Conquering nearly 140 countries, what does Vietnamese pangasius do to 'overcome' a series of 'heavyweight' competitors?

The "heavyweight" competitors of Vietnamese pangasius

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), competition with rivals to gain market share for exported Vietnamese pangasius products is increasingly difficult and fierce.

VASEP cited the "gut" markets for Vietnamese pangasius exports as China, the US, the EU, CPTPP... However, these markets are currently consuming cod and pollock strongly because of their delicious taste and nutrition.

"Cod is considered the "king" of fish, with high brand value. Pollock is also very nutritious, with a more stable price than other types of fish.

According to data from the International Trade Center (ITC), in the first half of this year, China's imports of frozen cod with HS code 030363 from the world reached nearly 296 million USD, down 10% compared to the same period in 2023. 2022 was the year this country imported the most frozen fish, with more than 732 million USD, up 49% compared to 2021.

Second in popularity in China after pollock, cod is the most consumed whitefish in the US, especially frozen cod fillets with HS code 030471. In 2023, imports of this product into the US reached 475 million USD, down 22% over the same period, accounting for 27% of the total whitefish imported by the US from the world. Previously, in 2022, the country consumed nearly 610 million USD of cod fillets, up 47% over 2021, and was the year of the highest import of this product to date.

Hake is a good alternative to cod with a sweet taste, less fat and more affordable and stable price than other fish species. However, hake is less diverse in products and is often used to make basic products such as fish balls and fish fillets.

According to ITC, in the first half of this year, China's imports of frozen Alaska pollock HS code 030367 reached more than 353 million USD, down 23% compared to the same period in 2023. Up to now, 2019 is recorded as the year China consumed the most of this product, with nearly 941 million USD, up 44% over the same period.

Tilapia is also rich in protein and essential amino acids, and the price of tilapia is often quite competitive in the market. Tilapia, especially frozen tilapia fillets, is a favorite product in the US, second only to cod fillets. According to ITC, in 2023, the US imported 372 million USD of this product, down 28% compared to 2022.

Basa fish has many similarities with tra fish, but basa fish is usually larger in size and has thicker meat. However, the quality of basa fish meat is not consistent and the brand has not been built as strongly as tra fish.

“Competitive” advantages of Vietnamese pangasius

As one of the largest farmed fish in the world, Vietnamese pangasius has its own advantages: Competitive price: Vietnamese pangasius is often cheaper than other white-fleshed fish, attracting many customers, especially in emerging markets; Large, stable output: Vietnam is one of the largest pangasius producers in the world, ensuring a stable supply for the market; Product diversity: Pangasius is processed into many different products, meeting the needs of many customers; Favorable geographical location: Vietnam has a favorable geographical location, helping to reduce transportation costs and shorten delivery times.

However, according to VASEP, the quality of pangasius products is still uneven, depending on many factors such as breed, feed, farming environment; facing many trade barriers such as import tax, technical regulations, etc.;

Unfair competition activities such as dumping and trade fraud can affect the reputation of Vietnamese pangasius in the international market; The change in market policies while the cost of pangasius production is increasing due to increased input material prices and increased labor costs, also affects pangasius exports.

In addition, Vietnamese pangasius also faces competition from other catfish producing countries such as India, Bangladesh, and Indonesia. These countries all have advantages in raw materials and production costs, creating considerable pressure on the Vietnamese pangasius industry.

According to ITC, Vietnam is the second largest supplier in the race to export whitefish to China, after Russia. In the first half of this year, China imported nearly 80,000 tons of whitefish (mainly pangasius) from Vietnam, down 17% compared to the same period in 2023.

Meanwhile, imports from the US reached 45 thousand tons, up 57%; from Norway reached 19 thousand tons, up 28%; from Greenland reached nearly 5 thousand tons, up 188%; from the Netherlands reached more than 5 million USD, up 179%; from Korea reached more than 2 million USD, up 237%,...

According to ITC, Vietnam is also the second largest supplier of whitefish (mainly pangasius) to the US, after China. In the first 5 months of this year, the US imported more than 45 thousand tons of whitefish (mainly pangasius) from Vietnam, an increase of 37%, accounting for 30% of the total US whitefish imports from the world.

Each type of fish has its own advantages and disadvantages. Vasep emphasized that Vietnamese pangasius has advantages in price and output, but needs to improve quality, build brands and diversify products to compete more effectively.

“To overcome competitors, Vietnamese pangasius needs to focus on improving product quality: ensuring food safety and hygiene, applying international standards; building a brand: creating a positive image for Vietnamese pangasius in the international market; diversifying markets: finding new markets, especially high-end markets; developing value-added products: processing pangasius into products of higher value; investing in technology: applying modern technologies to the production, processing and preservation of pangasius; sustainable development: focusing on sustainable development, protecting the environment and ensuring workers' welfare…” - VASEP commented.

According to this organization, Vietnamese pangasius has great potential to compete in the international market. However, to be successful, the pangasius industry needs to proactively “deepen” the market, improve product quality, build brands, and diversify markets.

Source: https://baophapluat.vn/chinh-phuc-gan-140-quoc-gia-ca-tra-viet-nam-lam-gi-de-vuot-loat-doi-thu-nang-ky-post521629.html