According to Agromonitor, Vietnam’s pangasius exports to the US fell sharply in January and the first half of February. The reason is the weak purchasing power in this important market.

In particular, information from the Vietnam Association of Seafood Exporters and Producers (VASEP) shows that pangasius exports to the US reached just US$9.84 million in January, down 40% compared to December/December 2022 and a 81% decrease compared to January 2022.

In the first half of February, information from Agromonitor states that pangasius exports to the US fell by 33% in volume and 55% in value compared to the first half of February 2022.

In fact, pangasius exports to the US and EU have been declining since the second half of 2022 due to the impact of inflation.

Mr. Do Ngoc Hung, Vietnam’s trade adviser to the US, said the value of pangasius exports to the US only averaged US$32-33 million every month in the last few months of last year, a very sharp drop. compared to $81 million achieved in April 2022.

Weak purchasing power in the US market also caused the price of Vietnamese pangasius exports to fall sharply. Agromonotor data shows that the price of frozen pangasius fillets exported to the US in January and the first half of February fell by $1-1.5/kg compared to the same period in 2022.

According to Ms. Le Hang, communications director of VASEP, the average price for pangasius exported to the US was US$2.79/kg in January, down 34% from the same period in 2022.

As mentioned above, pangasius exports to the US fell sharply, mainly due to the inflationary situation in that market. Over the past year, the price of seafood products in the US market (including pangasius) has increased significantly.

This increase is not as high as many other items, but has also had an impact on the purchasing power of US consumers in the last few months of 2022 and will continue into early 2023.

Mr. Do Ngoc Hung said that the difficulties arising from the second half of 2022 for seafood exports in general and pangasius exports to the US market in particular may continue to dominate until 2023 due to the economic situation . There is a risk of a recession in the world, inflation in the United States has fallen but still remains high, plus the factor of exchange rate fluctuations.

In addition to the inflation factor, while Vietnamese pangasius still commands a dominant position in the US market (which accounts for more than 90% of US pangasius imports in 2022), it also faces increasingly stiff competition from a few others Exposed to countries in Asia that are also developing pangasius farming.

However, given changes in demand in the US market related to inflation, Vietnamese pangasius still has opportunities in this market in the near future.

First, to save money, Americans are increasingly using seafood at home instead of going to restaurants, often purchasing cheaper items.

With consumers changing seafood consumption habits, many retailers and supermarkets in the United States are increasingly promoting and selling affordable, long-life seafood products. This is an opportunity for Vietnamese pangasius to re-enter this market in the near future.

Also, there is another reason for the US to sharply reduce pangasius imports from the second half of 2022 to early this year, and that is the abundant stock of pangasius in the US through the end of Q3 2022. This stock is increasing however off. Therefore, among other factors, it is likely that Vietnam’s pangasius exports to the US will recover in the not too distant future.