VIETNAMESE PANGASIUS EXPORTS TO EU SOAR
Vietnamese pangasius exports to EU soar. As of the first half of May 2019, Pangasius export value to EU market reached US$105.2 million, up 31.5% over the same period in 2018, reports the Vietnam Association of Seafood Exporters and Producers. In particular, exports to the four largest single importers all went up.
The Netherlands increased by 12.2%; England climbed by 59.4%; Germany lifted by 61.6% and Belgium increased 63.8% over the same period last year. Thus, from the beginning of 2019, pangasius exports to EU has shown signs of clear growth after a long period of continuous decline.
In the history of more than 10 years of pangasius exports, EU is still the traditional and largest importer of Vietnamese enterprises. Compared with the years 2008-2009, the export value of pangasius to EU went down. However, EU is still considered a key and extremely important market for Vietnamese pangasius enterprises.
In the last 2 years, the export value of pangasius to the EU increased positively again because the import demand in many markets of the EU rose, the average imported prices of pangasius also increased from US$2- US$2.6/kg in 2016- 2017 to 2.8 to US$3.5/kg in 2018. In the first 3 months of 2019, the average imported price of pangasius into EU reached US$2.93 – US$3.55/kg. It is forecastes that, pangasius exports to Central and Eastern Europe increase in the coming time.
In addition to the positive effects taking place in many single markets in the EU, the EVFTA Agreement also is adopted and signed. It is forecasts that, after this FTA takes effect, pangasius exports to EU will have more opportunities. With main pangasius products: fresh, chilled fillet pangasius (HS 030432), its tax shall be reduced from 9% to 0% after 3 years; the tax rate for frozen fillet pangasius (HS 030462) shall fall from 5.5% to 0% after 3 years when EVFTA took effect. Products of frozen pangasius (HS 030324) are eliminated in 3 years from the current level of 8%.
According to ITC statistics, from 2018 to the first quarter of 2019, the average imported price of pangasius in the Netherlands – Vietnam’s largest pangasius importer in the EU, in the first 5 months of 2019, is quite good. In which, pangasius products (HS 030432) are at high prices from US$7.9 to US$9.2/kg; pangasius products (HS 030324) ranged from US$2.2 to US$2.4/kg.
In addition, pangasius exports to the UK also increased positively, in which, 2 groups of frozen fillet pangasius products (HS 030462 and HS 030272) are also being imported more in this market.
The average imported price of pangasius of Austria, Denmark, Germany and Finland is also higher than that of regional countries.
Thanks to the advantages that have been taking place in the EU and the opportunities from tariffs after EVFTA comes into effect. It is forecasted that the growth of pangasius of Vietnam will be more positive. However, in addition to increasing high quality products, value added, brand building and images for pangasius in the EU, Vietnamese exporters also need to have specific strategies for each market.