Balancing the aquatic export supply chain strategy- A case study of the Vietnam pangasius industry

COVID-19 has called more attention to the importance of supply chains (SCs) in the global food market. The supply chain for Vietnamese pangasius is expanding at a rapid rate, and export shares are changing in the EU, the US, China, and ASEAN markets. Increased international competition in the whitefish market and other emerging Asian markets have forced the Vietnam pangasius industry to re-examine its SC strategy. The questions raised are: Should the pangasius industry employ a responsive SC, where aquatic products achieve international certificates and respond to consumer demand, or embrace a cost-efficient supply chain with large export volumes, low selling prices, and increased stakeholder profits? Based on the concepts of cost responsiveness and efficient frontier, using time series data for 2010–2019, we attempted to identify and describe the factors influencing Vietnamese pangasius strategic balance along this frontier. Vietnam's pangasius strategic balance is between a responsive supply chain and a cost-effective SC with greater emphasis on responsive supply chain management. However, there is insufficient attention to changing consumer trends and demands, and although the laws directing each node of the supply chain are numerous, there is inadequate enforcement and oversight of their implementation. The strategy of cost minimization is facing many challenges: the market share is declining in some major markets, profits have tightened due to low selling prices, there is competition with other whitefish species, and distribution channels have improved but remain inefficient. The recommendation requires the adoption of a supply chain strategy that balances between a cost-efficient and a responsive chain for the pangasius industry to remain competitive.