Chinese market recovers
VASEP's newsletter shows that in May 2024, the export volume of pangasius products reached more than 83,000 tons, up 46% over the same period last year, up 8% over the previous month.
Of which, exports to China and Hong Kong continued to increase by 20% compared to the same period last year. In addition, the export volume of pangasius to some other markets also recorded significant increases such as: ASEAN increased by 7%, Mexico increased by 15% and the UK increased by 33%.
In particular, the Chinese market is recovering strongly, with high demand and stable prices. This may continue to promote Vietnam's pangasius exports in the last 6 months of this year.
Pangasius prices in Chinese retail stores are cheaper than domestically farmed freshwater fish, such as carp. After rising 3% in March, pangasius prices continued to fall in the following two months. The weakening economy has made consumers more cautious about spending. VASEP experts said that the advantages of reasonable prices and good fillet quality are among the factors that make pangasius increasingly popular and gain a foothold in this market.
Processing tra fish at Vinh Hoan Company. Photo: PV
In May 2024, the export volume of pangasius to China and Hong Kong reached more than 29,000 tons, the highest level since February last year, and the highest growth rate since February 2024.
Pangasius export volume to the US in May 2024 reached more than 13,000 tons, down slightly from the previous month, while the average export price increased by 1.7% to 2.95 USD. After a gloomy 2023 with continuously decreasing export turnover, pangasius exports to the US have gradually become brighter.
According to Vietnam Customs, in the first half of June 2024, pangasius exports to the US reached nearly 14 million USD, up 39% over the same period. As of June 15, 2024, cumulative pangasius exports to this market reached 146 million USD, up 18% over the same period in 2023.
Pangasius exports continue to increase
It is forecasted that in the last 6 months of 2024, the export volume of pangasius will continue to increase due to high demand from major markets such as China and ASEAN. However, the export price of pangasius will likely remain low due to competitive pressure and high input costs. Pangasius exporting enterprises need to focus on improving product quality, diversifying markets and finding solutions to reduce production costs.
In May 2024, the export volume of pangasius to the EU was assessed to be relatively stable, although it decreased slightly to more than 6,000 tons.
However, in May 2024, the average export price to this market was equivalent to that of March 2024 at 2.43 USD/kg, down 4.7% compared to the previous month.
Regarding the ASEAN market, in May 2024, the export volume in May 2024 reached nearly 9,000 tons, this is the highest import volume this market has imported since November last year.
However, the average export price decreased by 7.5% to 1.74 USD/kg - the lowest level since late 2021 while farmers are facing higher input costs.
Thus, the export volume of Vietnamese pangasius in May 2024 reached the highest level in the past 2 years.
Of which, the Chinese market was the main driver for this growth, with the highest import volume since February last year.
However, the export price of pangasius has not shown any signs of recovery, and is showing a downward trend in some markets, due to the high input costs for pangasius production while the selling price remains low. This may affect the profits of pangasius exporting enterprises.
Support from FTA CPTPP
Can Tho people take care of tra fish. Photo: KN
According to experts from VASEP, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is considered an important stepping stone for the seafood industry to “take off”, including tra fish. The implementation of FTAs always creates favorable conditions for businesses to expand and diversify markets, bringing Vietnamese seafood, including tra fish, deeper into the global production and supply chain.
CPTPP took effect in Vietnam from January 14, 2019. After 5 years of implementation, this new generation FTA has opened up opportunities for exporting Vietnamese pangasius to the CPTPP market.
Exporting agricultural, forestry and fishery products in general, and exporting pangasius in particular, is a difficult industry to negotiate to achieve open commitments. However, in the CPTPP, partners basically eliminate and reduce taxes to 0% as soon as the FTA takes effect for most of Vietnam's seafood products, including pangasius.
In 2024, when the inventory due to massive imports in 2022 has gradually depleted, pangasius exports will begin to recover and flourish in some markets, including the CPTPP market block. This market block mainly consumes frozen pangasius fillets from Vietnam.
Customs data shows that in the first 5 months of this year, exports of this product to the CPTPP bloc reached nearly 89 million USD, an increase of 6% over the same period last year, accounting for 87% of the proportion, and accounting for 15% of the total export value of frozen pangasius fillets from Vietnam to markets.
In addition, exports of other pangasius products to the CPTPP bloc also recorded growth in the first 5 months of this year.
By the end of May 2024, the export value of frozen whole cut pangasius/whole butterfly-cut pangasius, pangasius bladder,... HS code 03 (except fish HS code 0304) reached 9 million USD, up 20% over the same period, accounting for 9% of the proportion, and accounting for 7% of the total export value of this product to markets; Export of value-added pangasius to the CPTPP bloc reached nearly 5 million USD, up 55% over the same period in 2023, accounting for 5% of the proportion and accounting for 37% of the total value-added pangasius exported by Vietnam to markets.
According to the latest data from Vietnam Customs, in the first half of June 2024, Vietnam's pangasius export turnover to the CPTPP market reached 12 million, an increase of 23% over the same period in 2023. As of June 15, 2024, the cumulative pangasius export to the CPTPP market reached 114 million USD, an increase of 10% over the same period.
Of which, Mexico is the country importing the most Vietnamese pangasius with a value of 31 million USD, up 7%; Japan imported 18 million USD, up 35%; Canada imported 18 million USD, up 15%; Singapore imported 16 million USD, up 0.2% over the same period last year.
In the last 6 months of 2024, pangasius exports to the CPTPP bloc are expected to continue the growth momentum of the first 6 months of the year when prices and demand are gradually stabilizing. To achieve this result, according to VASEP, businesses need to improve their competitiveness, study the benefits that this agreement brings in terms of tariffs to seize opportunities and increase exports.
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