Processing pangasius for export. Photo: Cong Mao

Favorable exports

Pangasius processing enterprises for export in the Mekong Delta said that the price of raw pangasius continued to increase in a range of VND31,000-33,000/kg. This is the highest price in the past two years, pushing up the price of pangasius for export.

That is thanks to the favorable export situation. In the locality with the largest production of pangasius farming, according to the report of Dong Thap Department of Agriculture and Rural Development, in mid-April 2022, the price of raw pangasius was from VND31,000 to VND32,500/kg (an increase of VND1,000/kg compared to the previous week), the average cost to produce one kilogram of raw fish is about VND24,500, bringing high profits to farmers.

Pangasius prices increased, the demand for pangasius in many countries was positive with abundant orders pulling the average export price of frozen pangasius fillets to US$3.4/kg, an increase of US$0.25/kg compared to January 2022.

According to Ta Ha, a pangasius market expert, the picture of Vietnam's pangasius exports in the first and the following quarters of this year could be more optimistic.

“After facing difficulties due to China's 'zero Covid' policy, many pangasius shipments were always in danger of being returned if infected with coronavirus, but now the export value of pangasius to China - Hong Kong has increased again. The forecast is even more positive at least in the next quarter,” said Ha.

By the end of March 2022, the total export value of pangasius to this market reached US$183.4 million, up more than 163% over the same period last year. In March alone, the export value of pangasius to China - Hong Kong reached US$97.5 million, up 119%.

High growth in many markets

According to the assessment of businesses, pangasius exports to the US market are growing well. After the final results of the anti-dumping tax POR17 were announced, pangasius businesses that are not subject to tax are boosting exports to this market.

By the end of March 2022, the total value of pangasius exports to the US reached more than US$160 million, up 123%. Hight inflation is taking place in the US due to broken supply chains and the impact of the Ukraine crisis, prices have increased rapidly, the demand for essential products, including food and seafood has increased sharply, so it will be a good opportunity for enterprises to export frozen pangasius to this market.

The food crisis is also happening in Europe, prices skyrocketed due to supply chain bottlenecks, and booming demand, and the global energy market was heavily affected by the Russia-Ukraine conflict.

Due to the favorable export market, many businesses speed up order fulfillment. According to Vinh Hoan Seafood JSC (VHC) in January 2022, the business achieved total revenue of VND777 billion, up 23%. In which, the main product - pangasius fillet was up 11%, reaching VND489 billion and accounting for more than half of total monthly revenue.

Vinh Hoan currently has six pangasius processing factories, with a production capacity of about 1,000 tons/day, exporting to 46 countries and territories. Except for the Chinese market, which decreased by 36% to VND27 billion, most of the remaining export markets of VHC increased significantly. In which, exports to Europe increased by 20%, reaching VND131 billion - accounting for the third-largest proportion, and exports to the US increased by 25% to VND332 billion - accounting for the second largest proportion in the structure of export revenue.

It is forecast that in the second quarter of 2022, pangasius exports to major markets will see positive growth. Consumption demand increases and is stable due to competitive pangasius prices. Pangasius exports can fill the gap in some segments of white fish products (cod, pollock) that were in short supply from Russia.

Commenting on the prospects for 2022, VCBS Securities said that the seafood industry had great potential from the new FTAs such as the EVFTA and the CPTPP. The EU is Vietnam's third-largest seafood export market, after the US and Japan, accounting for more than 17-18% of Vietnam's total seafood export value, of which pangasius accounts for 11%.