Positive signs of Vietnam's shrimp and pangasius exports

Pangasius exports are growing substantially in most major markets, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). The total export value of pangasius increased by 93.6% in the first two months of this year, to 384.8 million USD. Pangasius exports to the US reached 94.57 million USD at the end of February, up 119.7%. Following the US Department of Commerce (DOC) announcement of the preliminary results of the 17th review, as well as the latest outcome of the POR17 anti-dumping duty on frozen pangasius fillets imported from Vietnam, more Vietnamese pangasius exporters now enjoy a 0% tax rate in the US market. As a result, the value of pangasius exported to this market is expected to rise in upcoming months.

After exports of pangasius to the EU fell for the second year in a row, many Vietnamese businesses withdrew from the market. Pangasius exports to EU had recorded sharp decline during a period of time before the Covid-19 pandemic reached the area. However, in the first two months of this year, exports of pangasius to the EU increased by roughly 76% to 28 million USD.

According to Mr. Do Lap Nghiep, Chairman of the Board of Directors of Nam Viet Group (Navico), the high price of pangasius is a positive sign for both farmers and processors. "I believe that fish prices will remain high till the end of the year," says Mr. Nghiep. As a lot of farmers return to the market, fish prices may vary slightly next year. However, feed prices are being pushed higher by increased feed component costs, hence it is difficult for fish prices to decrease. Market fluctuations may cause problems for small farmers, but Navico has a closed production chain from feed production, large farming areas to professional fish processing plant that also utilizes fish waste, which will provide the company with significant competitive advantages.

However, Mr. Nghiep also stated that pangasius exports to the Russian and Chinese markets currently has bottlenecks. "The conflict between Russia and Ukraine is having a significant impact on the Russian market, meanwhile, China is implementing the "Zero Covid" policy, hindering exports to this market. However, Navico is still able to export between 7,000 and 8,000 tons of finished fish products per month thanks to their cooperation with numerous countries across the world. Furthermore, the current increase in world gasoline prices makes transportation fees continuously increase. It's also a challenge that many export enterpriseswill encounter for a long period of time.

The reason for the sharp increase in pangasius prices, according to farming households and pangasius exporting enterprises, is that following the Covid-19 pandemic, many households halt producing leading to the shortage of raw fish supply. As a result, demand for pangasius surpasses supply.

According to Mr. Nguyen Thanh Binh, Director of Chau Thanh Seafood Service Production Cooperative (Dong Thap), the current pangasius price is keeping high, fish farmers therefore have higher profits than before Tet and also higher as compared to the corresponding period last year. The price of petrol and animal feed is expected to rise in the near future, so the price of pangasius will continue to increase as well.

Shrimp exports are expected to reach 4 billion USD

In Ca Mau provine, seafood export turnover in the first months of 2022 reached 165 million USD, up 101% over the same period. Shrimp exports of Bac Lieu province exceeded 113 million USD, up more than 6% over the same period in 2021.

The main export product is whiteleg shrimp in the Mekong Delta with stable price maintaining at a high level. Currently, whiteleg shrimp of 100 pieces/kg is priced at 100,000 VND; 50 pieces/kg at 132,000 VND and 30 pieces/kg at 158,000 VND.

VASEP also stated that in the first two months of this year, Vietnam's shrimp exports increased significantly in all major markets, including the US, EU, Japan, Korea, China, and the UK... US remained the largest shrimpt importing partner of Vietnam, accounting for 21% of the total shrimp export value. After Covid-19, the US market reopened, and demand for seafood imports, especially shrimp, increased. Vietnam is still the 4th largest shrimp supplier in the US market - after India, Ecuador and Indonesia.

Shrimp exports to China also showed signs of recovery, reaching 39.7 million USD (up 14%). In 2022, it is forecasted that China's shrimp imports will continue the uptrend, however this market is very strict. VASEP noted that firms exporting to China need to ensure the control and prevention of the Covid-19 pandemic during the producing and exporting process.

It is forecasted that shrimp exports will continue to grow significantly in March thanks to high market demand. Full year exports are expected to reach about 4 billion USD, up 3%. The Russia-Ukraine war has more or less impacted shrimp exports to Russia and Ukraine, despite the fact that these two markets only account for a tiny percentage of Vietnam's total shrimp exports. However, this conflict raises fuel prices and a slew of other input expenses, affecting prices and profits of processing and exporting companies.

Compiled by Khanh Linh