Dr. Duong Nghia Quoc - Chairman of the Vietnam Pangasius Association had an interview with a reporter from Industry and Trade Newspaper about this issue.

Pangasius prices are falling very low. Even though pangasius farmers are at a loss, they still have to sell them. Can you share more about this issue?

Currently, according to businesses, pangasius exports have prospered in recent months, but export prices are also low . Purchasing from factories is also low and is lower than cost.

Pangasius exports are forecast to reach a maximum of 1.7 billion USD in 2023

Currently, the price of 1kg of pangasius is about 27,500 - 28,000 VND/kg but farmers sell it for only about 26,000 - 26,500 VND/kg. Thus, farmers are suffering heavy losses, and even businesses are also suffering losses. Because many businesses have farming areas and reserve goods. The situation is very difficult.

The reason for the decrease in pangasius prices is due to a sharp decrease in consumer demand from Vietnam's major importing countries. According to data from Vietnam Customs, pangasius exports in October 2023 to markets reached nearly 173 million USD, down 4% over the same period last year. Cumulative exports of Vietnamese pangasius in the first 10 months of this year reached more than 1.5 billion USD, down 29% over the same period in 2022.

To date, China has become the largest market for Vietnamese pangasius, double the second largest market, the United States .

Among the Top 6 markets buying the most pangasius from Vietnam including the United States, England, Mexico, China and Hong Kong (China), CPTPP, and Brazil, only the Brazilian market is growing.

Specifically, in the US market reached 228 million USD, down 54%; UK market reached 54 million USD, down 1%, Mexican market reached 58 million USD, down 37%, China and Hong Kong (China) market reached 490 million USD, down 23%, CPTPP market reached 202 million USD, down 28%, the Brazilian market alone reached 83 million USD, up 5%.

With the current market situation, according to him, this year pangasius exports will reach the target of 2.5 billion USD as Is the plan proposed?

According to discussions with businesses, it is possible that in the last 2 months of the year, pangasius exports will reach over 200 million USD. Thus, the entire industry's exports can reach around 1.7 billion USD.

2023 is a year of fluctuations, the pangasius industry faces many difficulties. If the world's economic situation recovers, it is forecast that pangasius exports will increase again, but the forecast is just a prediction.

Dr. Duong Nghia Quoc - Chairman of Vietnam Pangasius Association

The concern now is that there is still inventory in their country. The inventory of domestic enterprises still exists but is not large. Therefore, if market demand increases again, exports are likely to improve.

Information from some businesses also said that the market signal began to recover when the Chinese and German markets increased imports due to entering the year-end holiday season.

However, the price of exported pangasius is still low, the purchasing volume is not as much as expected. Meanwhile, some businesses are not in a hurry to buy fish to sell because the export price is not high.

Although inflation is occurring in many countries, the need for food is still essential. Pangasius is a fairly cheap product, however, why is demand still low, sir?

According to businesses, currently, there are similar products on the market that compete directly with Vietnamese pangasius such as white-fleshed sea fish, and even China has cotton snakehead fish. The selling price is lower and the quality is more guaranteed and stable. As for Vietnamese pangasius, due to competition between businesses and difficulties in output, product quality is uneven. Many businesses sell at any price. Quality is not guaranteed, therefore, affecting the reputation of Vietnamese pangasius.

To overcome this problem, The Ministry of Agriculture and Rural Development and specialized agencies need to check and ensure quality , ensuring good ability to compete in the world market. For example, according to regulations, glazing ratio 10%, humidity 83%. If any business does not guarantee this, it will not be allowed to export.

Currently, the weakness of Vietnamese businesses is that horizontal linkages between businesses are difficult, leading to unfair competition. When the market is difficult, every business needs money. Cheap or expensive, everything is sold. Even with a selling price that is too low, it will lead to a situation where the product is of poor quality to reduce losses. If quality is not maintained, it will lead to buyers boycotting Vietnamese products.

What is your assessment of the market in 2024, sir?

Currently, the sinusoidal market has reached the bottom. The cycle of the pangasius industry will begin to recover after bottom fishing. It is forecast that pangasius exports will be better in 2024 than in 2023.

Thank you!