Vietnam tuna exports "decelerate" in July 2022

(seafood.vasep.com.vn) Vietnam's tuna exports in July 2022 slowed down with an export value of more than 85 million USD, up 32% over the same period in 2021. This figure brought the total tuna export turnover in the first 7 months of 2022 to reach 638 million USD, up 52% over the same period in 2021.

Vietnam tuna exports decelerate in July 2022

According to statistics of Vietnam Customs, the value of tuna exports to markets in July has many fluctuations. The impact of high input prices of tuna and exchange rate fluctuations in the world market have made tuna exports face many difficulties.

Exports to the US "decelerate"

Tuna export turnover to the US continued to grow in July, but decreased by nearly half compared to the previous month. Specifically, the export value to this market in July reached 38 million USD, up 34% compared to July 2021. This contributed to bring the total export value in the first 7 months of the year to nearly 339 million USD, up 86% over the same period in 2021.

High inflation continues to drive demand for low-cost US tuna products. Import of processed and canned tuna with HS16 code from the US has increased again in the past 3 months, especially frozen steamed tuna loin products - raw materials for processing canned tuna.

Inflation rose at its fastest rate in decades, according to Bureau of Labor Statistics data. The prices consumers pay for goods and services rose 8.5% in July 2022 from a year earlier. Gas prices have dropped recently, but grocery prices are still up. Food prices rose 10.9% in the 12 months to July 2022, with prices of many everyday consumer goods higher. This is expected to continue to have a strong impact on US tuna imports in the coming months.

Exports to the EU reversed to increase in July 2022

After a continuous decline in Q2/2022, tuna exports to the EU increased again in July. Export turnover to EU markets in July increased by 16%, reaching more than 14 million USD, bringing the total export value in the first 7 months of 2022 to nearly 92 million USD, up 5% over the same period in 2021.

Germany, Belgium and the Netherlands continue to be the three largest importers of Vietnamese tuna in this market. However, while exports to Belgium and the Netherlands in July 2022 increased by 130% and 1% respectively over the same period in 2021, exports to Germany continued to decline.

Energy prices continue to rise rapidly across Europe as Russia cuts natural gas supplies to the region. This has led to higher food costs here. The activities of exporting tuna product groups to the EU will face multi-dimensional impacts.

Many businesses are very concerned about increasing orders in this market, because recalling the euro and converting it will lose its value, thereby affecting product prices from now until the end of 2022.

Tuna exports to the CPTPP market are volatile

In July, Vietnam's tuna export turnover to the bloc of countries participating in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) increased faster than in June 2022. Notably, export turnover to Canada this month increased "galloping" 234% over the same period, reaching nearly 6 million USD. Along with that, exports to Japan also continued to grow.

Meanwhile, exports to Mexico and Chile reversed to decrease in July 2022, down by 15% and 34% respectively.

Currently, the ban on the use of fish lure devices (FADs) in the Midwest Pacific region (WCPO) is causing the amount of tuna landing in this region to decrease, pushing up tuna prices. Meanwhile, the demand for raw tuna imports from enterprises is increasing because they have to prepare to meet orders from markets that increase at the end of the year. This is expected to cause enterprises to face many difficulties due to increased production costs.

Besides, inflation in other countries is still out of control. Tighter financial conditions are sure to lead to consumer spending cuts in most or all sectors of the economy. When the demand for goods and services decreases, their prices also tend to fall. All these are expected to continue to restrain the increase of Vietnam's tuna exports in the last months of the year.

Compiled by My Hanh 


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SPECIALIST ON TUNA MARKET

Ms Van Ha

Email: vanha@vasep.com.vn

Tel: +84 24 37715055 (ext. 216)

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