Tra fish exports face tough competition in international market

According to details given by Vietnam Customs, the first half of July witnessed Vietnamese Tra fish (pangasius) exports reach US$85 million, up 22% over the same period from last year.

The Vietnam Association of Seafood Exporters and Producers (VASEP) reported that on average tra fish exports raked in more than US$150 million each month, thereby accounting for 20% to 22% of the total export turnover of the entire sector, second only to shrimp as this product had higher prices.

The largest consumption markets for Vietnamese pangasius include China, the United States, the EU, and CPTPP countries. However, Vietnamese pangasius is facing strong competition from other white fish. Specifically, cod is considered to be the “king” of white fish thanks to its high brand value, good meat quality, and rich nutritional value. However, high prices and limited supply are among some of the major barriers.

According to the International Trade Center (ITC), the nation is the second source in the race for white fish exports to China, behind only Russia.  The first half of this year witnessed the northern neighbour import nearly 80 thousand tonnes of white fish, mainly pangasius, from the Vietnamese market, down 17% on-year. Meanwhile, imports from the US reached 45 thousand tonnes, up 57%; Norway reached 19 thousand tonnes, up 28%; and Greenland hit nearly five thousand tonnes, up 188%.

The ITC said that the country is also the second largest supplier of white fish (mainly pangasius) to the US, after China. In the first five months of this year, the US imported more than 45 thousand tonnes of white fish (mainly pangasius) from the Vietnamese market, an increase of 37%, accounting for 30% of total US white fish imports.

However, each type of fish has its own advantages and disadvantages. With Pangasius often being priced lower than other white fish, thereby helping to attract many customers, especially in emerging markets.

Furthermore, this is a type of fish which boasts a large and stable output. The country is one of the largest pangasius producers in the world, ensuring a stable supply for the market.

Pangasius is processed into many different products, thereby meeting the needs of many customers. Moreover, the nation enjoys a favourable geographical location which helps to reduce transportation costs and shorten delivery times.

Vietnamese pangasius holds huge potential for competition in the international market. However, according to the VASEP, the general quality of Vietnamese pangasius products still depends on many factors such as breed, feed, and farming environment.

Moreover, this product also faces many trade barriers such as import tax, technical regulations, policies adopted by ever-changing markets, and unfair competition.

To be successful, the pangasius industry needs to proactively make a deeper inroad into the market, improve product quality, build brands, and diversify markets.