Opportunities for Vietnamese tilapia in the U.S. market

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam’s export value of tilapia and red tilapia (a tilapia variant) in 2024 exceeded USD 41 million, up 137% compared to the previous year. Of this, tilapia exports accounted for over USD 27.8 million, while red tilapia contributed USD 13.2 million.

Chinese tilapia faces 150% tariff in the U.S.

At a recent seminar on solutions for organizing tilapia production and export in 2025 held in Can Tho, Mr. Nguyen Hoai Nam, Secretary General of VASEP, reported that global tilapia production reached approximately 7 million metric tons in 2024. The U.S. remains the world’s largest importer of tilapia, importing more than 178,000 metric tons in the same year.

For years, China has been the world's leading exporter of tilapia and the primary supplier to the U.S. market. Since 2018, the U.S. has imposed a 25% tariff on Chinese tilapia imports, resulting in a 40% drop in Chinese tilapia exports to the U.S. compared to 2015.

According to China’s official statistics, the country produced around 1.7 million metric tons of tilapia in 2024, with 55% designated for export. In total, China exported 479,000 metric tons of tilapia, generating USD 1.405 billion in export value. The U.S. remained the largest single destination for Chinese tilapia, importing 127,700 metric tons in 2024.

“In the first quarter of 2025, Vietnam’s tilapia and red tilapia exports reached nearly USD 14 million, an increase of 131% over the same period last year, with the U.S. accounting for 46% and Russia for 13% of the total export value,” said Mr. Nguyen Hoai Nam, Secretary General of VASEP.

In the past week, a new 125% tariff imposed by the U.S. on Chinese tilapia, on top of the existing 25% tariff from former President Donald Trump’s first term, has brought the total tariff rate to 150%. This has effectively halted Chinese tilapia exports to the U.S., creating divergent market trends in both countries.

In response, tilapia processors in Guangdong and Hainan provinces of China have been cutting raw material costs and reducing procurement volumes. Recently, a processor in Guangdong issued a notice to farmers stating that, effective April 9, the purchase price for tilapia weighing over 500g would be capped at 8.6 RMB/kg (USD 1.17/kg), while prices for fish weighing 300g–500g would not exceed 6.6 RMB/kg, a decrease of 0.7 RMB/kg compared to the previous week.

Similarly, another processing facility announced that from April 9, it would reduce raw material purchase prices by at least 0.4 RMB/kg. The farm-gate price for tilapia weighing 500–800g would be 8.8 RMB/kg, and for fish weighing 300–500g, 6.8 RMB/kg. In Hainan, price reductions have been even steeper, with decreases of 1.0 RMB/kg from the previous week.

Meanwhile, wholesale tilapia prices in the U.S. surged significantly during week 15. “Even at a 100% tariff, we could no longer afford to buy from China, let alone at 150%. We can only hope that the government will support the industry through this difficult time," a U.S. tilapia importer shared.

Elevating tilapia as a key export product alongside shrimp and pangasius

Mr. Nguyen Van Tien, Global Aquaculture Research and Development Leader at De Heus, noted that over the past few days, orders from U.S. partners for Vietnamese tilapia have surged dramatically — a clear sign that traders who previously sourced mainly from China are now shifting to alternative suppliers, including Vietnam.

Forecasts suggest that the global tilapia market could soon be worth up to USD 14.5 billion, compared to a maximum of USD 25 billion for shrimp. Mr. Tien emphasized the need for Vietnam to elevate tilapia into a major export commodity, alongside shrimp and pangasius.

"Policies must precede product development, rather than lag behind. In developing the tilapia sector, frozen products should be the centerpiece, while deep processing, quality assurance, and product diversification must be strengthened," Mr. Tien proposed.

"In developing the tilapia sector, we must avoid past mistakes where production was disorganized, leading to internal competition and damaging the image of our products. Tilapia has clear competitive advantages, and it is crucial that all stakeholders join hands from the outset," said Mr. Tran Dinh Luan, Director General of the Directorate of Fisheries.

VASEP experts also concurred, stating that Vietnam benefits from ideal climatic and water conditions for tilapia farming and has accumulated significant expertise in aquaculture and seafood exports, particularly with pangasius. The development of hatchery centers and technical training programs has ensured the availability of high-quality fry and advanced farming techniques. An Giang province has now emerged as a hub for tilapia farming for export, supported by the An Giang Aquaculture Seed Center.

However, VASEP noted that tilapia production in Vietnam remains fragmented, with weak linkages between breeding, farming, processing, and marketing stages. This fragmentation poses challenges for quality control and brand building for Vietnamese tilapia.

Moreover, the application of standards such as VietGAP in tilapia farming is still limited, making it difficult to ensure product quality and food safety, thereby affecting international competitiveness.

"Vietnamese enterprises must invest in technology, quality management, and regulatory compliance to meet international standards. Additionally, facing trade defense measures such as anti-dumping duties and technical barriers could impact Vietnam's tilapia competitiveness in the U.S. market. Enterprises should closely monitor trade policies and develop appropriate response strategies," VASEP experts recommended.

Mr. Tran Dinh Luan, Director General of the Directorate of Fisheries, reported that in 2024, Vietnam’s tilapia farming area reached 30,000 hectares, yielding 300,000 metric tons of harvest. The production of tilapia and red tilapia fry amounted to 1.09 billion units.

Mr. Luan stressed the importance of early coordination among industry associations, localities, and enterprises to establish linkages, build branding, and secure market access from the outset across the entire value chain.

"We hope this seminar will become an annual forum. From now on, we must seriously consider building a Vietnamese tilapia brand. We must establish standards and branding to enhance competitiveness, drawing lessons from past experiences. Today marks the starting point for building a strong, competitive tilapia brand by reducing costs, improving quality, and achieving recognized standards," Mr. Tran Dinh Luan emphasized.

Source: VnEconomy