Tuna exports to major markets drop due to COVID-19
Vietnamese tuna exports to a number of major markets have experienced a downward trajectory recently due to the increase in production and freight costs as a result of COVID-19 pandemic, according to industry insiders.
July alone saw the nation’s tuna export value increase by only 1.7% to approximately US$65 million compared to the same period from last year.
Nguyen Ha, a tuna market expert, revealed that Vietnamese tuna exports to the United States over the past three months have showed signs of slowing down.
This comes as the export value of tuna to the demanding market in July rose by only 6% on-year to US$28.6 million.
At present, freight rates from Asia to South America have increased, ranging from US$2,500 to US$12,000 per container, a factor which has significantly hindered Vietnamese competitiveness in the market place and is impacting affecting the country’s export shipments to this market.
Furthermore, tuna exports to the EU market in July recorded a drop of 21% compared to the same period last year. However, the export value of tuna to the fastidious market during the seven-month period enjoyed an annual surge of 20% to nearly US$87 million.
Currently, Vietnamese tuna exports to all three major markets in the EU, including Italy, Germany, and Spain have plunged by 34%, 40%, and 12%, respectively.
As the country’s the third largest export market, local tuna exports to nations in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) increased by 6.5% to US$7.4 million.
However, the export value of tuna to this market also witnessed a downward trend each month.
Most notably, tuna exports in July to Canada showed signs of declining with a drop of 45%, while exports to Mexico and Japan continued to rise by 2% and 413%, respectively.
Moreover, tuna exports to other markets such as Egypt, the Philippines, and China continued to grow in July, although the export value was generally lower than the previous month.
According to Ha, the country’s total export value of tuna during the seven-month period reached US$420 million, marking a 20% against the same period last year,
Due to the resurgence of COVID-19 pandemic nationwide, tuna processing and exporting factories are currently facing a range of difficulties, such as rising production costs, a shortage of workers, and a lack of raw materials.
Some factories based in provinces such as Long An and Ho Chi Minh City have been forced to suspend their production activities, thereby affecting tuna exports over the coming months.
