Positive news from the United States market regarding Pangasius

The United States remains Vietnam's key target market

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the export turnover of Vietnamese pangasius to the United States reached 169 million USD between the beginning of the year and  August 15, 2023, which is a decrease of 59% compared to the same period in 2022.

The United States has been a disadvantageous market for Vietnamese pangasius in early 2023 due to the inflation, economic decline, and high inventories caused by excessive imports in the first half of 2022. Consequently, these factors have significantly impeded the import of Vietnamese pangasius into this market.

According to VASEP, the export price of Vietnamese pangasius to the United States ranged from 2.97 to 3.45 USD per kilogram during the first six months of 2023. Vietnam primarily exports frozen pangasius fillets, frozen sliced or cut pangasius, frozen breaded pangasius, dried pangasius, and fried pangasius skin to the United States.

The three leading Vietnamese companies in the export of pangasius to the United States are Vinh Hoan, Bien Dong Seafood, and Van Duc Tien Giang, accounting for 51%, 18%, and 11% of the total export turnover, respectively.

Despite the sharp decline in pangasius exports to the United States in early 2023, the United States has remained one of the key target markets for Vietnamese pangasius.

According to VASEP, the United States has maintained its position as the world's second-largest importer of Vietnamese pangasius since 2019 after China - Hong Kong with a market share of approximately 22%. Most notably, Vietnam's export of pangasius to this key market reached 537 million USD in 2022, which is an increase of 41% compared to that of 2013.

Recent positive signals

VASEP reported that on September 7, the Federal Register of the United States published the preliminary results for the 19th administrative review (POR19) of Vietnamese frozen pangasius fillets exported to the United States between August 1, 2021, and July 31, 2022.

According to the results, two Vietnamese pangasius export companies, Vinh Hoan Corp and Can Tho Seafood Import Export Corporation (Caseamex), are mandatory respondents. Vinh Hoan Corp is subject to a tax rate of 0 whereas Caseamex is subject to a rate of 0.14 USD per kilogram. Several other export companies also enjoy a tax rate of 0.14 USD per kilogram including I.D.I CORP, Cafatex Seafood Joint Stock Company, Loc Kim Chi Seafood Joint Stock Company, and Hung Vuong Corporation. Accordingly, the preliminary POR19 tax rates are lower compared to the final results of the previous POR18.

The Inspection Delegation of the United States Food Safety and Inspection Service (FSIS) under the United States Department of Agriculture (USDA) previously visited Vietnam in August 2023 to assess the equivalence of the food safety control system for pangasius.

Deputy Minister Phung Duc Tien stated: "Regarding pangasius, we are aware that there has been a struggle with the United States market over anti-dumping duties. Vinh Hoan Corporation is a pioneer who has persevered and emerged victorious."

"During the recent inspection conducted by the FSIS, the Ministry of Agriculture and Rural Development has proactively directed relevant agencies to focus on inspecting aquacultural production areas. Thanks to thorough preparations, the Ministry received highly commendable inspection results from the United States. Only a small number of minor issues were found in some businesses and aquacultural production areas. In terms of state management, the Ministry has made fundamental improvements compared to previous inspections. This is a very positive outcome for the pangasius industry as well as the Vietnamese seafood industry," Deputy Minister Phung Duc Tien added.

Multiple forecasts indicate that the consumption demand for seafood products and particularly pangasius in the United States market will increase towards the end of the year during the holiday season. Additionally, the favorable results from the POR19 and the recent inspection conducted by FSIS will foster a positive outlook for Vietnamese pangasius exporters in late 2023.

Furthermore, Vietnam and the United States have experienced 28 years of diplomatic relations from 1995 to 2023 and 10 years of Comprehensive Partnership from 2013 to 2023. During the President of the United States Joe Biden's state visit to Vietnam on September 10, both countries agreed to elevate their diplomatic relationship to a Comprehensive Strategic Partnership for Peace, Cooperation, and Sustainable Development. This milestone in the Vietnam - United States diplomatic relations is expected to provide new opportunities for the export of Vietnamese seafood products and pangasius. Consequently, these opportunities will further solidify Vietnamese pangasius' position in this market.

Deputy Minister Phung Duc Tien stated: "After 25 years, we can proudly say that the Vietnamese pangasius industry has become a significant economic and technical sector with a production volume of 1.6 million tons, and an export turnover of 2.46 billion USD in 2022. Vietnamese pangasius has been recognized by the United States as an equivalence with regards to the level of seed production, farming, harvesting, processing, and export. Over 50% of Vietnamese pangasius production is exported to the US market."