Vietnam’s pangasius exports continued to decrease in May 2023

The fluctuations of the world such as war, high global inflation have caused Vietnam's pangasius exports from the beginning of the year until now to continuously decline. Vietnam pangasius export turnover in May 2023 reached 160 million USD, down 36% compared to May 2022. Accumulated pangasius exports in the first 5 months of 2023 reached USD 730 million, down 40% compared to the same period last year.

By the end of May 2023, China and Hong Kong continued to be the largest import market for Vietnamese pangasius, with a value of US$233 million, down 37% compared to the same period last year. China is still the largest single market for pangasius, with a value of 217 million USD.

Standing in second place is the US market with 118 million USD in the first 5 months of 2023, down 62% compared to the same period in 2022. In May 2023 alone,  exports to this market also fell 53% and only reached 32 million USD. Pangasius exports to the US tend to decrease from the last quarter of 2022 and continue to decline in the first 5 months of this year due to the large inventory.

Ranked in third place is the CPTPP market with a total import value of 94 million USD, down 36%. Mexico continues to be the leading market in the bloc in importing pangasius from Vietnam with an export turnover of 26 million USD, down 50% compared to the same period in 2022. Next is Singapore, Canada, and Japan. While most of the markets in the bloc reduced imports of Vietnamese pangasius, only Singapore recorded a positive growth of 16% with a value of 15 million USD.

By the end of May 2023, pangasius exports to the EU market reached US$77 million, down 13% over the same period last year. Many markets in the bloc fell from 23% to 30%, except for Germany, which still recorded high growth with 67%. Despite high inflation, consumers in this market are more interested in frozen products to save costs. Many key markets in the EU reduced imports of Vietnamese pangasius, including the Netherlands by 27%, Belgium by 24%, Spain by 31%, etc.

Besides the EU, Vietnam's pangasius export turnover to some other main markets also decreased, such as: to Brazil down 24%, to Thailand down 48%, to Colombia down 30%. Among Vietnamese pangasius import markets, pangasius exports to the UK and Saudi Arabia were positive with growth of 8% and 50%, respectively. Germany and the UK are the two countries with the highest inflation rates, but these markets still recorded positive growth.

Exports of all Vietnamese pangasius products decreased. Exports of frozen pangasius fillets/cuts (HS code 0304) reached 603 million USD in the first 5 months of this year, down 44%; Export of fresh/frozen/dried pangasius (HS code 03) reached 115 million USD, down 7%; Export of processed pangasius (HS code 16) reached 11 million, down 31%.

The continuous Russia-Ukraine war, prolonged global inflation and inventories have significantly affected Vietnam's pangasius exports to markets during the first 5 months of 2023. Pangasius production and export are suffering from high input costs, along with tight credit and high interest rates, making it difficult for businesses to source capital.

When businesses reduce sales, feed mills and breeders also reduce production output. Therefore, interrelated parties need to closely cooperate with enterprises.  Pangasius exporters also expect the Government and ministries to have timely support policies on support packages, reduce interest rates for businesses to help businesses survive this difficult period.

Compiled by Thuy Linh