(vasep.com.vn) The Middle East is famous for huge oil reserves and its citizens’ high standard of living. This is a large and potential market for Vietnam tuna exporters where they can operate their long-term business.
The region has high economic growth of 6 – 14 percent per year. Because of low duty imposed on imported products into regional countries creating more opportunities for food products to penetrate in markets in the region. However, exporters must ensure the quality of their commodities in accordance with their commitment in contracts and deliver goods on schedule. Vietnam is exporting some main seafood products (pangasius, shrimp and canned tuna) to the Middle East.
In some recent years, Vietnam has been shipping more and more seafood products to the Middle East with gradual growth in export value: 2009 with US$192 million of export value, 2010 with US$225 million, 2011 with US$274 million. Since the early 2012 to April 15th 2012, seafood exports to the region reached nearly US$80 million, accounting for 5.1 percent of total seafood export value.
Tuna export value to the Middle East occupied a modest proportion compared to shrimp and pangasius: In 2009, tuna made up 6.3 percent of sales to the market, in 2010 with 8.6 percent and 10.5 percent in 2011.
Tuna exporters are taking advantage of business opportunities in emerging markets in the Middle East to boost tuna exports to these markets. However, the Middle East is not really exposing a strong attraction to tuna exporters due to low export price although conditions for exporting to the region and im-ex procedures are more favourable and simplified than those to European and American countries.
As of April 15th 2012, total tuna exports to the Middle East touched nearly US$9 million, up 16.6 percent from that of the same period of 2011. Among 10 markets in the Middle East with the 6 percent proportion of total Vietnam tuna export value, exports to three largest markets (Israel, Sudan and Lebanon) reached US$6.4 million, representing over 70 percent of total tuna export value to the region. Sudan, Iraq, Israel and Kuwait reported a strong growth in tuna imports compared to the same period of 2011.
In January 2012 alone, tuna export value to Sudan was higher than that of 2011 which brought Sudan to become one of 10 largest importing markets of Vietnam tuna (mainly canned tuna - HS 16 code).
Till April 15th 2012, among markets in the Middle East, Israel took the lead in tuna imports with US$3.5 million. This year, tuna exports to the market has signs of bounce with monthly growth of 700 percent although exports declined in recent 3 – 4 years.
Tuna shipment to Iran, UAE and Egypt has signs of slowing down in which shipment to Iran had the biggest reduction of 74.4 percent from that of the same period of 2011. In some recent years, Iran increased tuna imports from Vietnam, mainly raw tuna (HS 03 code) and in 2010 - 2011, Iran outstripped Israel to take the lead in the block with tuna imports of over US$9 million.
Tuna delivery to UAE tends to rise. In 2009, tuna exports to UAE only reached more than US$522 thousand, however, in 2011, it saw a four-fold increase of over US$2 million, mainly raw tuna (HS 03 code).
Vietnam exports to the Middle East are marking positive outlook thanks to increasingly high consumption demand of goods in the region. Besides, many regional countries tend to broaden their business in Eastern countries, including Vietnam which makes Vietnam goods as well as tuna more favorable to penetrate and raise the market share in regional markets.
In the wake of the global financial crisis, the Middle East still stands firm, so it is considered as an crucial importing market of Vietnam seafood, especially tuna.