The zero Covid policy enforced in a long time has dragged China’s seafood market into a decline. Demand and prices have both fallen. However, VASEP anticipated that China is a potential market for Vietnam’s pangasius businesses.
According to VASEP, after a high growth in the first ten months of the year, pangasius exports to China suddenly fell in November by 46%, valued just USD 37 million.
The zero Covid policy enforced in a long time has dragged China’s seafood market into a decline. Demand and prices have both fallen.
According to statistics and information from 68 wholesales markets all over the country, in September the revenue of seafood products declined by 19.6% as compared to the same period last year, the average price of seafood stayed at 3.41 USD/kg, down 12.1% from the same period last year.
The price of freshwater seafood dropped by 6.3% to 2.64 USD/kg on average while the total volume of freshwater sold to the market reduced by 16.5%. The quarantine upon the fear of Covid was to blame.
By late November, Vietnam achieved USD 636 million from exporting pangasius to China, up 81% from the same period last year. Meanwhile, exports to Hongkong reached nearly USD 38 million, up 46%.
Exports of frozen pangasius fillet HS 0304 to China alone reached USD 472, accounting for 74% of the total export value of Vietnamese pangasius recorded in this market.
According to the General Administration of Customs of China, by the end of October, China has imported nearly USD 500 million worth of Vietnamese frozen fish fillet HS 0304, with frozen pangasius fillet accounting for nearly 89%, valued at USD 444 million.
Vietnamese pangasius were exported to China through twenty-four Chinese ports and border gates, with 29-30% in Guangdong, 12% in Tianjin, 12% in Shandong, 11% in Shanghai, 9% in Zhanjiang and Beijing, 8% in Fujian, and some in Quangxi, Hubei, Liaoning, and Jiangsu.
VASEP anticipated that it would be hard to predict the Chinese market in the next few months as it has to depend mainly on whether or not the Government would adjust the zero covid policy. However, this is still a big market with huge demand.
In 2022, by this time of the year, over 160 Vietnamese businesses have exported pangasius to China, with the top five of them being DATHACO, TG FISHERY, I.D.I, Cadovimex II, GODACO Seafood. There’s no big difference in revenue among these companies, accounting for 6-7% of the total pangasius export value to the Chinese market.