Since the beginning of 2019, pangasius exports to the EU have shown signs of significant growth. By the end of May 2019, the total value of pangasius exports to this market reached 118.7 million USD (up 29.8%), accounting for 15% of total pangasius exports. Particularly, exports to the UK and Germany continued to grow positively compared to the same period in 2018.
In the history of over 10 years of exporting pangasius, EU is still the traditional and biggest market for Vietnam Pangasius enterprises. Compared to 2008-2009, pangasius export value to the EU decreased. However, this is still considered a key and indispensable market for pangasius enterprises.
In the past 2 years, pangasius export value to the EU has grown optimistically due to increasing import demand in many markets, average pangasius import price also increased from 2-2.6 USD/kg in 2016- 2017 to 2.8 – 3.5 USD/kg in 2018 and the first 3 months of this year, the average import price of pangasius in the EU reached 2.93 – 3.55 USD/kg. Moreover, pangasius exports to Central and Eastern Europe are expected to increase in the near future.
Along with the new development of pangasius export after many years of decline in the EU, this June 30, 2019, the EU-Vietnam Free Trade Agreement (EVFTA) and the Investment Protection Agreement (IPA) between The European Union (EU) and Vietnam will be signed in Hanoi. When implemented, EVFTA will be a huge boost for Vietnam’s exports, helping to diversify markets and exports, especially agricultural and aquatic products as well as numerous competitive Vietnamese products. The level of commitment in EVFTA can be considered the highest level of commitment that Vietnam has achieved in FTAs that have been signed so far.
It is forecasted that after the success of EVFTA, there will be more opportunities for pangasius exports, especially 2 main products: chilled fresh pangasius (HS 030432) and frozen pangasius (HS code 030462), taxes on these products will be reduced from 9% and 5.5% respectively to 0% after 3 years of EVFTA taking effect. Frozen pangasius (HS 030324) will be eliminated tax within 3 years from the current 8%.
According to ITC’s statistics, from 2018 to the Q1 of 2019, the average price of Pangasius imports in the Netherlands – Vietnam’s largest pangasius export market in the EU in the first 5 months of 2019, was fair, in which, pangasius products (HS 030432) priced from 7.9 – 9.2 USD/kg; pangasius products (HS 030324) fluctuated between 2.2 and 2.4 USD/kg.
In addition, pangasius exports to the UK also saw positive growth, in which, two groups of frozen pangasius (HS 030462 and HS 030272) are also being increasingly imported in this market.
The average import price of Pangasius of Austria, Denmark, Germany and Finland was also higher than other countries in the region.
Thus, the current advantages for pangasius in the EU as long as the positive change in tariff after EVFTA is believed to bring Vietnam pangasius even better growth. In addition to increasing high quality products, VAT, pangasius promotion in the EU, Vietnamese export enterprises also need to have specific strategies for each market.
|Pangasius import of EU in 2018-2019 (Thousand USD)|
- A gradual rise in An Giang’s pangasius export, pangaius in Vietnam meets international export demand
- Mard Recommended To Strengthen The Production Of Pangasius
- Free Trade Agreement Between Vietnam And EU, Creating Opportunities For Export Of Seafood
- Summary Of Pangasius Exports In The First 8 Months Of 2018
- Discussion – Difficult – Due To Resolution