Pangasius export: China is no longer an easy market

Meanwhile, US fish exports to the US, EU …
The top 3 biggest pangasius export markets are China, USA and EU.

After 3 years of slowdown, export of catfish to the US and EU markets has started to grow again. The export value of pangasius to the US market in July / 1818 surpassed China to the top of the list. However, China remains Vietnam’s largest importer of pangasius and, according to experts, wants to export sustainable pangasius in China to boost its exports.

In the first seven months of 2018, total export value of pangasius reached USD 1.198 billion, up 19.3% over the same period last year. The top three export markets were China, the US and the EU, and the export value to these three markets was positive.

Bright spot in the US and EU markets

Although the import market No. 1, but from July 1, 2015, the import tax on tra fish in China has been reduced by 3 – 4%. Specifically, the import tax on frozen pangasius fillets decreased from 10% to 7%; Tariff rates of fresh or chilled fish have dropped from 12% to 7%. This is a favorable factor to create more opportunities for enterprises to promote the export of pangasius to China, but the growth rate of catfish exports to China is declining.

In June and July 2018, the export value of pangasius to China reached US $ 48.4 million and US $ 38.4 million respectively, lower than the export value to the US market. However, cumulative 7 months, the export value of catfish to China still reached 289.8 million, up 40.6% over the same period last year, accounting for 24.2% of the total value of catfish exports, continue to keep the number 1 position.

In recent months in the two major markets and traditions of Vietnamese pangasius exports, the US and the EU have come up with new and bright points in the export of catfish, which is quite good growth.

For the US market, as of July 2018, export value reached $ 255.3 million, up 15.6% over the same period last year. In July, the value of exports to this market reached the highest level, higher than the export value to China, reaching nearly 58.5 million USD, accounting for 30% of total export of pangasius.

The US-China trade war is also a good opportunity for Vietnamese catfish exporters to take advantage of market share with tilapia products in the US market. It is predicted that if the upcoming catfish inspection program does not affect and disrupt the export of catfish to the US, this growth will continue. Vietnamese pangasius enterprises continue to hold on to the US.

For the EU market, in the first 7 months of 2018, the total export of catfish to this market reached 139.1 million USD, up 16.5% over the same period last year. This is a good signal after 3 consecutive years of exporting pangasius to this market gloomy. Particularly, exports of pangasius to the Netherlands and Italy increased sharply by 43% and 83.1% to reach $ 38.1 million and $ 14 million, respectively.

China tightens the technical barrier

At present, importers in China have stopped buying Vietnamese pangasius in order to consume all imported goods. As a result, many businesses reduce the purchase of raw fish. However, the forecast price of catfish from now until the end of the year will still be profitable for farmers.

According to Truong Dinh Hoe, general secretary of Vietnam Association of Seafood Exporters and Producers (Vasep), China is not only a large market, Pangasius export to this market is growing continuously and also The country has a rich cuisine. But, China is a unstable market, Vietnamese businesses are embarrassed by many regulations of the Chinese state.

For example, the regulation of phosphate content in EU pangasius products does not exceed 4%, but China, when testing pangasius products in Vietnam, only stated that “products have residues and can not meet Standard of China! ”

Particularly, since the volume of Pangasius exports to China has increased sharply, China has put in place technical barriers and strict controls on the quality of imported imports. border trade, while cross border trade is not subject to 17% VAT as the tariff line.

In the first seven months of this year, the total export of pangasius to China reached 289.8 million USD, of which, the export of non-quota accounted for about 40%. The export price is about USD 1 / kg.

According to Vasep, to promote seafood exports in general, pangasius in particular to the Chinese market, one of the important solutions is to focus on quality control, promote export rankings.