Vietnam Association of Seafood Exporters and Producers (VASEP) has expressed a cautious optimism about sales of pangasius in 2022, as challenges caused by the COVID-19 pandemic will continue to face the industry in the new year.
The higher costs of production, and higher export costs coupled to uncertain demand in key markets, are the main obstacles the industry will face this year, according to VASEP General Secretary Truong Dinh Hoe.
Vietnam’s pangasius industry had to deal with “unpredictable difficulties” in 2021 as the fourth outbreak of COVID-19 severely disrupted the industry’s production and export activities. Starting in the third quarter, pangasius producing provinces and cities in the Mekong Delta underwent strict and prolonged lockdowns to curb the spread of COVID-19, directly affecting the entire supply chain – from farming to processing and exports.
In addition to the supply chain impacts, companies were required to implement a “3-on-site” model, meaning workers had to work, eat, and sleep within the premise of their plants, causing further costs for the producers.
Meanwhile, freight costs have risen by between eight and 10 times compared to a year before.
The combined challenges have pushed down the export value of pangasius by 21 percent year-on-year to USD 295 million (EUR 261 million) in the third quarter.
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https://www.seafoodsource.com/news/supply-trade/vietnam-cautiously-optimistic-about-pangasius-exports-in-2022