Vietnam has seen its export value of pangasius falling in the first 10 months due to weak demand from major markets and lower material prices.
According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam exported pangasius worth USD 1.64 billion (EUR 1.49 billion) during the period between January and October, down 10 percent from the same period last year as sales to the United States, Brazil and Colombia slowed.
Sales to China (including Hong Kong), the biggest buyer in the first 10 months, rose 19.3 percent year-on-year to USD 552.4 million (EUR 501.4 million). In October, the export value to this market increased 17.5 percent from a year earlier. Sales to China saw a decline only in the first quarter but grew dramatically in the following quarters.
Despite significant drop in sales, the U.S. remained the second largest market for pangasius from Vietnam between January and October. Vietnam exported pangasius worth USD 232.9 million (EUR 211.4 million) to the U.S. in the period, down 45.8 percent from 2018.
VASEP said the unexpected decrease in sales to the U.S. has led to lower sales value of a number of leading pangasius companies in Vietnam.
Technical and commercial barriers, along with lower pangasius export prices resulted from low material rates, have together contributed to the drop in sales to the U.S., VASEP said.
Exports to other major markets in the period surged but with low rates. Sales to the European Union stood at USD 204.4 million (EUR 185.5 million), rising 3.6 percent, followed by ASEAN with USD 163.8 million (EUR 148.7 million), up 1.6 percent, Mexico with USD 77.1 million (EUR 70 million), up 2.9 percent, and Japan with USD 27.5 million (EUR 25 million), up slightly 0.6 percent year-on-year.
The export value to Brazil in the first 10 months declined to USD 47.2 million (EUR 42.8 million), down 29.6 percent, and to Colombia USD 39.2 million (EUR 35.6 million), declining 23.2 percent.
Due to the negative growth in demand in the U.S. and a few other markets, Vietnam is likely to achieve an export value of less than USD 2 billion (EUR 1.8 billion) or 15 percent lower than USD 2.3 billion (EUR 2.1 billion) last year, VASEP said.
Meanwhile, the prices of pangasius in Vietnam have continued its downward trend. Data from the Vietnam Industry and Trade Information Center (VITIC) showed that the pond prices in the Mekong Delta Province of An Giang in the week ending 21 November were between VND 19,500 (USD 0.84, EUR 0.76) per kilogram and VND 20,500 (USD 0.88, EUR 0.8) per kilogram, falling VND 11,100 (USD 0.48, EUR 0.43) and VND 14,000 (USD 0.6, EUR 0.55) per kilogram from a year earlier, and between VND 500 (USD .02, EUR .02) and VND 700 (USD .03, EUR .03) per kilogram from the previous week.
Photo courtesy of Jack Suvarnabhumi/Shutterstock
