Vietnamese tuna exports impacted by Russia-Ukraine conflict
The ongoing armed conflict between Russia and Ukraine has significantly affected Vietnamese tuna exports to these markets, according to Vietnam Association of Seafood Exporters and Producers (VASEP).
As shown in the statistics compiled by the General Department of Vietnam Customs, as of the end of 2021 both Eastern European countries were among the 20 largest markets in terms of tuna import value from Vietnam.
At present, Russia represents the 13th largest importer of Vietnamese tuna. Last year saw Vietnamese tuna exports to the Russian market reach over US$14 million, accounting for 2% of the country’s total export value. In particular, tuna exports to Russia in January enjoyed an annual increase of 427%.
Furthermore, Ukraine is also currently the country’s 19th largest tuna import market. Over the past five years, the export value of tuna has continuously increased, with last year witnessing tuna export value soar by 106% on year.
According to the VASEP, some exported orders were returned back due to the ongoing Russia-Ukraine conflict. Currently, local tuna exports to the two countries must be halted due to the risks of banking transactions, coupled with supply chain disruption on production and imports and exports.
Moreover, both Ukraine and Russia are the most important suppliers of sunflower oil to the global market, including Vietnam. Therefore, if the conflict continues to escalate, the price of most of the vegetable oils used in tuna processing will jump to all-time highs, thereby pushing up the production cost of canned and bagged tuna in the to come.
