Pangasius exports exceed US$1.62 billion in 2021

At a conference held this morning by the ministry to review the pangasius industry in 2021 and deploy the production and export plans in 2022, the Directorate of Fisheries said that 2021 ended with several difficulties caused by the direct impact of the Covid-19 pandemic on the economy, including the pangasius industry. In 2020, the pangasius industry was influenced by the lockdown order in the main export markets, and in 2021 it was affected by the Covid-19 pandemic. The chain of pangasius production, processing, and export was strongly hit, causing the whole industry to face many difficulties. In July, August, and September 2021 alone, the pangasius farming area decreased by 30-55 percent, and the output dropped by 17.9 percent compared to the same period in 2020 because many localities in the Mekong Delta implemented social distancing. Many seafood processing enterprises suspended or stopped their operations because they could not afford the burden of costs and failed to meet the conditions for three-on-site production.

In that context, the MARD promptly implemented many options, such as establishing the Special Working Group 970, coordinating with the Ministry of Health, the Ministry of Transport, the Ministry of Industry and Trade, and localities to directly deal with the problem in production; organizing some conferences to discuss solutions to overcome difficulties and obstacles for seafood production and consumption in general; holding a separate conference to discuss solutions for the development of the pangasius industry. As a result, aquaculture production in 2021 managed to maintain growth. Specifically, aquaculture production for the whole year reached 4.81 million tons, up 1.1 percent compared to 2020. Of which, pangasius production hit 1.52 million tons, up 1.63 percent over the same period in 2020. Pangasius export turnover in 2021 topped US$1.62 billion, up 8.4 percent over the same period last year. It is a spectacular comeback of the pangasius industry in 2021.

According to the departments of Agriculture and Rural Development of the Mekong Delta provinces, raw pangasius prices have continuously surged recently. Currently, raw pangasius price is at VND29,500-VND30,000 per kg, up VND4,000-VND5,000 per kg compared to the last months of 2021. This price level guarantees high profits for farmers. The increase in raw pangasius price is an important premise to develop production and consumption in 2022. However, there are also many potential risks of the rapid development of the industry. The Vietnam Association of Seafood Exporters and Producers (VASEP) said that Vietnam's pangasius import markets were recovering and forecasted good growth in 2022. Therefore, the price of pangasius for export will possibly increase because the costs of farming, materials, labor, and logistics all climb. According to the Vietnam Pangasius Association, from February to April 2022, the raw pangasius price in the Mekong Delta will fluctuate around VND30,000 VND/kg. However, if the shipping rates continue to stand at the high level as currently and advance further, the raw pangasius price cannot edge up anymore. Besides, petrol prices have escalated, marine fish prices in the world have soared, and fishing has also been and will continue to be limited. Therefore, Vietnam's pangasius products will have a better foothold in the global market. From the above factors, according to the MARD, the pangasius industry has made a production plan with a commercial fish output of 1.6-1.7 million tons in 2022, and pangasius export turnover exceeded $1.6 billion. The MARD requires localities to improve the quality of pangasius breeds, direct the production to supply enough high-quality fingerlings to improve production efficiency, reduce loss, and lower production costs. Businesses and farmers continue to promote cooperation and chain links to ensure stable consumption. It recommends farming households, which have not associated with any enterprise, temporarily halt farming. They should upgrade the farming conditions, find an appropriate form of association to ensure a stable production plan, and limit risks due to the impact of the Covid-19 pandemic and other factors.