Pangasius Exports Are Still Affected By Covid-19

Pangasius Exports to China – Hong Kong, Singapore, and the UK

In April 2020, Vietnam experienced positive growth in pangasius export values to key markets such as China – Hong Kong (20.1%), Singapore (127.6%), and the UK (20.3%). However, despite these gains, the overall export value of pangasius by the end of April 2020 reached $449.5 million, indicating a significant decline of nearly 27% compared to the same period in 2019.

Most major importers, including the top 10 largest importers of Vietnamese pangasius, experienced a decline in imports. On the other hand, exports to Singapore rose by 12.7%, and those to the UK saw a modest increase of 1.1% compared to the previous year.

China – Hong Kong Market

Pangasius exports to the China – Hong Kong market witnessed a recovery and growth period since late February and early March 2020 when Chinese processing factories resumed operations. However, by the end of April 2020, the total export value of pangasius to China – Hong Kong reached $111.1 million, a decrease of 20.2% compared to the same period in 2019.

Notably, exports to the Hong Kong market specifically experienced a decline of 24.6% compared to the previous year. Despite the decline, China – Hong Kong remained the largest importer of Vietnamese pangasius, accounting for 24.7% of the total export value.

During March and April 2020, Chinese customers mainly engaged in stockpiling activities, concerned about potential interruptions if Vietnam were to implement prolonged social isolation measures.

Additionally, post-COVID-19 production resumptions in China resulted in slower consumption, with many restaurants still closed or Chinese consumers preferring online purchases and supermarket shopping. Some Chinese customers even sought price reductions, adding further challenges for exporters.

US Market

In April 2020, pangasius exports to the US market experienced a significant decline of 20.7% compared to the same period in 2019. The United States has been one of the countries most severely affected by COVID-19, leading to difficulties in production activities and labor shortages in food and aquatic product processing factories.

Consequently, pangasius exports to the US plummeted once again. By the end of April 2020, pangasius export value to the US reached $74.6 million, a 14.6% decrease compared to the previous year.

ASEAN Market

Pangasius exports to the ASEAN market declined by 24.4% by the end of April 2020, amounting to $53 million compared to the same period in 2019. ASEAN, as the third-largest importer of Vietnamese pangasius (following China – Hong Kong and the US), accounted for 11.8% of the total export value.

Notably, in April 2020, pangasius exports to ASEAN experienced a decline, with Thailand, the largest importer in the region, witnessing a nearly 30% decrease. Similarly, exports to Malaysia dropped by 31%. However, exports to Singapore recorded a remarkable spike of 127.6% compared to the previous year.

By the end of April 2020, pangasius exports to Singapore also grew by 12.7% compared to the same period in 2019, demonstrating the market’s positive growth among Vietnam’s top 10 largest importers.

EU Market

The European Union (EU) became the second market significantly impacted by the COVID-19 pandemic, particularly in major importing countries such as Italy, Spain, and the UK. The implementation of lockdown measures in Italy resulted in a sharp decline in seafood consumption due to the closure of restaurants, hotels, and schools.

Consequently, seafood distributors reduced prices, affecting the price of imported seafood. Pangasius exports to the EU faced numerous challenges in the first four months of 2020, with the export value reaching $48.3 million by the end of April 2020, a decline of 36%.

Among the EU’s three largest importers, the Netherlands, Germany, and Belgium, exports dropped by 29%, 31%, and 38.8%, respectively.

Future Outlook

Given the complex situation of the COVID-19 pandemic in major export markets such as the US, EU, and Brazil, it is anticipated that pangasius exports will continue to experience negative growth in the second quarter.

However, there is potential for recovery in the third quarter if epidemic situations in key countries are brought under control, leading to the reopening of production and business activities in those regions.