The US accept the equivalent system: great opportunity of export of Vietnamese Pangasius

Recently, the US Department of Agriculture has officially recognized the equivalent of food safety control system (ATTP) of Vietnamese catfish to America. This is assessed to open great opportunities to increase pangasius exports to the US as well as many other strict markets.

Export of Pangasius is increasingly facing competition inmany markets.

Overcome difficulties

Over the past three years, Vietnam has made great efforts to perfect the system of legal documents; organizing propaganda and training for millions of farming households on hygiene and food safety in the entire process from producing, breeding, transporting, preliminary processingand exporting Pangasius into the US. It has alsocarried out many negotiations and field assessments on food safety control systems in production, processing and exportof Vietnamese catfish. As a result, on October 31, the US Department of Agriculture officially announced the decision to recognize the equivalent of Vietnam's catfish food safety control system for export to the United States.

Talking at apress conference on the morning of November 4, Deputy Minister of Agriculture and Rural Development Phung Duc Tien said: “The US is the largest and most difficult market for food safety. The equivalent of food safety control system is recognized by the US is an important condition to help boost the export of Pangasius to the US.”

Analyzing clearly opportunities in the US market for pangasius export, Mr. Nguyen NhuTiep, Director of the Department of Agro-Forestry-Fisheries Quality Management, Ministry of Agriculture and Rural Development, said that the US recognized equivalent of Pangasius food safety control system of Vietnam exported to the US affirmed its ability to control quality and food safety of Pangasius export and processing chain of Vietnam has met one of the most stringent requirements, helping Vietnamese Pangasiusaccess and expand export markets not only to the US but also other markets. In addition, Vietnam has been adding more businesses registering to export pangasius to the US (currently 13 enterprises) and creating more confidence for US importers. This helps increase production and export value of pangasius into this market in the last months of 2019.

“Meeting the requirement of equivalent of the US recognition will greatly contribute to the transformation of the pangasius farming industry from small production to large production on a systematic basis of control, from seed to final product, at the same time creating a foundation for the sustainable development of the fisheries sector,”Mr. Tiepsaid.

Along with the official recognition of equivalent of Pangasius food safety control system in Vietnam, one of the great news of Pangasius export to the US is the US Department of Commerce (DOC) announced the preliminary decision of the 15th anti-dumping tax review (POR15) for the period from August 1, 2017 to July 31, 2018, for Vietnamese Pangasius products in beginning of October.

Accordingly, Vinh Hoan and Bien Dong Companies maintain the tax rate of 0 USD/kg;addingtwo businesses will be considered to apply the tax rate of 0 USD/ kg, including NTSF Seafood Joint Stock Company and Can Tho Import Export Seafood Joint Stock Company - CASEAMEX. "Therefore, there will be four Vietnamese enterprises allowed to export pangasius to the US with the tax rate of 0 USD/kg, which will boost Pangasius export turnover to this market in the last months of 2019," Mr. Tiep said.

Worrying about fierce competition

Although receiving a lot of positive information about exporting to important markets in the US, however, ensuring a stable and sustainable export to the US or many other markets, there is a lot of work to do for theVietnamese pangasius industry.

According to regulations, after the equivalent recognition, the US Department of Agriculture continues to monitor and periodically re-inspect the Food Safety Control System of Vietnam Pangasius production and business chain. Therefore, in order to maintain the recognition and expansion of exports to the US and other markets, Vietnam needs to continue to review, perfect and implement the system of legal policies and organize the implementation of the food safety inspection program in producing and trading pangasius for domestic consumption and export.

Many years ago, Vietnamese pangasius was always "alone in the market", this situation has changed. Many markets have stepped up farming pangasius, it even possibly becoming a "formidable" competitor in the international export market in the near future.

MARD pointed out: According to statistics, Vietnam currently has 1.3 million tons of pangasius, India has 650,000 tons, Bangladesh 450,000 tons, Indonesia 110,000 tons. Even China – the leading Pangasius export market of Vietnam – has also raised and harvested 10,000 tons of Pangasius in Hainan. Pangasius products of these countries have participated in the export market, although they currently occupy a small market share, these countries' investment in increasing farming production will be an important competitive factor for Vietnamese enterprises. Therefore, the requirement is that the pangasius industry must change towards positive improvements from farming, processing, exporting, production and processing organizations in close association with market development to enhance capacity, expand markets.

Answering questions from Customs Newspaper’ reporters on competition pressure in exporting, Director General of Directorate of Fisheries Tran Dinh Luan said that:“With the pangasius industry, control system of Vietnam factory has been recognized by the United States, so we are confident that our capacity is much higher than other countries. Recently, the whole industry has stepped up processing and increased added value. Currently, there are nearly 100 products processed from pangasius, we took the initiative to be one step ahead, avoiding competition from conventional products.”

On Pangasius development, Minister of Agriculture and Rural Development Nguyen Xuan Cuong acknowledged: “The Pangasius industry with an area of ​​about 5,000 hectares, but the export turnover has reached US$1.8 billion and there is much capacity for development.”

However, Vietnam's pangasius industry still has some problems, the value chain linkage is not tight and the competitiveness is not high. To develop pangasius products, it is necessary to consider that the breeding stage is the great moment.

Along with that, the locality must strengthen the linkage in production, consumption, application of advanced technology, and added-value to take advantage of the US recognition of the equivalent of food safety control system of Vietnam's catfish exports to develop and expand markets, making an important contribution to the implementation of the project on restructuring agricultural sector.