IDI Finding Way to Export to the U.S.

22nd January 2022

Mr. Le Van Chung, General Director of I.D.I International Development & Investment Corporation (code IDI) says the company is promoting the procedures to export pangasius to the US market, which was previously the company's big market.

According to the Ministry of Agriculture and Rural Development, the pangasius export turnover in 2021 is estimated at 2 - 2.2 billion USD, continuing to affirm as one of the key export products of the fisheries industry. Currently, Vietnamese pangasius products are present in about 125 markets; in which China, the United States, the EU and ASEAN are the main markets. In which, the US has a market share of nearly 20%, China has a market share of 32% and the EU has a market share of 15%.

In the US, 70% of consumption channels are in the service sector (restaurants, hotels), the rest is retail. Data from Worldfishcenter shows that the service channel has recovered strongly to the pre-pandemic level.

Statistics of BIDV Securities Joint Stock Company show that, in the Top 5 largest pangasius exporters in Vietnam, Vinh Hoan currently exports to the US with a large market share. With Nam Viet, the Chinese and Thai markets account for about half of the market share. With IDI, the Chinese market holds 44% of the market share, followed by South American markets such as Mexico and Brazil.

The export price of Vietnamese pangasius is also constantly increasing. According to the Ministry of Agriculture and Rural Development, if in 2020, businesses exporting pangasius fillets to the US reached the price of about USD3.5/kg, in 2021 it increases to USD4 - 4.5/kg and more; In Asia and South America markets, the export price of pangasius is also quite good from USD3.5 to 4/kg, the highest price in the past decades. According to Mr. Le Van Chung, IDI's export contracts to South America currently reach the price of USD3.9-3.95/kg.

IDI has a large-scale export capacity to the US because the company has now mastered a closed production process: from breeding stock, pond, aquafeed, to a processing plant with modern technology, skilled workers, quality management system to ensure food safety and hygiene.

Since March 2016, when the Farm Bill came into effect, Vietnamese pangasius has been subject to product and farming area quality control from FSIS (Food Safety and Inspection Service under the US Department of Agriculture - USDA). With this requirement, in the value chain of enterprises, they must ensure that they have good breeding stock and standard farming areas to ensure the traceability of raw materials.

Since 2008, IDI has organized farming areas in a closed process. Currently, the company's own fish farming and associated farming area is nearly 200 hectares, meeting the standards of Global GAP, ASC, BAP. Farmers are provided with breeding stock, animal feed, biological products and are allowed to purchase output products. With the formation of such a large-scale associated farming area, IDI is completely proactive in supplying raw materials to frozen factories, creating finished products with competitive quality.

By Hung Anh, Vietnam Business Forum