The market is not stable.
Europe and USA are the two main consuming market of Vietnamese aquaculture exported. The crisis occurred in USA has influenced the European market. The American investors drawn out the money invested in Europe. Due to this fact, the EUR and British Pound have lost their value, so many European importers have lost their money. Consequently, the global export and Vietnamese Pangasius export are now facing a lot of difficulties.

EU is still the leader of consuming markets of Vietnamese aquaculture exported. However, the exporters in EU are now lack of money used for ordering because the banks do not act as guarantees for them. Russia and Ukraine are covering the second and the third position in the best Vietnamese Pangasius importers. If only the individual importing countries are considered, Russia is the best with 155.6 million USD of aquaculture imported. This number is increasing by 118% compared with the same period last year. The second is Ukraine with 104.7 million USD. The value increases by 225%. However, these two markets have stopped importing because the banks are not supporting them anymore. Actually, not only Russia, Ukraine, Poland or EU but also all of the countries in the world are facing difficulties.

Either farmers or enterprises are facing problems.
Vietnamese Pangasius is in 80 countries and areas but in fact, there are just 3 main markets: USA, EU and Eastern Europe. These cover 80%. Nowadays, the conditions of the market are too hard for these 3 markets. Consequently, Vietnamese Pangasius exporting is seriously influenced. Mr. Duong Hoang Manh, president of board of directors/CEO of Aquaculture Mekong stock company, said that the global financial crisis was truly influencing Vietnamese Pangasius export. Every consuming market is closed.

In about 1 month, the price of material Pangasius in Mekong Delta has been quickly reduced. The farmers are losing about 1,000 – 2,000 VND per kilogram. However, because the fish is now large enough to sell and the spending on food and medicine is too high, the farmers can not keep farming. So the farmers have to sell the unsold fish and lose their money.

Actually, the price of fish is reduced because the price of products exported is too low nowadays in stead of the redundant material like before. Besides, many enterprises still cannot export so they do not focus on buying to help the farmers.

Nowadays, the processing enterprises, which are mainly influenced by the crisis, have to cop with difficulties. Mr. Luong Hoang Manh said: “Recently, the enterprises do not sell all of their unsold fish. If this situation continues, the pressure on the enterprises is very great. Especially, in the market nowadays, the enterprises not only face the marketing problem but also have to deal with being lack of money invested. Until the end of the year, if the domestic banks do not ease the credit, some enterprises will be collapsed for sure”.

What is the solution?
The financial crisis in USA has been influencing Vietnamese Pangasius export. The consuming in USA and Europe is running down. Although these are the two main consuming markets of Vietnamese Pangasius export, nowadays, if the enterprises still sit and wait for the crisis to pass away, they and the importers in USA and Europe will die together. It is surely impossible. Some enterprises have found out other consuming markets. Some markets, which did not use to be focused such as South America, Middle East, Africa, etc., are the target markets of Vietnamese Pangasius export. According to Vinh Hoan Corp, in the Conxemar 2008 fair in Vigo, Spain, in the beginning of October 2008, besides Germany, England, France, etc., they are aiming at some new markets such as Middle East, South America, etc. Right in this fair, Vinh Hoan Corp has sign a contract with Egypt to export large quantity of filleted Pangasius to this nation – a brand new partner of the company.

Vinh Hoan Corp is right when choosing the way. It has not only raised the quantity of Pangasius exported of the company but also built up the conditions to let Pangasius be more popular in the world. Besides, focusing on domestic markets is a safe and effective solution for processing Pangasius enterprises. In fact, the aquaculture import and export An Giang Joint Stock Company (Agifish) has tried on this way. However, the Pangasius is still not sold widely in Vietnam. Nowadays, the unsold Pangasius should be sold in domestic market and the enterprises should also consider this market as a potential one.

Source: Viet Nam Seafood