Vietnam has emerged as one of the top trading partners for fishmeal and fish oil businesses given its rising domestic demand and increased export capacity, company and industry officials said this week.
The Southeast Asia nation became one of the largest importers of fishmeal in Asia last year with the purchase of 200,000 metric tons (MT).
It is also a major exporter, with the export volume reaching 150,000 MT in 2020, which accounted for half of its production. The export volume is expected to increase to 180,000 MT this year (from its output of about 301,000 MT) and to 190,000 MT in 2022 (from the estimated production of 298,000 MT), Japanese Kanematsu Vietnam’s sub-manager Nguyen Nam Hai told an industry webinar held by The Marine Ingredients Organization (IFFO) on 14 July.
China is the biggest destination for fishmeal from Vietnam, accounting for 79 percent of the latter’s total export volume in the first five months of this year, down slightly from 80 percent in the entire 2020. Pangasius fishmeal is Chinese buyers’ favorite item due to its freshness, stable supply, and sustainability and traceability – along with ease of transport from Vietnam to China.
According to Tongwei Vietnam’s purchase manager Vinh Binh Hau, Vietnam has maintained its production of fishmeal at nearly 310,000 MT per year since 2014. Its pangasius fishmeal production accounts for around half of the total output, at between 150,000 MT and 170,000 MT per year.
Hai said exports of fishmeal to China are stable and are not affected by climate change or the COVID-19 pandemic. But its prices are affected by the foreign exchange market.
Data showed that domestic consumption of fishmeal is on the rise in Vietnam, Hau said, but the ongoing fourth outbreak of the coronavirus is likely to hurt demand of fishmeal in the country.
On the fish oil front, Vietnam imported 17,000 MT of fish oil last year, mainly from Chilean and Norwegian salmon fish oil suppliers. The import volume is expected to remain flat this year and rise to 18,000 MT in 2022, according to Kanematsu’s Hai.
Vietnam also exported 83,000 MT of fish oil, mainly pangasius fish oil, from its production of 167,000 MT in 2020, with Singapore being the largest buyer. The country is likely to keep the export volume unchanged at 84,000 MT in both 2021 and 2022.
“IFFO recognizes Vietnam’s key role in the global marine ingredients and aquaculture industries and we look forward to continuing our work in this region following these fascinating discussions,” IFFO’s China director Maggie Xu said.
Photo courtesy of Doidam 10/Shutterstock
