fisheries and relevant functional agencies under the Ministry need to coordinate with localities, properly assess the situation, and promptly make recommendations to overcome difficulties to develop the pangasius industry effectively and sustainably.

For the three months of July, August and September exclusively, in 2021, the pangasius farming area has decreased by 30-55% and the output by 17.9% compared to the same period in 2020, due to many localities having to implement social distancing. Many seafood processing enterprises have suspended or stopped their operations because of the inability to meet costs and "3 on the spot" condition.

The Ministry of Agriculture and Rural Development has promptly implemented many actions to solve difficulties such as: establishing a "Working group 970"; coordinating with the Ministries of Health, Transport, Industry and Trade and localities to directly handle the issues; organizing some conferences to discuss solutions to remove difficulties for seafood production and consumption.

Therefore, aquaculture production in 2021 still maintained growth. Aquaculture production for the whole year reached over 4.8 million tonnes, up 1.1% compared to 2020. Pangasius production reached 1.52 million tonnes, up 1.63% over the same period in 2020. Pangasius export turnover reached US$ 1.62 billion, up 8.4% over the same period last year. It is a spectacular comeback of the pangasius industry in 2021.

From the last two months of 2021, pangasius production and export activities in the region have gradually recovered, prices have increased day by day. After controlling the pandemic, the market showed vital signs of recovery. Pangasius exports rose again in many countries.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP) and pangasius processing and exporting enterprises in the Mekong Delta, all pangasius export markets are improving. Since then, the price of commercial pangasius has also increased to VND 29,500-30,000 per kilogram, an increase of VND 4,000-5,000 per kilogram compared to the last months of 2021.

In 2022, Ms. To Tuong Lan - Deputy Secretary-General of VASEP, forecasting pangasius export opportunities, commented: The import market recovered and grew well. In which there are four primary markets: China (accounting for  31% market share), US (23%), CPTPP (13%), and EU (6.6%), all of which are likely to grow strongly in 2022. The price of exported fish is forecasted to increase by about 5% due to costs of farming, logistics, labor, etc. Therefore, pangasius exports in 2022 are forecast to increase by 20-22% compared to 2021.

In addition to the opportunities, there are still challenges. The fisheries sector and its partners in the production chain need to assess and orient the farmers. That is to balance supply and demand to increase profits and value for the pangasius industry.

Although production activities have recovered, the epidemic has not yet ended, which is still a challenge for the supply chain. Production and transportation costs escalate, the shipping situation still needs a positive solution. On the other hand, in the US, rising inflation may cause purchasing power to decrease, so a sudden increase like 2021 is unlikely to happen.