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Vietnam’s pangasius exports to the EU increased by 31.5% and EVFTA opened up new opportunities

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)
No Market Q1 Q2 Q3 Q4 2018 Q1/2019
1 Netherlands 13,185 18,128 17,024 12,045 60,382
2 UK 9,053 10,860 13,641 15,254 48,808 16,890
3 Germany 9,612 8,660 10,022 8,206 36,500 8,821
4 Italy 4,273 7,802 6,321 3,086 21,482
5 Belgium 4,316 5,592 4,959 6,058 20,925
6 Spain 2,586 6,281 5,852 4,750 19,469 6,579
7 France 3,452 3,800 3,979 3,216 14,447 5,170
8 Poland 2,885 2,086 3,188 4,454 12,613
9 Portugal 2,907 2,616 3,800 2,528 11,851 2,422
10 Austria 2,029 1,736 1,822 2,091 7,678
11 Greece 1,466 1,777 2,127 1,168 6,538 1,273
12 Hungary 1,553 1,269 1,589 2,032 6,443
13 Switzerland 957 2,279 776 806 4,818
14 Romania 1,171 993 942 1,253 4,359
15 Slovenia 942 797 747 1,073 3,559
16 Denmark 985 516 774 603 2,878
17 Czech Republic 401 312 748 619 2,080 416
18 Cyprus 248 694 708 312 1,962
19 Estonia 370 459 287 468 1,584 378
20 Lithuania 309 294 254 366 1,223 349
21 Slovakia 208 202 142 588 1,140
22 Croatia 433 223 151 245 1,052
23 Latvia 147 194 215 168 724
24 Finland 89 173 197 131 590
25 Bulgaria 92 59 200 102 453
26 Luxembourg 103 111 97 107 418
27 Malta 35 80 147 43 305
EU 63,807 77,993 80,709 71,772 294,281 42,298