Brazil becomes third-largest consumer of Vietnamese pangasius

According to data from Vietnam Customs, Vietnamese pangasius exports to Brazil reached over USD 12 million in the first month of this year, marking a 9% decline compared to the same period last year.

In January 2025, Brazil continued to import only frozen pangasius fillets, while value-added products (VAP) such as breaded fish, fish cakes, and fried fish balls have yet to establish a presence in this market. Several factors contribute to this trend: Consumer preferences; Supply chain limitations; Strict import regulations.

In January 2025, the export price of Vietnamese pangasius to Brazil declined by approximately 12-14%. Brazil remains focused solely on importing frozen fillets, while Vietnamese enterprises are striving to diversify their product offerings to enhance export value.

Furthermore, competition from other suppliers, such as Chinese tilapia and pollock from the U.S. and Peru, continues to intensify in the Brazilian market. These alternatives are available at competitive prices, placing significant pressure on Vietnamese pangasius exports.

A key development that could create a major opportunity for Vietnam’s pangasius industry is the initiation of negotiations for a Free Trade Agreement (FTA) between Vietnam and the Mercosur bloc, which includes Brazil, Argentina, Paraguay, and Uruguay.

If the FTA is signed, Vietnam stands to gain from reduced or eliminated tariffs on pangasius exports to Brazil, strengthening its competitiveness against rivals like Chinese tilapia. At present, Vietnamese pangasius remains subject to tariffs in Brazil, while exporters from other countries have already benefited from trade preferences.

The FTA with Mercosur would not only improve access to the Brazilian market but also open opportunities in Argentina and other member nations, enabling Vietnam to diversify its export destinations and reduce reliance on the U.S. and the EU. However, businesses must proactively capitalize on trade incentives and enhance product quality to meet import standards. With a well-executed strategy, Vietnamese pangasius has strong potential to expand its market share in South America.

Source: https://vietfishmagazine.com/