Sao Mai Group’s pangasius export segment embraces new opportunities

DNHN - IDI – a member of Sao Mai Group – is building its third factory, aiming to significantly enhance export capacity to capitalize on new opportunities in the U.S. market.

In the context of rising uncertainties over countervailing duties from the United States, many Vietnamese pangasius exporters remain confident that American consumers are not turning away from the product. Currently, IDI – a member of Sao Mai Group – is building its third factory, aiming to significantly enhance export capacity to capitalize on new opportunities in the U.S. market.

According to the Ministry of Agriculture and Environment, Vietnam's seafood export value in June 2025 is estimated at USD 950 million, bringing the total for the first half of the year to USD 5.16 billion – a 16.9% increase year-on-year. Shrimp and pangasius remain key products, generating USD 2.07 billion (up 26%) and USD 1 billion (up 10%) respectively.

In terms of market destinations, China, the United States, and Japan continue to be the top three, accounting for 19.6%, 18.2%, and 15% of export turnover respectively. Notably, exports to China surged 53.7%, to the U.S. by 22.8%, and to Japan by 9.1%. Brazil also emerged with a remarkable 71.3% growth, opening up new development prospects for Vietnam’s seafood industry.

However, while growth trends are promising, the U.S. market – which contributed nearly USD 900 million in the first half of the year – poses significant challenges due to pressures from countervailing duties. Since June, many exporters have proactively suspended shipments to avoid high tariffs.

To meet the annual target of USD 10.5 billion, the industry needs to earn an additional USD 5.4 billion in the second half of 2025 – equivalent to over USD 900 million per month. This goal remains highly challenging amid ongoing global geopolitical tensions, trade policy shifts, and increasing protectionism in major importing countries.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the industry must focus on three pillars in the second half of the year: market adaptation, quality improvement, and sustainable supply chain development.

While the shrimp segment faces risks of double taxation, pangasius exports are expected to thrive after the U.S. Department of Commerce (DOC) announced a 0% anti-dumping duty rate for seven Vietnamese exporters under the 20th administrative review (POR20) – a significant breakthrough for regaining growth momentum in the U.S., the second-largest market.

IDI – A Key Member of Sao Mai Group, Stands at the Brink of Opportunity

At home, I.D.I Investment and Development Corporation (IDI – HOSE: IDI) is consistently ranked among the top four exporters of frozen pangasius in Vietnam. As a key subsidiary of the multi-sector Sao Mai Group – which is active in real estate, services, and most notably aquaculture and seafood processing – IDI plays a strategic role in the group’s seafood export growth.

This year, IDI sees new opportunities ahead and has set ambitious business targets: VND 8,000 billion in revenue and VND 170 billion in net profit – increases of 12% and 134% respectively compared to last year.

IDI emphasized that pangasius remains a staple demand globally due to its ease of farming, nutritional value, and low cost. As global economic conditions remain uncertain, pangasius serves as a preferred alternative to higher-priced proteins.

In 2024, IDI exported to over 150 clients in 48 countries and territories. Mexico accounted for nearly 25%, and China over 22% of total export revenue over the past two years. However, due to intensifying competition and shrinking margins in China, IDI is shifting its focus toward new markets and reducing reliance on the Chinese market.

This year, IDI identifies the U.S. and South America as increasingly attractive markets. IDI is among the exporters benefiting from a low anti-dumping duty of USD 0.18/kg (POR19), according to the U.S. DOC. This favorable tax rate offers a competitive edge in the U.S. market. Additionally, demand for white fish, particularly Vietnamese pangasius, is rising among American consumers due to its mild taste and versatility across processed formats—from fillets and frozen products to ready-to-eat meals.

The decline in supply of other white fish species, such as tilapia, is another positive signal for pangasius exporters targeting the U.S.

Further optimism stems from ongoing discussions in the U.S. about granting Vietnam market economy status, which could benefit many industries, including seafood – particularly pangasius.

Since the U.S. announced new countervailing tariffs in April, the seafood sector, especially pangasius, has been under pressure. Exporters accelerated shipments before the July 7 deadline to benefit from lower tax rates, evidenced by a steady rise in monthly export volumes leading up to that date.

VASEP noted that in response to the uncertain U.S. duty environment, many pangasius exporters had already prepared in terms of business strategy and market positioning. Despite potential tariffs, industry experts and business leaders remain optimistic that American consumers will continue supporting pangasius.

Even with the possible tax increase, final prices may range from 50–60 cents per pound – still significantly lower than alternative white fish like cod or pollock. This price competitiveness is vital as U.S. consumers become more budget-conscious post-pandemic and amid ongoing inflation.

“In fact, pangasius used to sell for higher prices, and the U.S. market still consumed well. This indicates that, with a well-organized and flexible supply chain, the new post-tariff prices can still be absorbed,” said VASEP.

It’s also noteworthy that pangasius is gaining firm ground in American households beyond Asian communities, penetrating broader consumer segments. According to VASEP, this reflects the product’s strong connection with consumers and suggests that price hikes are not an insurmountable barrier.

IDI’s Preparations

IDI is actively strengthening its financial capacity and production output to boost pangasius exports to the U.S. Earlier this year, it broke ground on the U.S. Seafood Processing Plant, its third factory, with a total investment of nearly VND 700 billion. The plant will have a processing capacity of 120 tons/day, with an estimated annual output of 20,000 tons of frozen fillets. The construction timeline is 12 to 14 months. Upon completion, IDI’s total processing capacity will exceed 500 tons/day.

“The plant, expected to be completed in Q1/2026, will significantly boost export capacity amid an increasingly open U.S. market and rising global food demand,” the company said.

The construction is funded by a VND 1,000 billion green bond issuance launched in October 2024 – the first of its kind in Asia’s aquaculture sector. Backed by a 100% payment guarantee from GuarantCo, IDI issued the bonds at a record-low interest rate, attracting strong interest from institutional investors and expanding its access to the domestic debt market.

Additionally, in the U.S., IDI has secured a strategic partnership with PATAGONIA CUISINE LLC, based in Atlanta, Georgia, to grow its presence in the American and South American markets. Both parties agreed to co-develop the “IDI brand” in the U.S., strengthening the company’s journey in this vital market.

Moving forward, IDI will continue to invest in a closed-loop aquaculture production chain, expedite the U.S. Seafood Processing Plant project, and develop the Sao Mai High-Tech Aquaculture Breeding Center. At the same time, the company is focusing on expanding exports, particularly to potential markets in North America, Europe, and East Asia.

Minh Hang