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Pangasius export turnover of five months decreased by 39%

09/06/2020

Due to complicated development of the COVID-19 pandemic, Vietnam's seafood export turnover plummeted; in which pangasius exports of five months reached USD 456 million, a decrease of 39% over the same period last year.

According to the Ministry of Agriculture and Rural Development, complicated development of the COVID-19 pandemic in the world has caused Vietnam's seafood export turnover to major markets to decrease sharply, especially pangasius products with export turnover in the first five months reached USD 456 million, a decrease of 39% over the same period last year.

Pangasius industry is predicted to recover completely from the third quarter.

Compared to the same period in 2019, Vietnam's seafood exports to China, the EU, the United States ... all have a sharp decline with double digits.

The rapid decline makes pangasius exporting enterprises dependent on these markets face many difficulties, which has an immediate impact on pangasius raw material production.

Pangasius material prices in the provinces in the Mekong Delta in the past month leveled off at low levels.

Demand for raw fish caught in the market remained low. Big companies hardly catch fish outside but mostly catch in the affiliate system, small companies and outsourcing units are few.

So far, Pangasius import demand in China market, the largest market accounting for 22.5% of total pangasius export value, is recovering.

It is forecast that supply chain interruptions due to the COVID-19 pandemic will be temporary and import and export activities are expected to recover after the pandemic is brought under control.

China is now in control of the pandemic and trade is beginning to recover. Moreover, inventories in some major importing countries are currently at low levels.

According to Vietnam Association of Seafood Exporters and Producers (VASEP), the situation of COVID-19 pandemic is still complicated in major export markets such as the United States, EU, Brazil ... therefore, pangasius exports in the second quarter can hardly escape the negative growth.

If in the third upcoming quarter, the situation in COVID-19 pandemic epicenters is under control, production and business activities reopened, the export of pangasius will have a chance to recover.

In order to regain the growth of this industry, Mr. Tran Dinh Luan, Director General of the General Department of Fisheries, said that the industry will strengthen control of aquaculture conditions and quality of input materials; check aquaculture conditions and isssue/re-issue pond identification numbers according to the Fisheries Law.

Farmers and processing enterprises need to join in the chain of linkages, to produce in accordance with what the marketplace dictates, to avoid oversupply of raw fish or lack of raw materials for export.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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