Photo: VASEP/FIS

Vietnam's Pangasius Paradox: A Global Export Powerhouse Overlooking Its Own Domestic Market

VIET NAM
Wednesday, May 21, 2025, 01:30 (GMT + 9)

Despite Booming International Sales, Pangasius Struggles for Prominence on Vietnamese Dinner Tables, Highlighting Untapped Potential and the Need for Strategic Repositioning.

Hanoi – Pangasius, a cornerstone of Vietnam's seafood exports and a significant contributor to the national economy, faces a curious paradox: while hundreds of thousands of tons annually reach dining tables in over 140 countries, the fish struggles to find a "worthy position" in its homeland. This discrepancy, highlighted by Ms.Thu Hang, editor at the Vietnam Association of Seafood Exporters and Producers (VASEP), raises critical questions about whether the lucrative domestic market is being overlooked and why an internationally standardized product remains "inferior" in its country of origin. Industry experts believe that with the right investment, the domestic market could become a vital pillar for the pangasius industry's sustainable development.

Unlocking Domestic Potential: An Overlooked Opportunity

With a population exceeding 100 million, a youthful demographic, and a rapidly expanding middle class, Vietnam presents one of Southeast Asia's most dynamic consumer markets. Demand for high-quality, convenient, and food-safe products is on the rise, particularly in major urban centers like Ho Chi Minh City, Hanoi, Da Nang, and Can Tho.

Pangasius, with its inherent advantages – reasonable price, rich nutritional value, minimal bones, ease of preparation, and stringent quality control throughout farming and processing – is ideally positioned to meet these domestic consumption needs. Furthermore, many value-added pangasius products now rival the quality of imported fish but come at a significantly more competitive price point.

The shift in consumer habits post-COVID-19 also presents a substantial opportunity. Consumers increasingly prioritize products with extended shelf life, easy preparation, hygienic packaging, and traceable origins. These attributes align perfectly with the strengths of frozen pangasius and its processed variants.

Pangasius's Absence in the Modern Retail Segment

Despite its clear potential, pangasius is conspicuously absent from modern consumer life. In large supermarkets, imported options like Norwegian salmon, cod, and other white-fleshed fish often command prime display space at seafood counters. Pangasius, if available, is frequently relegated to obscure corners, with unappealing packaging, limited information, and little visual allure.

More critically, the lack of strong domestic pangasius brands erodes consumer confidence and commitment. While some export-oriented businesses have made tentative entries into the domestic market, these efforts often remain at a trial scale, lacking the long-term, professional, and systematic strategic approach needed for sustained success in this segment.

The Market Awaits a "Repositioning"

For domestic pangasius to flourish, a fundamental repositioning of its image in the eyes of Vietnamese consumers is essential. This goes beyond mere packaging redesign; it necessitates communicating a compelling narrative about a product that is "proudly Vietnamese"—farmed and produced using modern technology and adhering to rigorous global standards.

This is the opportune moment for businesses to invest in building high-end, contemporary domestic pangasius brands targeting new segments:

• Premium Convenience Food: Offering pangasius products that are pre-sliced, pre-seasoned, vacuum-packed, and ready for quick preparation in 5-10 minutes.
• Nutritional Food for Children and the Elderly: Capitalizing on pangasius's low bone content, high protein, and soft texture, making it ideal for nutritional supplements.
• "Healthy" Product for Dieters/Clean Eaters: Positioning pangasius as a perfect ingredient for low-carb, keto, and DASH diets.

Building a systematic brand ecosystem—encompassing identity, communication, and after-sales service—will be key to establishing pangasius's enduring place in Vietnamese households. More importantly, it will help challenge the perception of pangasius as merely a "popular dish" and cultivate a positive, modern image befitting the industry's significant achievements.

Leadership from Enterprises and Associations is Crucial

The journey to conquer the domestic market cannot rely on individual enterprise efforts. It demands a comprehensive strategy coordinated by management agencies and industry associations, pooling the vision and resources of the entire sector.

The Vietnam Association of Seafood Exporters and Producers (VASEP) is well-positioned to lead a "Vietnamese people use Vietnamese fish" campaign, specifically targeting pangasius products. This initiative must extend beyond a mere slogan, supported by tangible activities such as:

• Organizing "Pangasius Weeks" in modern supermarket chains and traditional markets.
• Collaborating with renowned chefs to develop creative pangasius menus appealing to younger consumers.
• Partnering with KOLs (Key Opinion Leaders) and influencers in culinary and healthy eating fields to disseminate a positive image of pangasius across social media.
• Developing a transparent QR code-based traceability system to enhance consumer confidence.

On the business front, a shift in mindset is required from "selling is good" to "building sustainable relationships with domestic customers." The success of many domestic F&B startups focusing on high-end local product chains—like fish cakes, fish balls, and lemongrass steamed fish, all using pangasius—demonstrates a viable pathway. These examples can serve as a foundation to expand the domestic consumption ecosystem and effectively communicate the true value of Vietnamese pangasius.

Domestic Market: A Stable Cushion in Volatile Times

Pangasius exports are increasingly susceptible to external variables: technical barriers, exchange rate fluctuations, shifting import policies in major markets, and the recent impacts of geopolitical crises and reciprocal tariffs. In this unpredictable environment, a robust domestic market acts as a vital "safety cushion," helping businesses stabilize cash flow, maintain production, and mitigate risks from the international market.

Furthermore, if developed strategically, the domestic market can serve as a testing ground for new product ideas before international expansion. Pangasius can find its way into five-star restaurants, modern supermarket chains, and trending online sales platforms. The opportunity is real; the question is whether the industry is prepared to embrace and invest in it seriously.

The Vietnamese pangasius industry has achieved remarkable strides in the international market, becoming a symbol of the country's seafood processing and export prowess. However, for truly sustainable development, the industry requires a strong "pillar" in its homeland. The domestic market is not just a short-term fix during export downturns, but a crucial long-term strategy, allowing Vietnamese people to proudly declare: "We raise, we produce, and we consume pangasius – in the most modern and intelligent way."

The day pangasius becomes a common feature in school meals, workers' cafeterias, family banquets, and high-end restaurant menus will mark a new chapter for the industry: one of internal independence and comprehensive maturity.

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