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Exporting pangasius to Russia one year after the Russia-Ukraine conflict.

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(vasep.com.vn) In the first two months of 2023, Russia was among several markets experiencing negative growth in Vietnamese pangasius exports, due to the impact of inflation and decreased consumption.

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(Source: vasep.com.vn)

According to the trend, only a few markets managed to maintain positive growth in Vietnamese pangasius exports, such as Germany, Saudi Arabia, and the UK, while most of the major markets experienced a decline, including Russia.

In February 2023, pangasius exports to the Russian market reached nearly 2 million USD, a 40% decrease compared to the same period in 2022, accounting for 1% of the total value of Vietnamese pangasius exports to various markets.

In the first two months of 2023, Vietnam’s pangasius exports to the Russian market reached nearly 2.5 million USD, a 53% decrease compared to the same period in 2022, accounting for 1.4% of the total value of Vietnamese pangasius exports to various markets. The market share of Russia in the first two months of this year is higher than the same period last year (only 1%). Despite the decrease in pangasius exports to Russia in the first two months of the year, considering the inflationary context with decreasing demand and prices of exports, this is still a positive sign.

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(Source: vasep.com.vn)
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(Source: vasep.com.vn)

The Russia-Ukraine conflict since late February 2022 has greatly affected global trade, including Vietnam, causing transportation disruptions and difficulties in commercial transactions. Although the proportion of Vietnamese seafood exports to these two countries is not significant, the escalating tension has created chain-reaction repercussions, impacting seafood exports of various countries. Therefore, during March and April 2022, Vietnamese seafood exports to Russia came to a standstill, decreasing by 86% and 46% respectively.

However, if during the period of the Russia-Ukraine conflict, Russia faced sanctions and Vietnamese goods exported to Russia were also halted for three months, with some shipments having to be returned and businesses having to deal with inventory or find alternative markets, currently, one year after the Russia-Ukraine conflict, there are positive signs of recovery in Vietnam’s pangasius exports to the Russian market. Since the end of 2022, Russia has accelerated its import of Vietnamese pangasius.

In the context of inflation, the Russian market has not been significantly affected compared to Western countries. Russia is actively promoting seafood trade with other countries, including China, India, and Bangladesh. Vietnam’s seafood industry also competes to some extent with other countries, especially China, in the Russian market. Russia’s economy will rely more on China due to their shared border. However, Vietnam remains the number one source of pangasius supply in Russia.

The volume of pangasius exports to Russia is forecasted to slightly increase in the coming months. However, the overall trend suggests that pangasius prices in this market will decrease compared to 2022. Furthermore, Russia’s food price inflation is gradually cooling down each month, which will have a reducing impact on the prices of its seafood products.

According to statistics from Russia, from March 13 to March 19, 2023, the prices of primarily frozen fish products either decreased or remained stable. In the Far East, the price of Thai minh fish decreased by 2.1%, reaching 95 rubles/kg, while Pacific herring decreased by 3.2%, reaching 60 rubles/kg. The prices of snow crab and Pacific cod remained at the previous week’s levels, at 220 rubles and 70 rubles/kg, respectively. In the Northwest, Atlantic herring decreased by 3.1% to 93 rubles/kg, while the price of salmon remained unchanged at 167 rubles/kg.

Source: Thu Hằng – VASEP

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