Pangasius exports plunge in many markets

Pangasius export turnover in September 2019 continued to plunge in many major markets.

Processing Pangasius for export

According to the Vietnam Association of Seafood Exporters & Producers (VASEP), by the end of September 2019, the total export value of Pangasius reached US$1.46 billion, down 8.5 percent compared to 2018. Particularly, in September 2019, Pangasius export value continued to decline by 14.6 percent, of which, export value to many major export markets such as the US, EU, Brazil, Mexico, and Colombia also dropped sharply.

Until the end of September 2019, China - Hong Kong was a major market for Vietnamese pangasius exporters. This market accounts for an increasingly large proportion in Vietnam's pangasius export structure.

Over the past nine months, the value of exports to China - Hong Kong accounted for 30.9 percent of the total value of pangasius exports, reaching US$450.7 million, up 19.6 percent compared to the first nine months of 2018.

The export value to China - Hong Kong market is double that to the US – the second largest fish export market. Currently, China is the most diversified import market for many types of pangasius of Vietnam, including frozen pangasiusfillet, chunk pangasiusfillet, frozen whole pangasius butterfly, frozen whole pangasius, Pangasius belly, Pangasius stomach, and frozen pangasiusfillet with spices.

By the end of September 2019, the total export value of pangasius to the US market reached US$208.3 million, accounting for 14.3 percent of total pangasius export value, down 43.6 percent compared to 2018. This is a large and noticeable decline in the US in the past five years. It is forecasted that Pangasius export to the US in the fourth quarter will continue to decrease.

The exports of pangasius to the EU market in the first nine months of this year increased by 7.3 percent compared to 2018, reaching US$189.3 million. Ofwhich,the three largest single export markets are the Netherlands down 1.9 percent; Englandup 23.8 percent; and Germany up 32.5 percent.

After the positive growth in the first of the year, Pangasius export value to ASEAN market has slowed down. As of the end of September 2019, the export value to this market reached US$147.5 million, increasing by 1.4 percent compared to 2018. In particular, the export value to Thailand and Malaysia market still has many positive signs.

By the end of September 2019, Pangasius export value to three potential markets Mexico, Brazil and Colombia have declined since the beginning of the year. It is forecasted that from now until the end of the year, export value to these markets will still be negative compared to 2018.

Recently, according to the preliminary decision of the 15th anti-dumping tax review on Vietnamese pangasius products, the US Department of Commerce (DOC) announced that preliminary tax rates for mandatory and voluntary defendants is US$ 0/kg; The national tax rate is US$ 2.39/kg. This tax rate is much lower than the final result of the previous review at US$ 1.37 - 2.39/kg. This is a positive signal for pangasius exporters to the US market.