Vietnamese pangasius is a white-fleshed fish that is “popular” with consumers in many markets around the world. However, the diversified market has seen more and more competitors competing with Vietnamese pangasius in terms of quantity, supply, price, etc., such as cod, Alaska pollock, hake, tilapia, etc., including Chinese snakehead.

Competitive advantage of Chinese snakehead compared to imported pangasius from Vietnam

Snakehead fish and Pangasius have similarities in texture, flavor, and culinary applications, making both fish popular in Chinese cuisine. Both fish have white, firm meat, mild flavor, and are rich in protein, and have their own competitive advantages, serving each consumption need.

Biological characteristics and farming: Pangasius is a freshwater fish, growing well in water with gentle currents and low oxygen content, suitable for intensive farming. Vietnam is the world's largest pangasius farming and exporting country, with farmers mainly raising large ponds, using industrial feed, and strictly controlling water quality. Average time to raise pangasius: 6-8 months to reach commercial weight of 0.8-1.2 kg/fish; Snakehead fish are widely distributed in rivers, lakes, and rice fields in China. This fish is mainly raised in natural ponds or reservoirs, with moderate density. Fish eat natural food or supplement with fresh fish or industrial food. The average rearing time is from 8-12 months to reach a commercial weight of 1-1.5 kg/fish.

Regarding nutritional value: Vietnamese pangasius has a fat content of 6-10%, especially containing omega-3 unsaturated fatty acids. Pangasius has soft, white meat, suitable for frozen processing or making value-added products (fillets, fish pieces, fish cakes). Vietnam's main pangasius export product is frozen pangasius fillets; Chinese snakehead fish has a high protein content (18-25%), less fat than pangasius. Snakehead fish meat is firm, fragrant, and is popular in traditional dishes such as grilled fish, braised fish with pickled cabbage, especially soups and hot pots, helping to increase consumer acceptance thanks to its affordable price and familiarity.

Regarding export potential: Vietnamese pangasius is a key export product, accounting for a large market share in international markets such as the United States, EU, China, and Southeast Asia. The export value is high thanks to large production scale and quality standards (ASC, BAP, HACCP). The average price of frozen pangasius fillets (the main product of pangasius exports) is from 2.5-3 USD/kg; In China, farmed snakehead fish is more dominant than imported pangasius, mainly serving domestic consumption and some neighboring markets (East Asia, Southeast Asia). The average price of whole fresh snakehead fish is 4-5 USD/kg. China's snakehead fish farming output is expected to reach 800,000 tons by 2024, of which 40% is for processing facilities and the rest serves the live fish market. Some Chinese enterprises are now applying tilapia processing methods to snakehead fish production, targeting the Asian market with value-added products.

Trends and development potential

Vietnamese pangasius has a reasonable price, stable supply, suitable for large markets. However, export value is easily affected by trade barriers and fluctuations in the international market; Meanwhile, Chinese snakehead fish also has delicious meat, high nutritional value. However, snakehead fish has a high price, limited farming scale and competitiveness in the international market, suitable for domestic and regional tastes.

As of November 15, 2024, Vietnam is still the world's No. 1 pangasius supplier and China is still the largest destination for Vietnamese pangasius exports. According to Vietnam Customs, in the first half of November 2024, the export turnover of Vietnamese pangasius to China reached 27 million USD, an increase of 36% over the same period last year. Cumulative pangasius exports to this market as of November 15, 2024 reached 506 million USD, down 1% compared to the same period in 2023.

Both Vietnamese pangasius and Chinese snakehead fish have their own advantages in terms of quality, nutritional value, price, consumption market, serving different needs. The scenario of China being self-sufficient in snakehead fish to gradually replace imported pangasius from Vietnam is completely conceivable, and this will be a concern when this billion-people market is the largest customer of the Vietnamese pangasius export industry.

The development of domestic snakehead fish in China is taking place in parallel with the country reducing pangasius imports from Vietnam. In 2020, the volume of frozen pangasius fillets imported from Vietnam by China decreased from more than 200,000 tons to 106,000 tons in 2023, and only reached 51,000 tons in the first 8 months of 2024. Since 2020, the volume of pangasius imports has continuously decreased, with 2023 and 2024 recording lower import levels than during the COVID-19 pandemic. Of course, in addition to the increase in domestic snakehead fish production, there are many other reasons for China to reduce pangasius imports, such as the country's economic growth slowing down.

Competitors of Vietnamese pangasius are growing and getting stronger. For pangasius alone, many countries have now joined the race to raise and export pangasius. Vietnamese pangasius is no longer “alone in the market”, so it is necessary to further enhance its competitiveness in the market by increasing quality, reducing costs, and ensuring absolute compliance with food safety and hygiene regulations.

Source: VASEP