Pangasius Still Not Overcome Obstacles Yet

Difficulties have been staying for many years although there was a slight growth in the first time, the way ahead of pangasius still has many challenges.

According to the statistic of Vietnam customs, the turnover of pangasius from 1st January to 15th February achieved US$ 159,688 million, increasing by 5.6% compared to the same period in 2020. The main ten export markets include the US, CPTPP, the EU, China, Brazil, Colombia, Thailand, UAE, the UK and Russia.

In which, export to the US market achieved US$ 37,718 million, accounting for 23.62%, increasing by 44% compared to the same period in 2020; CPTPP got US$ 29,082 million, accounting for 18.21%, increasing by 10.5%, the EU gained US$ 14.04 million, accounting for 8.9%, decreasing by 16.7%; China was US$ 13,556 million, accounting for 8.49%, decreasing by 38.6%.

Pangasius exports gradually adapt to new business conditions

Mr. Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), said that pangasius exports in the first two months of this year reached US$214 million, increasing by 1.7% over the same period of last year despite many challenges.

Pangasius exports recovered after many months of declining shows that importers and businesses are gradually adapting to the epidemic situation. Besides, the enterprises promote export to markets with FTAs to enjoy tax incentives, increase competitiveness and expand exports to new markets also partly helps pangasius turnover be recovered.

However, there are still many difficulties ahead, such as the ongoing local supply shortage, or the unpredictable general situation due to uncertain influencing factors. In order to solve the challenges, VASEP recommends the pangasius businesses to focus on developing traditional markets such as the US, the EU, China, ASEAN and look for new markets like India.

VASEP will also cooperate with relevant agencies to continue promoting propaganda and intensive dissemination of C/O in international commitments that Vietnam is a member; spreading knowledge of FTAs, especially CPTPP, EVFTA… to help businesses access deeply and take advantage of incentives in export activities.

To limit the risks and impact from the decline of export markets, the enterprises shall promote domestic consumption channels through connecting systems of the restaurant, resort, cafeteria, industrial park, army, etc. in associated with the establishment of brand and management of quality, ensure traceability. In a long run, the development of domestic market not only helps businesses to sell products but also contributes to building the brand of Vietnamese pangasius products. By this, it helps the pangasius industry to develop more sustainably,” said Mr.Hoe.

Pangasius export to the UK increased by 15.6%

Regarding VASEP’s statistic, from January 1st to February 15th, 2021, the total value of pangasius export to the UK achieved US$ 3.89 million, increasing by 15.6% compared to the same period in 2020. Pangasius export in the next months is expected to get double-digit positive growth over last year. In 2020, the value of pangasius export to the UK had the most positive growth in the total of Vietnam’s pangasius export. In which, it was US$ 8.18 million in July, 2020, increasing by 113.8% over the previous year and nearly the same as pangasius export value to the EU (US$ 9.67 million).

Import of pangasius products of the UK in 2020

Pangasius HS 0304 (except for grilled fish and surimi 70% Other processed grilled fish (belongs to code 16) 28%
Alive/fresh/frozen/dried pangasius (code 03)(except for fish belongs to code 0304) 2%

 

The structure of pangasius exports to the UK is also very diverse. Notably, the export value of processed pangasius products reached over US$18 million, increasing by nearly 9.5 times compared to 2019. The export value of fresh, dried and frozen pangasius products (except HS 0304) also increased by 56.7% over last year. The group of frozen pangasius fillets (HS 0304) exported to the UK decreased slightly by 3.3%.

Some of the processed pangasius products that Vietnamese enterprises export to the UK market in 2020, such as Pan-fried pangasius, pre-fried pangasius fillets, and breaded pan-fried pangasius fillets. frozen pre-fried, frozen whole pangasius with offal, frozen pangasius, frozen whole pangasius, frozen cut fish fillet, frozen pangasius fillet, frozen pangasius stomach.

Currently, there are more than 40 pangasius enterprises that participate in exporting pangasius to the UK market in the past year, of which the three companies have the highest export value to this market are Vinh Hoan Corp, Van Duc TG Food and AGIFISH.

List of the 15 largest pangasius exporters to the UK in 2020

No.

Name of Company

1

Vinh Hoan Corp

2

Van Duc Food Processing Co., Ltd _ Tien Giang

3

An Giang Fisheries Import Export JSC.

4

NTSF Seafood JSC

5

Dai Thanh Co., Ltd

6

Hung Ca Co., Ltd

7

Nam Viet JSC

8

Van Y JSC

9

Ngoc Ha Food Processing Co., Ltd

10

International Development & Investment Corporation (IDI)

11

Song Tien Seafood JSC

12

Bien Dong Seafood Co., Ltd

13

An Do Duong Co., Ltd

14

Can Tho Fisheries Import Export JSC.

15

Truong Phat Seafood JSC

 

Apart from pangasius products, the tax on most raw shrimp imported into the UK will be reduced from 10-20% to 0% right after UKVFTA takes effect. For fruit products, the Agreement affects more than 94% of the total 547 tax lines for fruits and vegetables and fruit and vegetable products with a tax rate of 0%.

The European-American Market Department said that, along with many positive signs of Vietnam’s trade exchanges with the EU countries in the first month of 2021, the import and export of the UK continued to show the positive effects under EVFTA in the post-Brexit transition period.

“With commitments to cut tax rates up to 99%, the UKVFTA is expected to maintain the breakthrough trade growth between Vietnam and the UK in the coming years”.

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