The United Kingdom is a potential destination for increased volumes of Vietnamese pangasius, as it was one of only a few markets to import more of the farmed fish species this year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
VASEP reports that the UK imported 22% more Vietnamese pangasius in the first two months of 2023, while the country’s top 10 markets decreased their volumes by 18-50% over the same period.
As of mid-February, Vietnamese pangasius exports to the UK market had reached nearly US$7 million, accounting for 4.5% of the total export value. VASEP said that particularly in the first-half of February, pangasius exports to the UK increased by 142% year-on-year.
In 2022, the UK was one of the top six import markets for Vietnamese pangasius, with the trade totalling $64 million, up 24% compared with the previous year. However, this trade only accounted for 2.6% of the total.
VASEP highlighted that the UK has one of the highest inflation rates among major economies. In January 2023, its inflation rate was 10.1%, which was five times higher than the target set by the Bank of England.
The association explained that this inflation has changed UK seafood consumption trends. Instead of consuming more fresh/chilled seafood, today Britons are increasing their consumption of frozen seafood.
In the UK, people between the ages of 50 and 75 consume the most fish, spending up to £4 a week on fish products. Meanwhile, people under 30 spend an average of just £1.90 a week on fish, it said, adding that whitefish is an especially popular product, and each year the country imports between $800 million and $1 billion worth of products.
“Over the past year, Vietnam’s pangasius accounted for 5% of the UK’s total imports of whitefish. This proportion is likely to be higher in 2023, when the UK economy is still heavily affected by inflation, the war between Russia and Ukraine still limits the supply of cod and pollock to this market. Fish & chip dishes may have to use more pangasius and other whitefish as alternatives,” VASEP said.
It advised that the UK-Vietnam free trade agreement’s (UKVFTA’s) preferential tariffs “is also an opportunity for businesses to take advantage of”, especially in the context that importers want to find sources of competitively-priced goods.
“Therefore, along with China, the UK is also an optimistic destination for pangasius enterprises in 2023,” it said.
