Vietnamese pangasius: from export recovery to the need for upgrading the value chain

However, for this recovery to translate into sustainable growth, the pangasius industry must continue strengthening key foundations throughout the value chain—from seed quality and raw material supply stability to environmental risk management, processing efficiency, and by-product utilization. These are not only immediate requirements but also essential conditions for enhancing the competitiveness of Vietnamese pangasius as global markets increasingly demand higher standards of quality, traceability, and value addition.

Seed Quality: A Foundation That Needs Continued Improvement

Seed quality remains one of the most critical factors directly affecting farming performance and the competitiveness of the entire pangasius value chain.

While seed supply is relatively abundant in terms of quantity, quality remains inconsistent among hatcheries and breeding facilities. The survival rate from fry to fingerlings is still modest, and losses during the nursery stage continue to be a challenge that requires further improvement.

Improving seed quality should therefore remain a long-term priority for the industry. Healthy, uniform, and well-managed fingerlings can help farmers reduce disease risks, improve survival rates, increase productivity, and contribute to a more stable raw material supply for processing and export enterprises.

Raw Material Supply: Enhancing Stability for Long-Term Production Planning

For processors and exporters, fluctuations in raw material supply can affect production schedules, delivery commitments, and the ability to fulfill long-term contracts.

Strengthening linkages among processors, farming areas, hatcheries, and farmers remains a key solution for reducing volatility, sharing risks, and creating a more stable foundation for the entire pangasius value chain.

Deep Processing and By-products: Significant Potential for Value Creation

Beyond farming, processing and by-product utilization offer substantial opportunities to enhance the value of the pangasius industry.

Producing 1 kilogram of finished pangasius fillet typically requires about 2.8 kilograms of whole fish. The remaining portions—including heads, bones, skin, fat, trimmings, and other by-products—can become valuable raw materials for industries such as food processing, animal feed, pharmaceuticals, cosmetics, and other value-added products if utilized effectively.

In fact, several leading pangasius companies have already invested in deep processing and by-product utilization to produce fish oil, fishmeal, collagen, gelatin, and other higher-value products. This approach aligns with circular economy principles, helping businesses reduce waste, improve resource efficiency, and enhance profit margins.

However, at the industry level, by-product utilization remains uneven. A considerable portion of by-products is still not being fully exploited. With better organization and investment, this segment could become an important pillar helping Vietnamese pangasius shift from a volume-driven advantage to a value-driven advantage.

Climate Change and Disease Risks: Challenges Requiring Proactive Management

The pangasius industry in the Mekong Delta is increasingly affected by climate variability, salinity intrusion, water quality changes, and disease risks.

Due to its intensive farming characteristics, pangasius is particularly sensitive to fluctuations in temperature, water quality, and pond environmental conditions.

In this context, the industry's priority is not merely to expand production but also to strengthen farming area management, environmental monitoring, disease control, and the adoption of safer and more resource-efficient farming practices.

Proactive adaptation to climate-related challenges will help farmers reduce risks while enabling processors to maintain a stable supply and better meet sustainability requirements from importing markets.

Strengthening the Entire Value Chain to Enhance Competitiveness

The export recovery seen in the first months of 2026 is a positive signal for Vietnam’s pangasius sector. However, for growth to be driven by more than just production volume and raw material prices, the entire value chain must continue evolving toward greater stability, efficiency, and value addition.

This requires close coordination among hatcheries, farmers, processors, local authorities, and government agencies. Key priorities include improving seed quality, developing integrated farming areas, stabilizing raw material supplies, expanding deep processing, maximizing by-product utilization, and adopting circular economy models.

With a stronger and better-organized value chain, Vietnamese pangasius will be better positioned to enhance its competitiveness, maintain market share in traditional destinations, and expand into higher-value market segments worldwide.