According to data from the Vietnam Customs Department, Vietnam’s pangasius (basa fish) exports to Brazil reached over USD 12 million in January 2025, a 9% decline compared to the same period last year. Despite the decrease, Brazil has emerged as the third-largest importer of Vietnamese pangasius, showing steady long-term demand for this product.
Product Structure: Brazil Prefers Frozen Pangasius Fillets
In January 2025, Brazil continued to import only frozen pangasius fillets, while value-added products (VAP) — such as breaded fish, fish balls, and fish cakes — have yet to gain a foothold in the market.
This pattern is influenced by several factors:
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Consumer preference: Brazilian consumers favor frozen fillets, which are easy to prepare and align well with local cuisine.
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Cold-chain limitations: Value-added seafood requires a stronger refrigerated logistics system, which Brazil’s distribution infrastructure has yet to fully develop.
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Strict import regulations: Deep-processed seafood faces stricter inspection and documentation requirements, posing challenges for Vietnamese exporters seeking to diversify their product range.
Additionally, export prices for pangasius to Brazil fell by 12–14% in early 2025. The market remains focused on frozen fillets, even as Vietnamese companies aim to promote more processed and higher-value seafood.
Competition in Brazil has also intensified, with tilapia from China and pollock from the U.S. and Peru increasingly penetrating the market at competitive prices, creating downward pressure on Vietnamese exports.
FTA Negotiations Between Vietnam and Mercosur: A Potential Breakthrough
A promising development for Vietnam’s seafood exports is the ongoing negotiation of a Free Trade Agreement (FTA)between Vietnam and the Mercosur bloc, which includes Brazil, Argentina, Paraguay, and Uruguay.
If successfully signed, the FTA could reduce or eliminate tariffs on Vietnamese pangasius exports to Brazil, enhancing competitiveness against other imported fish. Currently, Vietnamese pangasius still faces certain import duties, whereas competing products like Chinese tilapia benefit from more favorable trade conditions.
Moreover, this agreement would not only strengthen Vietnam’s access to Brazil but also open new opportunities in other Mercosur markets, such as Argentina, where seafood consumption is rapidly increasing. This would help diversify Vietnam’s export portfolio and reduce reliance on traditional markets like the U.S. and EU.
Strategic Outlook: Strengthening Position in South America
To take advantage of this upcoming FTA, Vietnamese enterprises must:
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Proactively study preferential trade terms,
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Upgrade product quality and certification to meet Brazil’s strict import requirements,
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Build stronger logistics and partnerships for regional distribution, and
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Develop targeted branding strategies emphasizing sustainability and traceability.
With the right strategies, Vietnamese pangasius can expand its market share across South America, transforming Brazil from a single major buyer into a gateway market for the entire region.