Pangasius processing line at Aquatex Ben Tre - Member of Pan Group. Photo: TL

Identifying competitors?

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnamese pangasius has great potential to compete in the international market. However, to be successful, the pangasius industry needs to proactively "deepen" the market, improve product quality and build brands, diversify markets.

According to data from Vietnam Customs, as of July 15, 2024, Vietnamese pangasius exports reached more than 1 billion USD, an increase of 6% year on year.

The largest markets consuming Vietnamese pangasius include China, the US, the EU and countries belonging to the CPTPP. However, Vietnamese pangasius is facing strong competition from other types of whitefish.

Among them, cod is considered the "king" of fish because of high brand value, good meat quality, abundant nutritional value, rich in protein, vitamins and minerals, meeting high nutritional needs, which makes this species being favoured in the cuisine of many countries. However, high prices due to seasonality and limited supply are major barriers.

Second in popularity in China after pollock, but in the US, cod is the most consumed white fish, especially frozen cod fillets with HS code 030471.

So whom is Vietnamese pangasius competing against to gain market share?

According to VASEP, it is pollock, which can be a good alternative to cod with a sweet taste, low fat and a more affordable and stable price than other fish species.

Besides, tilapia is also rich in protein and essential amino acids and its the price is often quite competitive in the market. Tilapia, especially frozen tilapia fillets, is a popular product in the United States, second only to cod fillets.

What are the advantages of Vietnamese pangasius?

As one of the largest farmed fish in the world, Vietnamese pangasius has its own advantages, such as competitive price; large, stable output; diverse products; favorable geographical location, etc.

Specifically, Vietnamese pangasius often has a lower price than other whitefish, helping to attract many customers, especially in emerging markets. In terms of output, Vietnam is one of the largest pangasius producing countries in the world, ensuring a stable supply for the market.

Pangasius products are various to meet the needs of many customers. Besides, a favorable geographical location enables enterprises to reduce transportation costs and shorten delivery times.

However, according to economic experts, besides the above advantages, exported pangasius still has limitations. In particular, the quality of pangasius products is still uneven, depending on many factors such as breed, feed, farming environment; facing many trade barriers such as import tax, technical regulations, etc.;

Along with that, unfair competition activities such as dumping and trade fraud can affect the reputation of Vietnamese pangasius in the international market. On the other hand, the change in policies of markets while the production cost of pangasius is increasing due to the increase in input material prices and labor costs, also affects pangasius exports.

In addition, Vietnamese pangasius also faces competition from other catfish producing countries such as India, Bangladesh, and Indonesia, whose advantages such raw material sources and production costs are putting considerable pressure on the Vietnamese pangasius industry.

According to the International Trade Center (ITC), Vietnam is the second largest supplier in the race to export whitefish to China, after Russia. In the first half of this year, China imported nearly 80 thousand tons of white fish (mainly pangasius) from Vietnam, down 17% compared to the same period in 2023.

Meanwhile, imports from these markets recorded 45 thousand tons from the US, up 57%; Norway reached 19 thousand tons, up 28%; Greenland reached nearly 5 thousand tons, up 188%; the Netherlands reached more than 5 million USD, up 179%; Korea reached more than 2 million USD, up 237%...

According to the International Trade Center (ITC), Vietnam is the second largest supplier in the race to export whitefish to China, after Russia. In the first half of this year, China imported nearly 80 thousand tons of whitefish (mainly pangasius) from Vietnam, down 17% compared to the same period in 2023. Meanwhile, imports from the US reached 45 thousand tons, up 57%; Norway reached 19 thousand tons, up 28%; from Greenland reached nearly 5 thousand tons, up 188%; from the Netherlands reached more than 5 million USD, up 179%; from Korea reached more than 2 million USD, up 237%,...

Futhermore, Vietnam is the second largest supplier of whitefish (mainly pangasius) to the US, after China. In the first 5 months of this year, the US imported more than 45 thousand tons of white fish (mainly pangasius) from Vietnam, an increase of 37%, accounting for 30% of the total white fish imports of the US from the world. According to VASEP's analysis, each type of fish has its own advantages and disadvantages. Vietnamese pangasius has advantages in terms of price and output, but needs to improve quality, build brands and diversify products to compete more effectively.

To overcome competitors, Vietnamese pangasius needs to focus on improving product quality: ensuring food safety and hygiene, applying international standards; building brands: creating a positive image for Vietnamese pangasius in the international market.

At the same time, businesses need to diversify markets. In particular, finding new markets, especially high-end markets; developing value-added products. Processing pangasius into products of higher value; Investing in technology, applying modern technologies to the production, processing and preservation of pangasius; focusing on sustainable development, protecting the environment and ensuring workers' welfare.