Reducing Losses to Enhance the Competitiveness of Vietnam’s Pangasius Industry

At the workshop, delegates agreed that pangasius remains one of Vietnam’s key aquaculture sectors, particularly in the Mekong Delta. Beyond its significant contribution to exports and job creation for hundreds of thousands of households, the industry also plays an important role in the Mekong region’s food system.

However, despite its growth achievements, the sector is facing numerous challenges, including climate change, increasing production costs, international market requirements, traceability standards, disease outbreaks, and green development pressures. Notably, food losses and waste throughout the value chain are affecting production efficiency and the industry’s competitiveness.

According to Associate Professor Dr. Vo Tat Thang, Director General of the Institute of Policy and Strategy for Agriculture and Rural Development, losses in the pangasius sector are not limited to physical product losses but also include wasted resources such as feed, fingerlings, labor, and water. If these losses can be reduced, the industry will improve economic efficiency, enhance livelihoods, and lessen environmental pressures.

The project, titled “Food Loss Assessment in the Pangasius Value Chain in the Mekong River Region,” has been implemented over three years, from April 1, 2023, to June 30, 2026, with funding from the Australian Centre for International Agricultural Research (ACIAR) and the International Development Research Centre (IDRC) of Canada. The project involves research institutions, government agencies, businesses, and stakeholders throughout the pangasius value chain.

According to M.Sc. Trinh Thi Lan, lecturer at the Department of Aquaculture, An Giang University and Deputy Project Coordinator in Vietnam, the project surveyed key stakeholders in the pangasius value chain across An Giang and Vinh Long provinces to assess current levels of food loss and forecast future trends.

Research findings indicate that losses occur at almost every stage of the production chain, including hatcheries, nursery operations, grow-out farming, harvesting, transportation, processing, and distribution.

M.Sc. Vo Van Oc of An Giang University noted that technical efficiency in pangasius production remains relatively low, with food losses estimated at around 30–50%. Key causes include unstable fingerling quality, environmental fluctuations in farming areas, and inconsistent technical management practices. In some cases, mortality rates may exceed 80%, causing significant economic losses for farmers.

Additionally, bacterial diseases continue to pose major risks, especially as rising input costs coincide with unstable productivity and output quality.

Experts identified processing as the biggest bottleneck in the value chain. Producing 1 kilogram of pangasius fillet requires approximately 2.8 kilograms of raw fish, meaning that skins, bones, heads, fat, and other by-products account for around 65% of total weight if not further processed.

Research also shows that the industry wastes roughly 50% of its by-products annually, equivalent to approximately 276,000 tons of untreated organic matter. This occurs because the industry has traditionally focused on volume growth rather than value creation.

According to Nguyen Van Nguyen, Director of APOTEC Center under the Research Institute for Aquaculture No. 2, Vietnam’s pangasius farming area reached approximately 5,500 hectares in 2025, with production of about 1.74 million tons and export turnover of nearly USD 2.2 billion. Along with this growth, the industry generates an estimated 700,000–900,000 tons of by-products annually.

Nguyen emphasized that if efficiently utilized, by-products such as heads, bones, skin, fat, internal organs, and trimmings could provide raw materials for the food, cosmetics, pharmaceutical, animal feed, and agricultural sectors. This approach aligns with the principles of the circular economy and green development in today’s seafood industry.

At the workshop, participants discussed and proposed five key solutions to reduce losses across the pangasius value chain. Priority should be given to improving fingerling quality, managing broodstock, strengthening biosafety, and enhancing disease control to reduce losses from the production stage.

Experts also recommended standardizing technical procedures across hatchery, nursery, grow-out farming, harvesting, grading, transportation, and storage activities to minimize losses during production. At the same time, stronger linkages among businesses, farmers, government agencies, and supporting organizations were identified as critical to improving overall chain efficiency.

Many participants suggested that the pangasius industry should shift from competing primarily on low costs toward creating higher value through by-product utilization, traceability, brand development, and expansion into premium market segments.

Delegates also highlighted the importance of human resources in industry development. Improving the capabilities of farmers, businesses, management agencies, and researchers will be essential to ensuring the long-term sustainability of technical solutions.

Nguyen Hoang Huy, Deputy Director of the An Giang Fisheries and Fisheries Surveillance Sub-Department, emphasized that pangasius has been identified as a strategic industry under An Giang Province’s development orientation through 2045. Findings from the project will provide an important scientific basis for policymakers and businesses to apply in future production practices.