Brazil has emerged as one of the fastest-growing single markets for Vietnam’s pangasius exports, trailing only behind the United States and China. This market presents vast potential for expansion, yet Vietnamese exporters continue to face challenges related to logistics costs, technical barriers, and Brazil’s distinct regulatory standards—all of which directly affect competitiveness and sustainable growth.

Brazil Rises Among Leading Single Markets

Fish consumption in Brazil has been rising rapidly, driven by changes in local dietary habits. According to Seafood Brasil, per capita fish consumption reached 12.2 kilograms in 2024 and is projected to increase to 12.6 kilograms in 2025.

From early 2025 to September 15, 2025, Vietnam’s pangasius exports to Brazil totaled USD 122.4 million, a year-on-year increase of 51%. With such impressive growth, Brazil has become one of Vietnam’s top three export destinations for pangasius.

However, the product structure of pangasius exports remains heavily concentrated in frozen fillets, while value-added products such as breaded fish, fish cakes, and fish balls account for only a small share. Meanwhile, Brazilian consumers are increasingly favoring ready-to-eat and convenient products. Although Brazil offers great opportunities for Vietnamese pangasius, the market also presents several challenges that exporters must actively address.

Momentum from the Vietnam–Mercosur FTA Negotiations

As global trade trends toward stronger protectionism and heightened technical barriers in traditional markets such as the United States and the European Union, Brazil and the broader South American region are emerging as strategic alternatives for Vietnam’s pangasius exports.

The ongoing negotiations for a Free Trade Agreement (FTA) between Vietnam and the Mercosur bloc—which includes Brazil, Argentina, Uruguay, and Paraguay—represent a key opportunity to expand market access. As the largest economy in South America and a core member of Mercosur, Brazil could serve as a gateway for Vietnamese pangasius to penetrate deeper into the region. The outlook is promising, with Vietnam’s Ministry of Industry and Trade expecting to officially launch FTA negotiations with Mercosur in Q4 2025.

Addressing Logistics, Technical, and Product Diversification Challenges

Despite Brazil’s strong potential, Vietnam’s pangasius exporters continue to face several obstacles. The long geographical distance results in high logistics costs and extended shipping times, undermining product competitiveness. Additionally, Brazil’s strict requirements for quarantine, traceability, and food safety certification demand not only compliance with international standards but also adaptation to the country’s specific national regulations.

To overcome these challenges, Vietnamese enterprises must invest in robust quality control systems, gain a deep understanding of market characteristics, and tailor their operations to meet local expectations.

Furthermore, fierce competition from tilapia and pollock exerts strong downward pressure on prices. Competitors enjoy advantages in logistics efficiency and established distribution networks, while Vietnam’s limited range of value-added pangasius products prevents its export earnings from reflecting the sector’s full potential.

Brazil is solidifying its position as a key growth market for Vietnam’s pangasius industry, offering both strong momentum and vast room for expansion. However, to fully seize these opportunities—especially once the Vietnam–Mercosur FTA is signed and implemented—Vietnamese exporters must proactively comply with Brazil’s technical standards, optimize costs, and invest in value-added processing to ensure long-term competitiveness and sustainable growth.

Source: VASEP