August 06, 2020 14:25

Advertisement Contact us RSS Vietnamese

Fluctuations in the market, Pangasius exports struggle to reach 2.4 billion USD

18:45 | 01/11/2019

VCN - As one of the two key export items of Vietnam's seafood sector, Pangasius exports in 2019 have seen market fluctuations that make it difficult to reach the goal of 2.4 billion USD in 2019.

tin nhap 20191101103549 Pangasius exports plunge in many markets
tin nhap 20191101103549 US cuts antidumping duties on Vietnamese tra fish fillets
tin nhap 20191101103549 Pangasius industry tasted "bitter fruit" because of overheat
tin nhap 20191101103549
Processing pangasius for export Photo: ST

Decline in big markets

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), by the end of August 2019, the total export value of pangasius reached 1.3 billion USD, down 7.7% compared to the same period last year. Pangasius export value has decreased, of which, in some major export markets (USA) sharply decreased.

The prolonged US-China trade war has caused damage to the Chinese tilapia production industry in the US market, many Vietnamese pangasius export enterprises expect to increase opportunities in this market. However, contrary to the prediction, Pangasius export value to the US decreased due to trade and technical barriers still preventing export growth to this market.

If in the past, the US market was ranked first in the import of Vietnam pangasius, then in the first 9 months of 2019, pangasius export turnover to this market decreased by 40%, reaching just 221 million USD. The reason for this decrease is due to the high anti-dumping tax during the administrative review (POR14), although this market has 62 Pangasius enterprises qualified to export products to the United States.

According to VASEP, in the first 4 months of this year, Pangasius export value to the US market decreased and was lower than the export value to the EU market by 1.5 - 8 million USD. However, from May to August 2019, Pangasius export value to the US market surpassed the EU. The US returned to Vietnam's second largest pangasius export market. However, because pangasius export value to this market continuously decreased since March this year, the total pangasius export value in 9 months of 2019 still decreased by 40% compared to the same period in 2018.

With the high anti-dumping tax rate, the US market will only allow a few Vietnamese pangasius export companies to penetrate, the tax risks are still a barrier that even these businesses must actively expand to other markets. Therefore, according to VASEP, exports to the US in the second half of the year will be hard to recover.

Chinese market expectations

In contrast, Pangasius exports to China market has been positive.

Unlike the US market, the Chinese market has encountered difficulties since the early days of 2019. The reason is China tightened its border policy and increased technical measures to check product quality through food safety control measures. Many people think that China is an easy market, but through this control, it is not an easy market. Because, the advantage of this market is the import of large volumes, flexible payment, importing many different items, from pangasius fillets to cut pieces. Facing difficulties in exporting pangasius to the Chinese market, in April and May 2019, the authorities of the two countries have intensified dialogue and found measures for the Chinese to open the border and loosen its policy to export pangasius into this market smoothly. After many efforts, from June 2019 until now, Pangasius exports to China market have started to increase again.

As soon as China exempted tax for 33 seafood products from entering this market (including pangasius), the country's authorities have stepped up measures to control the quality of seafood. Specifically, export products must meet two conditions. Firstly, they must be produced at the facility named in the list of permitted export by Nafiqad. Secondly, each shipment of seafood must be accompanied by a food safety certificate issued by the Department of Agriculture, Forestry and Fisheries Processing (Nafiqad). Every 3 months, Nafiqad and the General Department of China Customs will update and notify each other periodically to review and recognize the list of seafood processing and manufacturing establishments. China will update this list on their website so that border-gate customs will base it on customs clearance. Seafood imported into China must have quarantine certificates, certificates of origin (C/O), packaging must be in Chinese and English, in accordance with Chinese packaging standards.

This year, Vietnamese pangasius export enterprises continued to export a variety of Pangasius products to the Chinese market such as frozen pangasius (HS code 030462); frozen whole Pangasius with salt (HS 030564), dried tra fish (HS code 030572); bubble of frozen pangasius (HS 030399). China and Hong Kong (China) continue to be the "focal point" of many enterprises exporting Vietnamese pangasius.

With market fluctuations, VASEP predicts that pangasius export this year will reach over 2.2 billion USD.

According to the General Department of Customs, in the first nine months of 2019, Vietnam's total seafood export turnover to China reached 831.8 million USD, up 14.2% over the same period in 2018.

tin nhap 20191101103549 Difficult to export Pangasius to America

VCN - Pangasius exports to the US in August continued to decline sharply, making this key product into ...

Recently, on the request of Vietnam, China agreed to open the market for three fishery products on the list of Vietnam's fishery products permitted to be exported to China. There is currently a total of 48 Vietnamese aquatic species that have been updated by China on the list of Vietnam's fishery products allowed to be exported to China for food; 36 species are allowed to be imported as pets and one species is for breeding.

By Le Thu/ Phuong Thao