Photo: VASEP/FIS

Brazil Becomes Key Market for Vietnamese Pangasius, but Logistics and Quality Barriers Persist

BRAZIL
Wednesday, October 15, 2025, 06:10 (GMT + 9)

Exports Surge Past $122 Million as Vietnam Eyes Mercosur FTA for Sustainable Growth in South America

Brazil has emerged as one of the fastest-growing single markets for Vietnamese pangasius, ranking behind only the US and China, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). This rapid ascent underscores Brazil's potential, but Vietnamese exporters face considerable challenges related to logistics costs, technical barriers, and the need for product diversification to sustain growth.

Explosive Growth Driven by Changing Habits

The Brazilian market for fish consumption is expanding rapidly, fueled by a shift in culinary preferences toward seafood. Seafood Brasil estimated that average fish consumption per capita in Brazil was 12.2 kg in 2024, with projections for an increase to 12.6 kg in 2025. This upward trend creates a strong pull for affordable whitefish like pangasius.

Latest data from the beginning of 2025 through September 15, 2025, shows that cumulative pangasius exports from Vietnam to Brazil reached nearly $122.4 million, representing a significant 51% increase over the same period in 2024. This impressive momentum has cemented Brazil as one of the top three global destinations for Vietnamese pangasius.

However, the current product structure remains heavily focused on frozen pangasius fillets. Value-added products—such as breaded fish, fish cakes, or fish balls—account for a small share, despite Brazilian consumers increasingly favoring ready-made, convenient products. This gap highlights a key area where Vietnamese businesses must proactively adapt.

Strategic Opportunity: The Vietnam–Mercosur FTA

Amid a global shift toward protectionist policies and stricter regulations in traditional markets like the US and the EU, Brazil and South America represent a vital new direction for Vietnam's pangasius industry.

A strategic opportunity for expanding market share lies in the acceleration of negotiations for a Free Trade Agreement (FTA) between Vietnam and the Mercosur bloc, which includes Brazil, Argentina, Uruguay, and Paraguay. Brazil, as the largest economy in South America and a key Mercosur member, could become a gateway for deeper regional penetration. The Ministry of Industry and Trade plans to formally launch negotiations on the Vietnam–Mercosur FTA in the fourth quarter of 2025, a timeline that could provide a crucial competitive edge through tariff advantages against rivals like India and Thailand.

Persistent Challenges: Logistics, Technical Compliance, and Competition

Despite the market's potential, significant barriers challenge Vietnamese pangasius exporters. The immense geographical distance results in high logistics costs and long transportation times, which diminish the product’s price competitiveness. Furthermore, Brazil's stringent requirements for quarantine, traceability, and food safety certification compel businesses to comply not only with international standards but also with unique national regulations. This necessitates systematic investment in quality control systems and process optimization.

Competition is also fierce, particularly from Brazilian-produced Tilapia and imported Pollock. The strong domestic Tilapia industry, which is a major focus of Brazilian aquaculture, poses a direct threat, often benefiting from lower logistics costs and strong distribution networks. The lack of diversification away from frozen fillets further exacerbates the price pressure from these competitors.

To maximize the opportunity presented by the potential Vietnam–Mercosur FTA, Vietnamese enterprises must focus on meeting technical requirements, optimizing costs, and significantly increasing the proportion of value-added products to meet the evolving demands of the Brazilian consumer.

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