Since 2021, due to the impact of Brexit and the impact of the Covid-19 pandemic, Vietnam's tuna exports to the UK are unstable and tend to decrease. The value of Vietnam's tuna exports to the UK in 2021 only reached nearly 9.3 million USD, down 23% compared to the same period in 2020.
Entering 2022, the dual impact of the Covid-19 pandemic, plus the impact of the Russia-Ukraine conflict, has impacted the British economy. Inflation in the UK has risen to a 40-year high and is almost the highest in Europe.
According to the statistics of the UK's Office for National Statistics (ONS), the country’s CPI rose 10.1% from 9.9% in August 2022 due to soaring food prices. Figures for September 2022 are similar to those recorded in July 2022 and are the highest in 40 years, caused by soaring energy bills.
Vietnam's tuna exports to the UK are still difficult to recover
Prices of food and non-alcoholic beverages increased the most, up 14.5%, the biggest increase since April 1980. The British pound fell to 1.13 dollars per pound.
This has caused the food service industry in the UK to be severely affected, especially the fast food sector, by labor shortages and high commodity prices.
In the UK, tuna is used mainly in fast foods, like sandwiches, or in many meals while traveling. Currently, labor shortages have affected the UK foodservice industry and the labor-intensive fast-food sector such as sandwiches. Many factories had to cut down production. This has led to a decline in UK tuna imports.
UK tuna imports by the end of July 2022 have decreased by 5% in value compared to the same period in 2021. Vietnam is currently the 13th largest tuna supplier out of 27 tuna supplies to this market. In the current inflationary context, the UK tends to increase tuna imports from sources that are exempt from import taxes, from cheap and geographically advantageous tuna sources such as Ecuador, the Philippines, etc.
Regarding tariff advantages, the UKVFTA has a continuation mechanism from the EVFTA, which means that tariffs on fresh and frozen tuna products will be quickly eliminated. Tariffs on frozen tuna loins or fillets will be eliminated over a three-year period from 18% to 0%.
For processed tuna used for canned tuna – the base rate of 24% will be reduced over a 7-year schedule.
For canned and packaged tuna, the quota will be 11,500 tons per year which will be duty free. After that, the original tax rate of 20.5% will be applied, which will be reduced by 3.5% per year.
With this agreement, Vietnamese tuna products are also having an advantage in the UK market. However, with the current inflation and political instability, Vietnam's tuna exports to the UK are still difficult to recover.
Compiled by Thuy Linh
Competent ministries, sectors and localities should continue efforts to lift the European Commission’s “yellow card” against the Vietnamese seafood products for illegal, unreported and unregulated (IUU) fishing, as an inspection team of the commission will visit Vietnam soon, Minister of Agriculture and Rural Development Le Minh Hoan.
(seafood.vasep.com.vn) According to data from Vietnam Customs, in March 2024, Vietnamese pangasius export turnover to markets reached 156 million USD, down 14% over the same period. Vietnam pangasius export value in QI/2024 reached 411 million USD, down 3% compared to QI/2023.
(vasep.com.vn) According to data from the Department of Fisheries, as of March 20, 2024, the shrimp farming area reached about 348,670 hectares, including 334,799 hectares of black tiger prawn farming area and 13,871 hectares of white leg shrimp farming area.
(seafood.vasep.com.vn) Vietnam's tuna exports reached around $84 million in March 2024, a 17% rise. Vietnam's total tuna export revenue for the first three months of 2024 was $215 million, up 19% from the same time in 2023 but down 17% from 2022. It is anticipated that tuna exports may miss the billion-dollar mark as in 2022 at this rate and the difficulties the business faces.
Vietnam raked in over US$200 million from exporting tuna to 86 markets worldwide during the first quarter of the year, representing a rise of 19% against the same period from last year.
Vietnam’s pangasius export to the United Arab Emirates (UAE) reached more than 7 million USD in the first quarter of this year, a rise of 67% against the same period last year. UAE mainly imported frozen fillets from Vietnam.
(seafood.vasep.com.vn) According to data from General Department of Vietnam Customs, the UK imported nearly $3 million worth of pangasius from Vietnam in the first half of March 2024. Cumulative pangasius exports to this market reached $12 million as of March 15, 2024, down 3% from the same period last year.
Total export revenue from agro-forestry-fisheries products in the first three months of this year is estimated at 13.53 billion USD, up 21.8% over the same period last year; and this results in a trade surplus of 3.36 billion USD, a rise of 96.5%, according to the Ministry of Agriculture and Rural Development (MARD).
The southernmost locality is developing shrimp farming models that generate large outputs but are environment-friendly.
(seafood.vasep.com.vn) An Giang province's aquaculture output is predicted to reach 172.3 thousand tons in the first quarter of 2024, up 6.37% (+10.3 thousand tons) from the same time the previous year.
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