June 23, 2023

Vietnam's pangasius exports to EU experience decline, but gradually recovering

Vietnam's pangasius export turnover to the EU reached US$60 million by the end of April 2023, marking an 8% decline compared to the same period in 2022, but it still demonstrated significant growth of 70% compared to the corresponding period in 2021, accounting for 11% of Vietnam's pangasius exports, Fish Information & Services reported.

In April 2023 alone, pangasius exports to the EU market amounted to US$15 million, reflecting a 21% decrease compared to the previous month and an 18% decrease compared to the same period last year.

During the same period, Vietnam's pangasius exports to most EU markets experienced a decline, ranging from 13% to 30% compared to 2022. The Netherlands, Belgium, and Spain emerged as the top three markets that reduced imports of Vietnamese pangasius, with decreases of 22%, 13%, and 30%, respectively. The German market bucked the trend, recording positive growth of 78% in the first four months of 2023.

The EU market has historically been Vietnam's largest pangasius import market, with sales peaking at US$511 million in 2010, accounting for 36% of Vietnam's pangasius exports. In subsequent years, pangasius exports to the EU experienced a significant decline.

In 2022, Vietnam's pangasius exports to the EU made a remarkable comeback, driven by increased demand following the prolonged impact of the COVID-19 pandemic. Factors such as incentives from the EVFTA (European Union-Vietnam Free Trade Agreement), the Russia-Ukraine conflict, and sanctions imposed by other countries on Russia's economy and trade contributed to heightened EU demand for white fish imports from Vietnam.

While pangasius exports to the EU in the first four months of 2023 showed a decline compared to the same period in 2022, it still demonstrated positive progress compared to previous years.

Vietnamese seafood exporters, including pangasius producers, face challenges due to varying market regulations within the EU. It is imperative for businesses to diligently study and understand these regulations, enabling them to effectively utilize tariff preferences and adhere to rules of origin when exporting pangasius to the EU market.

-      Fish Information & Services