The Korean market is still "strange" about Vietnamese pangasius


25/06/2019
In 2018, the export value of pangasius fish to the Korean market reached 5.75 million USD, up 28% compared to the same period last year. However, in the first 4 months of this year, the export value of this product to Korea decreased by more than 14% compared to the same period last year. So far, Korea is still a rather "strange" market for Vietnamese pangasius.

 

xuat_khau_ca_tra_sang_han_quocOver the past 8 years, the value of exporting pangasius to the Korean market has remained at average growth. Currently, South Korea is the 51st largest Pangasius export market of nearly 120 markets.

In May 2015, Vietnam and South Korea officially signed VKFTA. This agreement takes effect from December 20, 2015. With the agreed content, many experts believe that this Agreement will bring positive impacts to Vietnamese seafood exporters, especially shrimp and squid and octopus export. But in fact, the export of Vietnam's seafood products to the Korean market has not captured and taken advantage of preferential tariffs from this FTA.

With tra and basa fish products which are still not known by many consumers and importers, there is hardly any push of this FTA to help pangasius export to this market grow more. So far, the tastes of Korean customers remain loyal to seafood and shrimp products.

Koreans consume a lot of products: anchovies, shrimp, squid, tuna, Alaska Pollack, mackerel, yellow corvina, saury, hairtail, flatfish, monk fish, eels, rock fish and cod snow fish ... The success of the Korean industry's efforts to change consumers' perceptions of seafood (healthier than red meat) to diversify aquatic products Production, and to improve quality and develop processing technology will be the key in expanding domestic demand in the coming time. That is why, in recent times, the import rate of white meat products began to increase in the structure of seafood imports of the country.

Currently, the import rate of pangasius products of Korea only count 0.1 to 0.45% of the country's total import value. Meanwhile, the value of importing Alaska pollack fish products accounts for 59-62% of the total value of white meat imports. Russia and the US are the two largest sources of white meat products for the Korean market, accounting for 75% and 20% of the total import value respectively. Vietnam is the third largest source with the strength of frozen tra and basa phile products. Alaska pollack and Cod fish are two popular and popular white meat products in the Korean market. These are products that attract consumer tastes of this country.

As analyzed above, the perception of Korean consumers is gradually changing, customers are also beginning to look for seafood products that replace red meat products with many health benefits. Therefore, it is forecasted that there will be room for white meat fish products in the future, including Vietnamese tra and basa fish. Currently, the average import duty rate of Korea applied to fresh and chilled pangasius, pangasius (HS 030432) is 11.9% and frozen pangasius is 7.9. % Currently, the average import price of Pangasius products of Korea ranges from 4.4 to 4.95 USD / kg (according to ITC's calculations). Maybe in the future, exporting pangasius to this market will increase, but at present, Korea is still "strange" with Vietnam's tra and basa fish products.

(Source: VASEP)