| Sharp increase in volume, pangasius exports to Brazil earn nearly 28 million USD Which market is buying the largest pangasius from Vietnam? |
Vietnam is in the process of promoting negotiations on a Free Trade Agreement (FTA) with the Southern Common Market (Mercosur) bloc, to turn this FTA into a driving force to exploit the Latin American export market.
According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Mercosur is a sub-regional bloc established in 1991 by countries including Argentina, Brazil, Paraguay and Uruguay.
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| Vietnam's pangasius exports open to Mercosur market |
Mercosur is a dynamic, competitive and growing economic and industrial region, with increasing influence as the 5th largest economic bloc in the world. With an important geographical position in East Asia and Asia- Pacific , Vietnam is an important gateway for Mercosur countries to enter the ASEAN market.
As a member of the Mercosur bloc, Brazil is currently Vietnam's largest trading partner in the bloc and in Southeast Asia.
According to statistics from the General Department of Customs, in the first half of June, Vietnam's pangasius export turnover reached 4 million USD, up 5% over the same period last year. Cumulative pangasius export turnover up to the first half of June reached 50 million USD, up 47% over the same period in 2023.
Since the beginning of this year, Brazil has almost only imported frozen pangasius products and frozen pangasius fillets from Vietnam under HS code 03046200. The largest pangasius supplier to this market in the first 5 months of this year is Hung Ca 2 (accounting for 19% of the value).
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| Chart of Vietnam's pangasius exports to the Brazilian market |
In addition, Vietnam's pangasius exports to markets in the bloc are still considered to have potential. By the end of May, pangasius exports to Argentina reached nearly 1.5 million USD (up 238%), Uruguay reached more than 700,000 USD (up 2%). Meanwhile, Paraguay is still quite limited in importing pangasius from Vietnam. This country is a major exporter of agricultural products, livestock and electric energy in the world . Currently, Vinh Hoan is the only Vietnamese enterprise exporting to this market in the first 5 months of this year.
Due to geographical distance, language differences, and the lack of direct freight and passenger transport routes, logistics costs for goods from Vietnam to this market are high, and the two sides do not have a free trade agreement.
Therefore, VASEP expects that with the potential, Vietnam and the Mercosur market bloc will soon have the first FTA, paving the way for export trade cooperation between the two sides, including pangasius export.
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