Pangasius exports to Russia fluctuated in 2022. VASEP graphics

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), pangasius is the main seafood product exported to Russia. However, in the first two months of 2023, Russia was among many markets that witnessed negative growth in Vietnamese pangasius imports due to the impact of inflation and a decrease in consumption.

Following the trend, only a few markets kept positive growth in pangasius imports from Vietnam, such as Germany, Saudi Arabia, and the UK, while most of the other major markets decreased, including Russia.

In February 2023, pangasius exports to the Russian market reached nearly US $ two million, down 40% compared to the same period in 2022 and accounted for 1% of the total value of Vietnamese pangasius to markets.

In the first two months of 2023, Vietnam's pangasius to the Russian market reached nearly US $ 2.5 million, down 53% compared to the same period in 2022 and accounted for 1.4% of the total value of Vietnamese pangasius exports to markets. On the other hand, the proportion of the Russian market in the first two months of this year increased higher than last year's (only 1%). Although pangasius export sales to Russia decreased in the first two months of the year, in the context of inflation, with demand and import prices both falling, this is a positive sign.

According to an analysis by VASEP, the Russia-Ukraine conflict since the end of February 2022 has greatly affected world trade, including Vietnam, causing traffic congestion and difficult trade payments. Although the proportion of Vietnam's seafood exports to these two countries is not large, the escalating tension also creates chain consequences, affecting the seafood exports of the countries. Therefore, in March and April 2022, Vietnam's seafood exports to Russia stagnated, decreasing by 86% and 46%, respectively.

However, if the time of the Russia-Ukraine war occurred, Russia was embargoed, Vietnam's goods exported to Russia were delayed for three months, some orders had to be returned, and businesses had to handle inventory or look to export to other markets more than a year after the war between Russia and Ukraine, Vietnamese pangasius to the Russian market is showing positive signs of recovery. Since the end of 2022, Russia has accelerated the import of Vietnamese pangasius.

In the context of inflation, the Russian market is not affected as much as Western countries. Russia is boosting seafood trade with other countries, including China, India and Bangladesh. Vietnamese seafood more or less also has to compete with other countries, especially China, in the Russian market. The Russian economy will depend more on China because of the common border. However, with Pangasius, Vietnam is the number one supplier in Russia.

The volume of pangasius exported to Russia is forecast to increase slightly in the following months. However, according to the general trend, the price of pangasius to this market will decrease compared to 2022. Moreover, Russia's food price inflation is cooling down month by month, reducing the price of seafood products in Russia.

According to Russian statistics, from March 13 to March 19, 2023, the prices of frozen fish products mainly decreased or stabilized. In the Far East, pollock prices fell 2.1%, equal to 95 rubles /kg, and Pacific herring 3.2%, equal to 60 rubles/kg. Prices of Pacific cod and halibut remained at the level of last week - 220 rubles and 70 rubles/kg. In the Northwest, Atlantic herring fell 3.1% to 93 rubles/kg. The price of mackerel remained unchanged - 167 rubles/kg.

In the central regions, the price of capelin fell 3.4% to 85 rubles/kg. Atlantic herring fell 1.7% to 113 rubles/kg. Pollock prices remained at the level of 118 rubles/kg last week.

With the price of seafood products tending to decrease, although pangasius exports to Russia show many positive signals, seafood enterprises still face many difficulties.