Export value of pangasius could reach USD 2.2 billion in 2019
(Updated at 13:32, 16/1/2019)
According to forecast of Vietnam Association of Seafood Exporters and Producers (VASEP), export value of pangasius will remain stable at USD 2.2 - 2.3 billion in 2019.
 
According to the Ministry of Agriculture and Rural Development, Vietnam is currently the largest pangasius exporter in the world.  In 2018, pangasius exports reached a record high of USD 2.26 billion, an increase of 26.4% compared to the same period in 2017. The industry's orientation in 2019 is to promote processing and improve value in order to maintain export momentum.
 
Mr. Nguyen Hoai Nam - Deputy Secretary General of VASEP said: This high growth rate is due to pangasius price increases. Many businesses have invested in processing high value-added pangasius products thus pushing up the export price of pangasius.
 
Currently, export prices of pangasius raw materials remain stable at high levels, therefore many businesses have invested in processing pangasius products.  VASEP predicts that pangasius export turnover will remain at USD 2.2 - 2.3 billion in 2019.
 
This number is completely feasible because according to economists, the US-China trade war has affected many economies including Vietnam but has positive effects on some export products.  Therefore, in 2019 pangasius is one of the industries that benefit the most from the increasing demand in China and trade barriers in the US.
 
In addition, when the Vietnam - EU Free Trade Agreement (EVFTA) is signed and enforced, the import tax on pangasius to the European Union (EU) will decrease from 5.5% to 0% in 3 years (for raw pangasius materials), from 7% to 0% in 7 years (for processed pangasius).  This is a great opportunity for pangasius exporters to boost their output and value.
 
Regarding improving quality of exported pangasius products, Mr. Tran Dinh Luan - Deputy Director of Directorate of Fisheries said the Directorate is working with enterprises to build high quality pangasius fillet brands: conducting research to improve the quality of pangasius fillet, improve processing technology to export pangasius products with better quality.  At the same time, promoting value-added processed products, making full use of the remaining products of processing to produce value-added products.  "To do this, the fisheries sector needs to invest in science and technology, make the best use of available materials, and turn into value-added products that serve the needs of people and the health sector "- Mr. Luan emphasized.
 
According to Vietnam Dragon Securities Company (VDSC), in 2019 pangasius is one of the most benefited industries thanks to increasing demand in China and lower trade barriers in the US - Vietnam's largest export market. In addition, with prolonged tensions in trade relations between the U.S. and China, Vietnam can completely increase market share of pangasius exports to the US replacing Chinese tilapia, which currently accounting for 40% of total fish imports of the U.S.
 
Pangasius businesses are expected to benefit greatly if the Vietnam – EU Free Trade Agreement (EVFTA) is signed earlier this year.  By then, the import tax on pangasius to the European Union will be reduced from 5.5% to 0% in 3 years for raw pangasius and from 7% to 0% in 7 years for processed pangasius. However in 2019 the situation of oversupply is also the risk that seafood exporters often face. However, in 2019, the situation of oversupply is also the risk that seafood exporters often face. In addition, EVFTA may be delayed due to political instability in Europe. Therefore, it is not possible to bring value to pangasius exporters this year.
 
 
Huong Nguyen
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