Despite being hailed as the “export king” and generating billions of dollars annually, pangasius still struggles to gain a foothold in the domestic market. In fact, only about 5-7% of total production is consumed locally.

According to data from Vietnam Customs, by July 15, pangasius export turnover had exceeded USD 1.1 billion, marking an 11% increase compared to the same period in 2024. Several markets have seen remarkable growth: Brazil up 73%, Malaysia 33%, Thailand 32%, and the US 12%.

While pangasius has carved out a strong position globally and earns billions in export revenue each year, domestic consumption remains modest - only 5-7% of total output.

The Vietnam Association of Seafood Exporters and Producers (VASEP) identifies several reasons for this. Most pangasius farming and processing is geared towards exports. Domestic offerings are limited to whole fish or simple fillets, with minimal investment in packaging and branding.

Additionally, domestic pangasius prices are 30-40% lower than export prices, reducing incentives for companies to expand local distribution networks.

Local consumer habits and perceptions also present challenges. Many households still prefer familiar freshwater fish like snakehead, carp, or climbing perch over industrially farmed pangasius.

In contrast, countries like Thailand have achieved sustainable tilapia farming by ensuring 60% of production is consumed domestically. This success is partly due to policies that integrate fish into school, hospital, and military meal plans. In India, with a population of 1.4 billion, freshwater fish is a dietary staple, providing stability to the aquaculture sector regardless of export fluctuations.

With a population nearing 100 million and rising average income, Vietnam’s growing preference for convenience and health-conscious eating presents clear potential for pangasius as a strategic food source. Some companies have already begun diversifying their product lines, launching items like fish cakes, fish balls, and packaged fish noodles aimed at young consumers, students, and workers.

However, VASEP notes that truly transforming the domestic market into a reliable foundation for the pangasius industry will require action from both government and business. The government should consider incorporating pangasius into school meals, launching consumer stimulus programs for seafood, or even initiating a national media campaign to shift public perception. On the corporate side, businesses must focus on improved packaging, deep-processed product diversification, and branding that highlights nutrition and convenience.

“If we can achieve this, pangasius could become a staple on Vietnamese dining tables,” VASEP affirmed. “It’s time Vietnam pays more attention to the domestic market amid export uncertainty and global volatility.”

PV