Vietnam’s pangasius exports to Brazil gain momentum but face mounting hurdles

Brazil’s pangasius imports from Vietnam are surging, but logistical and regulatory hurdles remain a drag on growth.

Consumption growth 

Seafood consumption in Brazil is climbing steadily as dietary habits evolve. According to Seafood Brasil, per capita seafood intake reached 12.2 kilograms in 2024 and is projected to rise to 12.6 kilograms in 2025.

From January to mid-September 2025, Vietnam’s pangasius exports to Brazil totaled nearly USD 122.4 million, up 51% year-on-year, placing Brazil among Vietnam’s top three export destinations. However, exports remain dominated by frozen fillets, while value-added items such as breaded pangasius, fish cakes, and fish balls still account for a limited share, a mismatch with Brazil’s growing appetite for processed and ready-to-eat seafood.

Mercosur FTA 

With the US and EU tightening technical barriers, South America, particularly Brazil is emerging as a strategic alternative for Vietnamese exporters.

The planned launch of Free Trade Agreement (FTA) negotiations between Vietnam and Mercosur which includes Brazil, Argentina, Uruguay, and Paraguay could be a game changer. As South America’s largest economy, Brazil could serve as a gateway for Vietnamese pangasius to deepen its regional reach.

Vietnam’s Ministry of Industry and Trade is expected to begin formal FTA talks in the fourth quarter of 2025. The agreement could unlock tariff reductions, improve competitiveness, and enhance market access across the Mercosur bloc.

Logistics bottlenecks

Despite the momentum, Brazil remains a challenging destination. Long shipping distances drive up freight costs and transit times, eroding price competitiveness. Moreover, Brazil enforces strict standards on quarantine, traceability, and food safety requiring Vietnamese suppliers to not only meet international benchmarks but also navigate country-specific rules.

Competition from tilapia and pollock, which enjoy lower logistics costs and established distribution channels, adds further pressure. Limited product diversification and low value-added processing continue to cap export value growth.

With its expanding seafood demand and robust market size, Brazil holds significant promise for Vietnam’s pangasius sector. But to capitalize on future opportunities, particularly under a potential Mercosur FTA, exporters will need to strengthen compliance systems, improve logistics efficiency, and invest in higher value-added processing.

Developing adaptive supply chains and aligning closely with Brazil’s quality and regulatory standards will be key to securing sustainable, long-term growth in this increasingly important South American market.

Source:  https://vietfishmagazine.com/