Comprehensive strategy needed for pangasius exports and sales amid market slump

Nguyen Huu Dung, director of the Department of Industry and Trade of Dong Thap province in the Mekong Delta, pointed out that pangasius exports remain one of the province's key export industries, accounting for more than 65% of the total export turnover.

Before the COVID-19 pandemic, provincial enterprises had exported pangasius to 100 countries and territories around the world, including demanding markets such as the United States, the European Union, and Japan.

However, he said since the beginning of the year the consumption of pangasius in most markets globally has experienced a downward trajectory, significantly dealing a heavy blow to the fishery processing industry.

Simultaneously, the province's pangasius export markets have slumped, especially in the first half of the year, with pangasius products shipped to approximately 80 countries and territories worldwide.

Among major consumers, the US accounted for 26% of the province's total seafood export turnover, marking a drop of 57% year on year, while China and the EU markets made up 25.4% and 11%, representing falls of 44% and 14%, respectively.

Businesses outlined the numerous hurdles facing the pangasius industry, including the decline in the export market, low selling prices, large inventories, increased storage costs, and a shortage of capital to maintain production.

In addition, the cost of raising pangasius is still increasing, while processing factories have been forced to maintain production in an attempt to retain skilled workers

Given such context, pangasius processors and exporters throughout Dong Thap are keen to receive support in terms of preferential mechanisms and policies and market information, to help them strengthen the pangasius value chain and improve the overall quality of breeding stock.

Moreover, trade promotion strategies for the industry are required as a means of promoting domestic consumption and exports in the future.

Relevant ministries and agencies have been asked to support businesses in accessing credit sources, promoting pangasius products in new markets, reducing import tax for items that are input materials in feed production, and speeding up brand development for pangasius products

Experts predict that from now until the end of the year, the export of pangasius products will show signs of optimism, and enterprises are advised to devise solutions in a bid to proactively gain entry to new export markets, along with researching product development strategies suitable for each market.