December 26, 2024 | 03:42 GMT +7

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Wednesday- 16:02, 13/09/2023

Positive signals for pangasius exports to the United States

(VAN) The export of pangasius to the United States has witnessed a substantial decline over the last eight months. However, this decline has seen a positive impact from the anti-dumping duties and favorable FSIS inspections.
Business-owned pangasius production area in Tien Giang province. Photo: Son Trang.

Business-owned pangasius production area in Tien Giang province. Photo: Son Trang.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), on September 7, 2023, the U.S. Federal Register announced the preliminary results of the 19th administrative review (POR19) for frozen pangasius fillets exported from Vietnam to the U.S. between August 1, 2021 and July 31, 2022.

Vinh Hoan Corp and Caseamex Co., Ltd. are the two mandatory respondents in POR19. According to the preliminary results, Vinh Hoan Corp has a tax rate of 0, while Caseamex has a rate of 0.14 USD/kg. Other companies, including I.D.I CORP, Cafatex Seafood Corporation, Loc Kim Chi Seafood Corporation, and Hung Vuong Corporation, are also subject to a 0.14 USD/kg tax rate. VASEP assesses that the preliminary POR19 tax rates have decreased compared to the final results of POR18.

Pangasius exports to the United States have seen a significant decline in 2023. From the beginning of the year until mid-August, pangasius exports to the United States only reached 169 million USD, which is a 59% decrease compared to the same period in 2022. The sharp decrease in exports is mainly attributed to inflation and economic recession worldwide. Additionally, high inventories accumulated as the US market imported a significant amount of pangasius in the first half of 2022.

VASEP believes that the year-end holiday season, in combination with decreasing inventories and positive results following the inspection by the Food Safety and Inspection Service (FSIS) under the U.S. Department of Agriculture, will boost the confidence of Vietnamese pangasius exporters in the last few months of the year.

At the end of August 2023, an FSIS inspection team visited Vietnam to perform inspection on the food safety control system for exported pangasius. According to Mr. Tran Dinh Luan, Director General of the Directorate of Fisheries under the Ministry of Agriculture and Rural Development, no significant errors have been found during the inspect. Vietnam's pangasius production process was found to meet the requirements and conditions under the Siluriformes fish inspection program for exports to the United States. All farming regions and facilities in association with exporting companies have been granted identification numbers for their ponds.

The Mekong Delta region currently has 142 facilities and farming regions providing raw materials to 5 businesses exporting pangasius to the United States, accounting for nearly 9% of the total number of pangasius farming facilities in Vietnam. All of these facilities have undergone inspections and assessments by the United States.

Deep-processed products from pangasius by Godaco. Photo: Son Trang.

Deep-processed products from pangasius by Godaco. Photo: Son Trang.

The United States is one of the largest importers of Vietnamese pangasius. In 2022, after ten years of the comprehensive partnership between Vietnam and the United States, pangasius exports to this market reached 537 million USD, which is an increase of 41% compared to that in 2013.

Over the last ten years, the United States has been the largest pangasius consumption market for Vietnam in 2015 and 2016. The United States has maintained its position as the second-largest pangasius import market after China & Hong Kong since 2019, accounting for approximately 22% of the Vietnam's total pangasius export volume. Vietnam mainly exports frozen pangasius fillets, frozen pangasius portions or cuts, frozen breaded pangasius, dried pangasius, and fried pangasius skin to the United States.

Several Vietnamese pangasius businesses have invested in processing value-added products from pangasius for export to the United States and other markets around the world. According to Mr. Nguyen Van Dao, Chairman of the Board of Directors of Godaco Group based in Tien Giang province, despite the relatively low market share of deep-processed products, there has been a rising trend in the consumption of these products. Deep-processed products represent a sustainable segment with lower competition compared to raw material exports, which face fierce competition with other pangasius businesses and countries exporting various white fish products. Additionally, deep-processed products offer higher selling prices and profit margins. Deep-processed products accounted for roughly 15% of Godaco's pangasius exports to the United States in 2022.

Similar to other major seafood categories, pangasius exports from Vietnam have seen a sharp decline this year due to inflation and economic recession worldwide. However, there are multiple positive signs for this product category. According to Agromonitor, pangasius exports increased by 22% in volume and 19% in value in August 2023 compared to July 2023. Several markets, including South America, the United States, and the Middle East, have shown positive growth in volume.

Author: Son Trang

Translated by Nguyen Hai Long

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