Tra fish firms struggle to gain local market share

Ho Chi Minh City - Vietnamese tra fish have been exported to over 150 countries and territories, but its consumption in the local market has yet to rise. The lack of a distribution network and stores is one of the main causes of the limited consumption.

Employees process tra fish for export at a local business. Tra fish firms struggle to acquire bigger local market share – PHOTO: TRUNG CHANH

Many restaurants and hotels have tried serving a wide selection of tra fish dishes, but diners still hesitate to choose them, Chiem Thanh Long, general director of Binh Quoi Tourism Village, told a conference discussing ways to encourage the domestic consumption of tra fish.

The event was co-held by the Business Association of High Quality Vietnamese Goods and Business Studies and Assistance Center on December 10 in HCMC.

Because of the lack of a distribution network and stores, hospitality industry workers have to visit tra fish farms to gain an adequate supply of tra fish, or they must cooperate with tra fish businesses by pledging to purchase a large volume of the fish.

Therefore, it is important to develop tra fish distribution channels, so the fish can reach more local consumers, Long added.

Addressing the event, Pham Minh Thien, general director of Co May Company, said that tra fish and rice are among the staple products of the Mekong Delta region, but there are only a limited number of distribution channels and traditional markets offering tra fish in large markets such as HCMC, resulting in the fish’s heavy reliance on export activities.

Further, the consumption habits of local residents have challenged the sector to conquer the local market, the head of Co May stressed, adding that tra fish businesses should bolster promotion activities for the fish in the local market.

The Vietnamese are not aware of the high nutritional value and appealing taste of the fish, according to Pham Buu Viet, a representative of a riverside culinary firm in Can Tho City.

Meanwhile, consumers in the United States and Japan choose tra fish as it is nutritious.

Overall, to increase the local market share and domestic consumption of tra fish, experts at the event suggested that diverse recipes, cooking methods and marketing activities for the fish should be used, while raising the locals’ awareness of the fish’s nutritional value.

Downward swing forecast for local tra fish sector: VINAPA

The local tra fish sector this year will likely experience a downward trend in terms of production, farming area and export turnover, after achieving significant growth over the past two years.

Duong Nghia Quoc, chairman of the Vietnam Pangasius Association (VINAPA), predicted that the total production of tra fish in 2019 would be 1.23 tons, dipping 8% year-on-year.

New farm space for the fish reached an estimated 3,400 hectares during the year up to November, down 5% versus the year-ago period, and the figure for the whole year may drop as well, he noted at a forum on enhancing the export value of tra fish in line with the global market’s requirements, held on December 11 in the Mekong Delta province of Dong Thap.

Speaking at the event, Vo Hung Dung, vice chairman and general secretary of VINAPA, made the same forecast on the decreasing output and cultivation area, but he did not release specific figures.

Besides this, the prices of tra fish as an input material started to fall in the first months of the year and currently hover at some VND20,000 per kilogram. Earlier, they soared from VND29,000 in 2017 to VND30,000 in 2018.

According to the VINAPA vice chairman, export turnover of the fish may reach US$2 billion by end-2019, down 10% compared with last year’s figure. Of this, the export revenue in the January-October period dropped 10% year-on-year to exceed US$1.6 billion.