VIETNAMESE TRA FISH CONTINUES TO THRIVE IN THE GLOBAL MARKET

Despite the challenges posed by the COVID-19 pandemic, Vietnam's tra fish export industry has demonstrated remarkable resilience. According to the Vietnam Association of Seafood Exporters and Processors (VASEP), the total export value of tra fish in 2021 is estimated at US$1.54 billion, a 3% increase compared to 2020. This growth can be attributed to the strong recovery of demand in major markets during the latter part of the year. Notably, China accounted for 28% of Vietnam's tra fish exports.

IDI secures significant orders from South America

In the third and fourth quarters of 2021, the US increased its tra fish imports by nearly 50% to compensate for the decline in other markets. IDI, in particular, achieved significant success in the South American market, capturing 22% of the market share in countries like Mexico and Brazil, where demand surged following the easing of pandemic restrictions.

One of the reasons for the growing popularity of Vietnamese tra fish is its high nutritional value. Rich in Omega-3, 6, 9, DHA, protein, and vitamins A and E, tra fish is considered a healthy food choice. Consumers appreciate its anti-bacterial properties, which are particularly beneficial during the ongoing COVID-19 pandemic.

The President of IDI (second from the right) discusses the nutritional benefits of Vietnamese pangasius with Western customers.

Success Often Comes with Unique Approaches

Mr. Huynh Van Hoa, a tra fish farmer in Can Tho, shared that in 2021, tra fish farmers faced numerous difficulties as exports were hindered by the pandemic, and rising logistics costs caused upheaval in the seafood industry, limiting their purchasing activities.

This led to an imbalance in supply and demand, with raw pangasius prices continuously plummeting (to around VND 17,000 - 18,000 per kg), falling below production costs while many farmers struggled to find buyers. Thousands of farming households in the Mekong Delta were on the brink of bankruptcy. However, Hòa and many other households who had partnered with IDI for years remained stable, as the company honored its commitment to purchasing at higher prices.

IDI took advantage of the social distancing period, maintaining its credibility with its linked farmers and sourcing additional raw fish from independent farmers at lower prices, accumulating a stockpile worth VND 1.4 trillion. This abundant supply and diverse product range allowed IDI to secure numerous contracts from other companies facing raw material shortages and container issues, enabling them to fulfill orders on time.

"If You Want to Go Far, Go Together"

The long-standing partnership between IDI and loyal farmers over the past 12 years has been further tested and proven effective during the challenging times of the pandemic, offering valuable lessons in collaboration.

After enduring hardship, Vietnam's pangasius industry is now poised for growth and new objectives. Leaders from the Departments of Agriculture and Rural Development of An Giang and Đồng Tháp provinces have emphasized the need to revive and develop the pangasius sector to compensate for the lost opportunities during the 4.5 months of pandemic restrictions. This requires comprehensive restructuring, with a focus on building and developing production and consumption chains, strengthening regional linkages, promoting digital technology in production, lowering production costs, and enhancing value-added products.

With an estimated total production of 910,000 tons, a 4% increase from 2020, the resurgence of pangasius farming in An Giang and Đồng Tháp provinces is evident, dominating both domestic production and exports. Large enterprises with their own farming regions and linked farming networks are also contributing to this growth.

"Local authorities need to align their vision and collaborate across production, processing, and export. The consensus among businesses is crucial in helping the pangasius industry recover and rise after the pandemic," emphasized Minister of Agriculture and Rural Development Lê Minh Hoan.