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.