Pangasius exports fell by 4.1%

News 17:05 08/10/2019
(seafood.vasep.com.vn) The export value of Vietnamese pangasius from March to June 2019 declined from 6% to 17.6% compared to the same period in 2018. By the end of June 2019, the total export value of pangasius reached US$961.6 million, decreased 4.1% compared to the first half of 2018. Exports to the US, Brazil and Colombia markets reduced, thus affecting the overall growth rate. It is forecasted that in the third quater, pangasius exports might grow again, however, the growth rate might not exceed 15% compared to the same period in 2018.

China - Hong Kong: In the first 6 months of 2019, pangasius exports to China - Hong Kong market tended to grow much slower than previous years. As of the end of June/2019, the total export value of pangasius to this market reached 254.3 million, up 1.2%, accounting for 26.4% of the total export value of pangasius. This shows that the export trend in the first half of this year, most of Vietnamese pangasius is still exported to China - Hong Kong market after falling exports to the US market.

The EU: The drop in pangasius exports to the US market in early 2019 actually increased the pressure on the main markets. In particular, export enterprises increased export to EU market. In the first half of 2019, the export value of pangasius to EU reached US$138.5 million, up 18% and accounting for 14.4% of total export value of pangasius. In which, export value to 4 single markets: Netherlands, the UK, Germany and Belgium increased by 0.7%, 46%; 51.3% and 35.2% respectively, compared to the same period in 2018. So far, most of enterprises has exported frozen fillet pangasius products to the EU so the average export price was not high. The Netherlands was the only market developed with the most value-added pangasius products in the region. It is forecasted that, in the third quarter of 2019, pangasius exports to EU continues to maintain the same growth rate as the first two quarters of the year.

There is an advantage with Vietnamese pangasius in the EU that after EVFTA comes into effect, pangasius exports will have more opportunities to push into this market. Two main pangasius products (fresh, chilled pangasius - HS 030432) shall be reduced tax rate from 9% to 0% after 3 years; Frozen fillet pangasius (HS 030462) will fall tax from 5.5% to 0% after 3 years of EVFTA's effect. Products of frozen pangasius (HS 030324) will be eliminated tax rate in 3 years from the current level of 8%.

The US:  By the end of June 2019, the total export value of pangasius to the US market reached  US$ 141.9 million, down 27.9% compared to the same period last year. Particularly in June 2019, the export value of pangasius to this slid sharply by 40.8%. The impact of the dumping tax increase in the 14th administrative review period (POR14) has significantly affected the export of Vietnamese pangasius to this market. In April 2019, the US Department of Commerce (DOC) announced the final results of the 14th administrative review (POR14) for Vietnamese Pangasius shipments imported into the US in the period from August 1, 2016 to July 31, 2017. This final tax rate is much higher than the preliminary result published in September 2018.

ASEAN: In the first 6 months of 2019, the total export value of pangasius to this market reached US$100.8 million, up 7.9% compared to the same period in 2018. In particular, export value to Thailand increased by 9.7%; Philippines fell by 11.8% and Malaysia went up by 33.4% over the same period last year. ASEAN is being evaluated as a market that needs to be paid attention to Vietnamese pangasius enterprises in the coming time. It is expected that, in third quater of 2019, export value of pangasius to this market continues to be positive.

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