Suggestions for you

Tuna exports to the EU will continue to decelerate in the third quarter

12/08/2022

According to the Association of Seafood Exporters and Producers (VASEP), Vietnam's tuna exports to the EU declined continuously in the second quarter of this year.

However, thanks to the good growth in the first quarter of the year, accumulated over six months, the export value of tuna to this market still increased by 4% compared to the same period in 2021, reaching more than USD 77 million.

In terms of product structure, exports of frozen tuna meat/loin (HS0304), canned tuna increased slightly, while that of fresh and frozen tuna HS03 code (except HS0304) and other processed tuna Vietnam's HS16 code continued to decrease.

As for the market, currently Germany, Belgium and the Netherlands are the top three EU countries in terms of tuna imports from Vietnam. While Vietnam's tuna exports to Belgium and the Netherlands continued to maintain a positive growth rate in the past 3 months, exports to Germany declined continuously.

This has caused the value of tuna exports to the German market in the first half of this year to decrease by 2% compared to the same period in 2021.

VASEP forecasts that tuna exports to the EU will continue to decelerate in the coming months. The reason is that Europe's euro has just experienced a "big shock" when the euro has hit parity with the dollar for the first time in 20 years.

EU countries are concerned about the possibility that Russia can cut off natural gas supplies to Europe and cause the region to fall into recession at any time. This will affect the entire economy, including the tuna fishing and processing industries of the EU countries.

According to data from the statistical agency Eurostat, consumer prices in 19 countries that use the euro rose from 8.1 in May to 8.6% in June. In which, the food group increased by 8.9 %, indicating widespread inflation in the eurozone.

Despite record inflation, the European Central Bank (ECB) did not raise interest rates in the second quarter. This delay has caused the Euro to depreciate against the USD.

The strong dollar is making tuna products imported from foreign countries such as Vietnam, the Philippines, and Ecuador into the EU more expensive. This has affected Vietnam's tuna exports to the EU in the past 3 months.

In addition, businesses said that the first months of the year are a favorable time to increase export orders to EU markets due to the impact of agreements on preferential tariffs under the Free Trade Agreement between Vietnam and the EU (EVFTA).

However, this year, the high gasoline price has affected the tuna catch of the whole country, causing the supply of raw tuna to ensure the rules of origin under the FTA to decrease.

In addition, the issuance of certificates of origin of Vietnam's goods according to the form of the EVFTA has many shortcomings, causing many export shipments to this market to be delayed. All these factors are restraining the growth of Vietnam's tuna exports to this market.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
Follow us