Potential and opportunities for Vietnam’s seafood exports to Brazil

Brazil, with a population exceeding 200 million and an average seafood consumption of 12 kg per person annually, is emerging as a highly potential market for Vietnamese seafood. In 2024, Vietnam became Brazil’s second-largest seafood supplier, accounting for 17% of total import volume and 9% of value share, with exports reaching nearly $130 million, up 14% from 2023. This achievement, largely driven by pangasius, opens numerous opportunities for Vietnam to strengthen its position and diversify products in this promising South American market. This article analyzes the potential, opportunities, and challenges of exporting seafood to Brazil.

Brazil’s market: Strong demand, domestic supply shortages

Brazil is the second-largest aquaculture producer in Latin America, with an annual output of approximately 900,000 tons, of which tilapia accounts for 65%. However, its domestic seafood industry cannot meet diverse consumption needs, particularly for products like salmon, cod, shrimp, and white fish. Marine and inland fisheries produce about 1.5 million tons annually, but overexploitation has led to declining natural supply. Consequently, Brazil imports $1.4–1.5 billion worth of seafood each year, mainly high-value products from Chile (salmon) and Vietnam (pangasius).

Seafood demand in Brazil is driven by culinary preferences, especially in coastal areas and major cities like São Paulo and Rio de Janeiro. With a consumption rate of 12 kg per person per year—higher than the U.S. but lower than Japan—the market offers significant growth potential. Brazil’s economy is projected to grow by 2.2% in GDP, supporting seafood imports, particularly for high-value and convenient products.

Vietnam has effectively capitalized on this gap. In 2024, pangasius accounted for nearly 100% of Vietnam’s seafood exports to Brazil, reaching $129.3 million, a 14.5% increase from 2023. Vietnam leads the white fish segment with a 38% market share, far ahead of competitors like Argentina and Norway. Forecasts for Q1 2025 indicate exports will reach $48.2 million, up 72.8% year-on-year, signaling robust growth potential.

Opportunities for Vietnamese Seafood

Competitive pricing and processed products

Vietnamese pangasius, with its low cost and stable quality, is ideal for Brazil’s middle- and lower-income segments. Beyond frozen pangasius fillets, value-added products like fish cakes, fish balls, and peeled IQF shrimp can meet the demand for convenience in urban supermarkets and restaurants. Compared to premium products from Chile or the EU, Vietnamese seafood offers a price advantage, enabling market share expansion as Brazil prioritizes affordable imports.

Relaxed import standards

Previously, Brazil’s strict standards on additives and phosphates posed challenges for Vietnamese pangasius. Brazil’s consideration of aligning with international norms reduces compliance costs and facilitates exports of deeply processed products like breaded pangasius. This diversifies product offerings and boosts export value.

Bilateral trade cooperation

Vietnam and Brazil aim to increase bilateral trade to $10 billion by 2025 and $15 billion by 2030. As Vietnam’s largest trade partner in South America, Brazil offers opportunities for seafood businesses to expand market share. Negotiations with MERCOSUR, of which Brazil is a member, could lead to tax incentives, enhancing Vietnam’s competitiveness against India and Thailand.

Market diversification

Amid geopolitical risks and high tariffs in the U.S. and China, Brazil is a strategic destination for Vietnam to reduce reliance on traditional markets. With 26 companies, including Hung Ca, Cadovimex, Nam Viet, and Hoang Long, operating in Brazil, Vietnam has a solid foundation to deepen market penetration.

Challenges

Seafood exports to Brazil face several hurdles. A ban on importing whole frozen shrimp limits product diversification. Since February 14, 2024, Brazil has suspended tilapia imports due to concerns over the TiLV virus, and potential expanded controls on pangasius warrant caution. Complex administrative procedures and competition from India, Ecuador, and Indonesia require Vietnamese firms to improve quality and meet sustainability certifications like ASC and BAP.

Recommendations for Businesses

To maximize opportunities in Brazil, Vietnamese companies should:

• Monitor import regulations, particularly on phosphates and quarantine, to adapt products accordingly.
• Invest in deep processing, developing value-added products like seasoned pangasius and fish cakes for the convenience segment.
• Engage in trade promotion, leveraging trade fairs and support from Vietnam’s Trade Office to build brand presence.
• Ensure sustainability certifications, meeting Brazil’s stringent requirements for traceability and environmental standards.

Brazil is a strategic market for Vietnam to expand seafood exports, particularly pangasius and processed products. With competitive pricing, bilateral cooperation, and stable import demand, Vietnam has opportunities to strengthen its position and diversify markets amid global uncertainties. However, overcoming technical barriers and enhancing product quality will be key for Vietnamese businesses to conquer this promising South American market.