Pangasius exports to China unrecovered due to deflation
While the world is struggling with inflation, China is facing deflation. Pangasius exports to China can not recover amidst deflation.
According to VASEP, pangasius exports to China reached USD 132 million in quarter I, down 23% from the same period last year. The average exporting price of pangasius declined by 10%, down to 2.19 USD/kg.
While the world is struggling with inflation, China is allegedly facing a contrary matter, deflation.
“If the current economic situation of China must be described, it will be ‘deflation has started’ and the economy has fallen into the recession zone. Pangasius exports to China can not recover during the deflation period”, anticipated VASEP.
Businesses and consumers may stop spending in the hope that prices will decline further, making households reduce expenses. However, being an affordable and nutritious white fish, pangasius will be a good choice for Chinese consumers in 2023 when economic difficulties are unsolved.
China is no longer an easy market as it was before. Not all categories can penetrate this country. On the other hand, exported categories of this second-largest economy are similar to Vietnam’s, and as such, Vietnamese products can either enjoy advantages or face challenges.