Pangasius exports in the Mekong Delta: prospects and challenges

VASEP highlighted several growth opportunities for the pangasius sector, including positive anti-dumping outcomes, reduced stockpiles in key markets, and a more balanced supply of raw fish compared to 2023. Additional favorable factors include the recovery of the U.S. economy, opportunities to expand market share in smaller markets alongside traditional ones, and the global potential for pangasius products.

Pham Thi Thu Hong, Secretary-General of the Vietnam Pangasius Association, noted that Vietnam has over 100 pangasius processing companies, mainly concentrated in provinces like An Giang, Dong Thap, Can Tho, Hau Giang, and Vinh Long. Annual pangasius output exceeds 1.6 million tons. These companies are equipped with advanced machinery and meet stringent standards required by demanding markets such as Europe and North America.

The consumption of raw pangasius remains relatively stable, with prices for commercial pangasius (0.7–0.8 kg/fish) ranging from 26,400 VND to 27,600 VND per kilogram. Production costs have decreased due to lower feed prices, allowing farmers to earn profits.

In Dong Thap, 27 pangasius processing enterprises operate with a combined designed capacity of about 700,000 tons per year. Leading enterprises, such as IDI Corporation under Sao Mai Group, have weathered the COVID-19 pandemic and global economic crises, making significant investments in pangasius export processing. IDI currently operates two pangasius processing plants and plans to build a third one, primarily targeting the U.S. market. The company also produces refined fish fat and cooking oil from fish fat.

Ongoing challenges
Despite its achievements, the pangasius industry faces many challenges. Rising fuel and input costs increase production expenses, affecting farmers’ profitability. Many farmers find it difficult to secure bank loans due to the lack of collateral, as most lease their ponds. Slow consumption and extended farming durations lead to higher costs, reducing profitability for both commercial and breeding operations.

Thu Hong pointed out that some pangasius processors have yet to maximize deep processing or utilize by-products, resulting in waste, environmental pollution, and higher costs. Farming areas remain fragmented and lack the infrastructure to ensure sustainable development.

Environmental concerns are also pressing. Overemphasis on profits at the expense of sustainability could lead to severe pollution issues. Local governments must establish synchronized farming zones with comprehensive environmental protection plans. Expanding circular farming models, such as utilizing waste sludge, could enhance both environmental and economic outcomes.

Most pangasius exporters comply with international quality management and food safety programs such as HACCP, BRC, Global GAP, IFS, ASC, and BAP certifications. Adhering to these standards is crucial for accessing over 150 export markets, underscoring the importance of meeting diverse market requirements.

Lan emphasized the 2025 goal of achieving 1.65 million tons in pangasius output and USD 2 billion in export turnover. Key strategies include improving seed quality to adapt to climate change, researching alternatives to fish meal and fish oil with plant-based, insect-based, and microbial protein feed, and enhancing production processes from breeding to export. These efforts aim to ensure international quality and standards for Vietnamese pangasius products.

VFM