Vietnam has increased its pangasius exports to global markets during the first three quarters of 2024, with some of the largest growth seen in its shipments to the U.S.
The Southeast Asian nation shipped 670,000 metric tons (MT) of pangasius to global markets in the first nine months of 2024, representing a 15.5 percent increase year over year. The value of those exports in the period totaled USD 1.5 billion (EUR 1.4 billion), up 8 percent from the same period in 2023.
The U.S. imported 85,000 MT of Vietnamese pangasius in the period, which marked an increase of 38.6 percent year over year and making it the second-largest destination for the product after China, according to a report from Vietnamese securities firm Phu My Securities.
The value of pangasius exports to the U.S. rose 24 percent year over year to USD 256 million (USD 235.6 million), largely thanks to average export prices hitting USD 3.20 (EUR 2.90) per kilogram as of September, which was up 11.2 percent year over year.
That growth does not seem to be slowing, as exports to the U.S. grew 32 percent year over year by value to more than USD 30 million (EUR 27.6 million) in September alone.
One reason for the uptick is that current pangasius inventories in the U.S. are lower than in 2023 and 2022, prompting U.S. retailers to restock ahead of the year-end season. Additionally, the decrease in inflation that the U.S. has seen throughout 2024 has driven increased consumer demand in the market, Vietnam Association of Seafood Exporters and Producers (VASEP) said.
The Vietnamese trade group also explained that a recent decision from the U.S. Department of Commerce (DOC) is expected to further boost exports of pangasius to the U.S. In its preliminary ruling covering 1 August 2022 to 31 July 2023 released on 17 September, the DOC determined that Vinh Hoan and several other Vietnamese pangasius exporting firms did not engage in dumping their products in the U.S. market and are, therefore, not subject to additional duties.
Further benefiting trade between the two countries, after many months of sluggish sales values and volumes, the U.S. retail seafood market saw a resurgence in September, with shelf-stable seafood and frozen shrimp experiencing the most significant gains, according to data from research firm Circana, analyzed by Lakeland, Florida, U.S.A.-based 210 Analytics.
Tilapia has traditionally been the top whitefish product imported into the U.S., but from February to the end of August 2024, frozen pangasius fillets overtook frozen tilapia fillets to become the leading imported whitefish product in the U.S., according to data from the International Trade Center cited by VASEP.
Association of Genuine Alaska Pollock Producers (GAPP) Director of Industry Relations, Partnerships, and Fishery Analysis Ron Rogness has noticed this trend but told SeafoodSource that low-priced fish from Vietnam is not necessarily a direct competitor to U.S. pollock.
“Pangasius competes in the ‘cheapest fish available’ market in the U.S., which is not one we prefer to compete in,” Rogness told SeafoodSource.
China – the top importer of Vietnamese pangasius during the first nine months of 2024 – imported 202,000 MT during the period, which was up 8.6 percent year over year, Phu My Securities said.
Vietnam's pangasius exports to China were worth USD 386 million (EUR 355 million), down 7.2 percent year over year due to a decline in export prices to the market. Average pangasius export prices to China have decreased since 2023, dropping to USD 1.70 (EUR 1.60) per kilogram as of September 2024 and marking a decrease of 20.8 percent year over year mainly because of high competition from other whitefish sources.
Though the value in sales to China has been down, the overall growth in sales to the U.S. and China has positively impacted pangasius companies in Vietnam.
Leading exporter Vinh Hoan, for example, reported a 21.5 percent year-over-year increase in sales value to VND 3.3 trillion (USD 129.6 million, EUR 119.2 million) in Q3 2024, with net profits rising 69.8 percent year over year to VND 341 billion (USD 13.5 million, EUR 12.4 million).
Vinh Hoan’s pangasius sales by value surged 33 percent year over year to VND 1.9 trillion (USD 75 million, EUR 69 million) and 26 percent by volume. The company’s average selling price also increased to USD 3.20 (EUR 2.94) per kilogram in Q3 2024, which was up from USD 3.00 (EUR 2.76) per kilogram in the same quarter of 2023, securities firm SSI said recently.
A side effect of the increased sales is that raw material prices for Vietnamese pangasius farmers have risen an additional VND 500 to VND 800 (USD 0.02 to USD 0.03, EUR 0.02 to EUR 0.03) per kilogram, Siam Canadian Vietnam Sales Manager Le Thuy Trang told SeafoodSource.
“In my view, the positive buying trend from the U.S. and China could lead to a temporary shortage of certain raw materials until Lunar New Year,” Trang said.
