The COVID-19 pandemic has had a significant impact on the export of Vietnamese pangasius to the European Union (EU). As of mid-May 2020, the total export value of Vietnamese pangasius to the EU had fallen by almost 36% compared to the same period in the previous year. Sales of pangasius in the European markets have seen consecutive drops in the first five months of 2020.
Declining Export Value
The export value of seafood going to single markets in the EU has seen a drop of 31.3% in the Netherlands, 31.7% in Germany, 16.9% in Spain, and 37.7% in Belgium from the previous year. The EU has been ranked as the fourth biggest Vietnamese pangasius importer, trailing China-Hongkong, the US, and ASEAN.
Impact of Covid-19
The novel coronavirus outbreak had a serious impact on pangasius exports to the EU market early this year, with a hard hit surge in March 2020. The prices of domestic pangasius material decreased as an inevitable trend when China, the core market of Vietnamese pangasius, became stagnant, resulting in a slump in export value of pangasius going to the EU.
Destination and Highlight of Exports
In the first five months of 2020, the Netherlands, Germany, Spain, and Belgium were the four biggest destinations of Vietnam’s pangasius companies. The Netherlands alone accounted for 30% of the total pangasius export value to the EU. The highlight of exports to this country was frozen breaded pangasius, frozen pangasius fillet, frozen pangasius steaks, frozen pangasius nugget, and whole fish.
Possible Future Slump in Value
Covid-19 continues to hit the European countries and has a serious impact on the economy in many countries. EU governments prepared for a scenario of a historically economic recession in May 2020. As forecasted, the exports of pangasius to the EU are expected to suffer from the consequences of the pandemic and face a possible and consecutive slump in value in the next few months.