Vietnam’s tuna export orders to increase
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The Vietnam Association of Seafood Exporters and Producers (VASEP) forecast tuna export orders will increase sharply in the last months of the year due to decreasing inventories in major export markets.
VASEP said the stockpiled quantity of tuna in the U.S., one of the main markets of Vietnam has begun to decrease and importers were considering speeding up imports.
By the end of the year, major markets such as the U.S. will have many festivals, so consumer demand will increase. Meanwhile, preferential tariffs are an advantage that has pushed EU importers to seek orders from Vietnam.
Over the past seven months of this year, Vietnam’s tuna exports reached nearly $445.6 million, down 31% year-on-year, VASEP said.
While exports of high-value fresh, frozen and dried tuna products decreased 46%, shipments of processed and canned tuna goods saw a modest rise of 4% to over $204 million, it said.
Besides, exports to the EU, Mexico, Israel and Thailand had recorded high growth over the same period of 2022.
The EU market showed signs of recovery, with a growth rate of 28% in June and July, earning Vietnam a turnover of $12 million per month. Notably, in the bloc, exports to the Netherlands also continuously grew remarkably while that to Germany maintained an increase of 30% in June and July.
Vietnamese tuna exports to Mexico and Chile also recorded hikes of 100% and 90%, respectively. Meanwhile, tuna shipments to Thailand also soared 65% in the last two months.
According to Nguyen Ha, tuna market expert of VASEP, in the context that exports to the main traditional markets had all declined, Israel had emerged as a potential market.
“Besides, exports to the EU, Mexico, Israel and Thailand had recorded high growth over the same period of 2022.”
In the first half of this year, Vietnamese tuna exports to Israel hit nearly $25 million, up 92% over the same period last year.
Frozen tuna meat and fillets still accounted for the highest proportion of 47%. The export value of this product group saw a yearly hike of 29%. Meanwhile, the export turnover of canned tuna increased 375% and other processed tuna products surged 83%.
Despite being a small country, with no natural resources and limited domestic labor resources, Israel’s consumer demand was quite large and solvency was high, so there remained ample room for Vietnam’s tuna exports to the market, Ha said.
Especially, the Vietnam-Israel FTA (VIFTA), signed on July 25, would open up opportunities for Vietnam’s seafood exports, including tuna, to access the Israeli market and lucrative Middle East region, Ha said.
To penetrate the Israeli market, VASEP Secretary General Truong Dinh Hoe suggested that tuna exporters ensure product quality, carefully study market information, promote credibility and be responsible.
He vowed that VASEP would accompany, research carefully and disseminate market information to businesses.
To facilitate tuna exports, businesses petitioned the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade to grant more quotas for imported raw tuna as domestic tuna raw material could meet only 25% of demand for processing and export, the Binh Dinh Fishery JSC Co suggested.
Questions & Answers
Q.What is the primary reason VASEP expects tuna export orders to increase in the coming months?
What is the primary reason VASEP expects tuna export orders to increase in the coming months?
VASEP anticipates an increase because major markets like the U.S. Have decreasing tuna inventories. Also, upcoming festivals in these markets are expected to boost consumer demand, encouraging importers to speed up orders.
Q.Which specific product types saw growth in Vietnamese tuna exports despite an overall decline?
Which specific product types saw growth in Vietnamese tuna exports despite an overall decline?
Despite an overall decline, exports of processed and canned tuna goods saw a modest rise of 4%, reaching over $204 million. Other processed tuna products also surged by 83%, and canned tuna increased by 375% in Israel.
Q.What role do preferential tariffs play in increasing tuna exports to the EU market?
What role do preferential tariffs play in increasing tuna exports to the EU market?
Preferential tariffs are a significant advantage for Vietnam, actively pushing EU importers to seek orders from the country. This has contributed to the EU market showing signs of recovery, with substantial growth in recent months.
Q.Why is Israel considered a potential market for Vietnamese tuna exports, and what was its growth like?
Why is Israel considered a potential market for Vietnamese tuna exports, and what was its growth like?
Israel is a potential market due to its high consumer demand and solvency, despite being a small country with limited resources. Exports to Israel hit nearly $25 million in the first half of this year, representing a 92% increase.
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