Mexico - Vietnam's potential pangasius export market

DNHN - It is forecasted that in 2022, Vietnam's pangasius exports to the Mexican market will bring in about 125 million USD, an increase of 80% compared to 2021.

Information from the Vietnam Association of Seafood Exporters and Producers, from the 4th position in Vietnam's pangasius import markets in 2021, this year Mexico has risen to the 3rd market, after China and the US. In the first 7 months of 2022, pangasius exports to this market grew by 73% to reach 73.5 million USD, accounting for 4.5% of Vietnam's pangasius exports.

After a sharp increase in the first half of the year, from July 2022, pangasius exports to some key markets such as the US began to slow down because inventories were increasing, consumption also slowed, and fish prices showed signs of decline. However, pangasius exports to Mexico still maintained a high growth rate in July: more than doubled over the same period to over 11 million USD.

In the first 7 months of this year, frozen pangasius fillets exported to Mexico accounted for 94% of the value with $69 million, and sliced ​​pangasius accounted for 6%, reaching $4.4 million. The average price of frozen pangasius fillets exported to the Mexican market in the first half of this year was 2.8 USD/kg, 63.5% higher than the average price of 1.71 USD/kg in the same period in 2021.

In 2022, up to this point, inflation in Mexico has reached a record high of 22 years. Mexican consumers must consider and reduce spending on high-priced food products. With the advantage of competitive prices, plus preferential tax benefits under the CPTPP, Vietnamese pangasius is still a stable choice for Mexican seafood importers.

In the context of the USD appreciation against many other foreign currencies is a challenge for exporters. In some markets where the local currency depreciates, importers suffer losses, so they will balance their import plans. Even, there has been a situation where importers “bargain to lower prices” or ask Vietnamese exporters to delay delivery, causing exporters to incur additional storage costs.

However, according to experts, for the Mexican market, the appreciation of the US dollar is good news because Mexico is one of the few countries that receive a huge number of remittances from the US. Therefore, food consumption in this market will also be less affected than in other markets.

Before those advantages, many pangasius exporting enterprises also shifted from some other markets to Mexico. In the first half of this year, there were 30 Vietnamese seafood enterprises exporting pangasius to Mexico. It is forecasted that in 2022, Vietnam's pangasius exports to the Mexican market will bring in about 125 million USD, an increase of 80% compared to 2021.

PV