Emerging New Key Market for Vietnam’s Pangasius

Brazil is rapidly emerging as a pivotal new market for Vietnam's pangasius industry, showcasing remarkable growth rates and immense potential. However, for Vietnamese pangasius to solidify and expand its foothold in this market, businesses must navigate and overcome significant challenges.

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The Vietnam Association of Seafood Exporters and Producers (VASEP) reports that catfish consumption in Brazil is rapidly growing as local dietary habits evolve. From the beginning of the year to mid-September 2025, Vietnam’s catfish exports to Brazil reached $122 million, a 51% increase compared to the same period last year. Brazil has emerged as one of the top three destinations for Vietnamese catfish.

Processing catfish for export.

However, VASEP notes that catfish exports to Brazil remain predominantly frozen fillets, with value-added products like breaded fish, fish cakes, or fish balls still underutilized. Meanwhile, Brazilian consumers are increasingly favoring ready-to-eat, convenient seafood options.

According to VASEP, the Free Trade Agreement (FTA) between Vietnam and Mercosur (the South American trade bloc comprising Brazil, Argentina, Uruguay, and Paraguay) is accelerating, with the initial phase expected to conclude by year-end. This is seen as a strategic opportunity for Vietnamese catfish to expand its market presence in Brazil and South America.

Nevertheless, Brazil’s geographical distance poses challenges, including high logistics costs and extended shipping times, which diminish the competitiveness of Vietnamese catfish. Additionally, Brazil’s stringent requirements for quarantine, traceability, and food safety necessitate that businesses adhere to international standards and comply with Brazil-specific regulations. Companies must invest in robust quality control systems, thoroughly research market nuances, and implement appropriate processes.

Furthermore, Vietnamese catfish faces fierce competition from tilapia and pollock, exerting significant price pressure on catfish products.

VASEP emphasizes that Brazil is solidifying its position as a key new market for Vietnam’s catfish industry, driven by impressive growth rates and substantial expansion potential. However, to capitalize on the opportunities presented by the Vietnam-Mercosur FTA, Vietnamese enterprises must proactively meet technical requirements, optimize costs, and invest in value-added products.

In the first nine months of this year, Vietnam’s catfish exports surpassed $1.6 billion, a nearly 10% increase year-on-year. The resurgence of demand in China, the U.S., and several Middle Eastern markets has further strengthened Vietnam’s position on the global seafood map.

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