Tuna exports take advantage of FTAs

According to Ms. Nguyen Ha, tuna market expert of the Vietnam Association of Seafood Exporters and Producers (VASEP), in the first quarter of 2022, Vietnam's tuna exports reached more than US$ 259 million, up 72% compared to the same period in 2021 and increased 1.6 times compared to the same period in 2019, the time before the outbreak of the Covid-19 pandemic. With the above turnover, the export of tuna size 1 reached the highest level in the past five years.

The impressive growth of tuna exports in the first months of this year has been marked by an essential impression from markets with free trade agreements with Vietnam. For example, tuna exports to the EU reached nearly US$ 38 million in the first three months of the year, up 33% over the same period last year.

Tuna exports to many countries in the CPTPP market have also grown remarkably, such as Chile by 71% and Canada by 70%... It shows that tuna businesses have made good use of incentives from FTAs.

In addition, the number one market for Vietnamese tuna, the US, also grew strongly in the first three months of the year when it reached US$ 137 million, up 116% over the same period in 2021.

Tuna exports in the coming months still have many optimistic signals in terms of the market. The largest market for tuna globally is the EU, which is seeing a recovery in demand. In 2021, the amount of canned tuna imported into the EU was 519,000 tonnes, an increase of 11% compared to 2020.

Although the above import volume is still lower than in 2019, the significant growth compared to 2020 has shown that the canned tuna market in the EU is gradually returning to the way it was before the Covid-19 epidemic. That contributes to Vietnam's tuna exports to the EU prosper in the first months of this year and is expected to continue growing until the end of the year in the context that European countries are opening their doors to tourists. The return is expected to increase the demand for high-value tuna products in this market area.

According to the Vietnam Trade Office in Canada, although the size of the market is not as large as the US, Canada is also a potential market for Vietnamese tuna, as it is the 16th largest tuna import market in the world.

The Canadian market has some favorable features, such as no import quotas, and Canadian and Vietnamese seafood products are more reciprocal than directly competitive. Besides, products imported into Canada easily access the US market and vice versa when Canada and US trade accounts for 75% of Canada's total import and export turnover.

Therefore, the Vietnam Trade Office in Canada said that Vietnam's tuna exports to Canada still have a lot of room for growth. Tuna exports to this market will continue to grow in the coming months. Canada is currently the second-largest single market for Vietnamese tuna and the largest import market in the CPTPP market.

The US is the largest market for Vietnamese tuna, and Vietnam is currently the second-largest tuna supplier to the US (the world's largest tuna import market). It is worth noting that while reducing tuna imports from Thailand, Indonesia, Mexico, etc., the US increased its tuna imports from Vietnam in the first months of this year. It shows that Vietnamese tuna is quite competitive in this market. Therefore, tuna exports to the US are also more positive in the coming months.

Although the market is favorable, Vietnamese tuna exporters are still facing significant challenges in terms of logistics because the primary market for Vietnamese tuna is still North America and Europe. Sea freight to these routes is still at a very high level.

However, according to VASEP, increased demand from foodservice chains will boost import demand in essential markets as markets have reopened. Therefore, Vietnam's tuna exports are forecast to grow by double digits in the coming months.

The business also imports raw materials from abroad to meet the orders and promote the purchase of domestic tuna. For a long time, domestic raw materials have not been able to meet the needs of processing factories because the output is less than 15%.