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| Pangasius export processing line. Photo: TTXVN |
According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is considered an important step for the seafood industry to “take off”, in which there is Pangasius catfish. The implementation of FTAs always creates favorable conditions for businesses to expand and diversify markets, bringing Vietnamese seafood, including pangasius, to participate deeperly into the global production and supply chain.
Citing statistics from the Customs sector, VASEP said that in the first half of June 2024, Vietnam’s pangasius export turnover to the CPTPP market reached 12 million USD, an increase of 23% compared to the same period in 2023. As of June 15, 2024, cumulative pangasius exports to the CPTPP market reached 114 million USD, up 10% over the same period. Of which, Mexico is the country that imports the most Vietnamese pangasius with a value of 31 million USD, an increase of 7%; Japan imported 18 million USD, up 35%; Canada imported 18 million USD, up 15%; Singapore imported 16 million USD, up 0.2% over the same period last year.
CPTPP takes effect in Vietnam from January 14, 2019. After 5 years of implementation, this new generation FTA has opened up opportunities for exporting Vietnamese pangasius to CPTPP market.
However, in the period of 2019-2023, the world is experiencing complex fluctuations, blockades due to Covid-19, embargoes due to war, and conflicts on transportation routes have created many challenges for Vietnamese pangasius. In order to get closer to countries in the CPTPP bloc.
2023 is the most difficult year in the past 10 years for pangasius exports, and CPTPP is no exception. However, compared to other markets, pangasius export turnover to CPTPP is still at an acceptable level in the general decline situation. In 2023 – 5 years after the CPTPP Agreement takes effect, pangasius exports to Canada reached 37 million USD, down 34% compared to 2022, and down 22% compared to 2018 – the year before the FTA took effect. Previously, in 2022, pangasius export turnover to Canada reached 56 million USD, an increase of 17% compared to 2018.
Agricultural, forestry and fishery exports in general, and pangasius exports in particular, are industries that are difficult to negotiate to achieve open-door commitments. However, in CPTPP, partners basically eliminate and cut taxes to 0% as soon as the FTA takes effect on most Vietnamese seafood products, including pangasius.
In 2024, when the inventory due to massive imports in 2022 is gradually depleted, pangasius exports begin to recover and prosper in some markets, including the CPTPP market block.
This market segment mainly consumes frozen pangasius fillets from Vietnam. Vietnam Customs data shows that in the first 5 months of this year, exports of this product to the CPTPP bloc reached nearly 89 million USD, up 6% over the same period last year, accounting for 87% of the proportion, and accounting for 15% of the total export value of Vietnamese frozen pangasius fillets to markets.
In addition, exports of other pangasius products to the CPTPP bloc also recorded growth in the first 5 months of this year. By the end of May 2024, the export value of frozen whole cut pangasius/whole butterfly cut pangasius, pangasius bubbles, etc, HS code 03 (except fish code HS 0304) reached 9 million USD, an increase of 20% over the same period, accounting for 9% of the proportion, and accounting for 7% of the total export value of this product to markets; Value-added pangasius exports to the CPTPP bloc reached nearly 5 million USD, an increase of 55% over the same period in 2023, accounting for 5% of the value and 37% of the total value-added pangasius exports of Vietnam to markets.
According to VASEP’s assessment, in the last 6 months of 2024, pangasius exports to the CPTPP bloc are expected to continue the increase of the first 6 months of the year when prices and demand are gradually stabilizing. In order to achieve this result, businesses need to improve their competitiveness, research the benefits that this agreement brings about in terms of tariffs to seize opportunities and increase exports.