Tuna exports still heavily depend on imported raw materials. Photo: T.H

High growth in many markets

According to data from Vietnam Customs, Vietnam's tuna exports in June continued to grow. The value of tuna exports this month reached over 85 million USD, an increase of 32% compared to the same period in 2023. The cumulative export value for the first six months of the year reached nearly 472 million USD, an increase of 23%.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), exports of all tuna product groups from Vietnam in the first half of 2024 increased compared to the same period.

However, while the export value of frozen tuna meat/loins in June 2024 reached the highest level since the beginning of the year, exceeding 44 million USD, up 29% compared to the same period and showing a growing trend, canned tuna exports decreased, with the export value in June 2024 only reaching over 17 million USD, down 11%.

In specific markets, tuna exports to major markets such as the US, EU, and Israel continued to increase in June, by 18%, 56%, and 50%, respectively. Notably, in the EU market block, tuna exports to Italy and the Netherlands are soaring at a three-digit rate, while exports to Germany are decreasing.

Additionally, tuna exports to Russia also increased at a three-digit rate in June. With continuous high growth since the beginning of the year, Russia is becoming one of the top five largest importers of Vietnamese tuna.

Contrary to the export trend to the aforementioned three markets, exports to the markets participating in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) decreased in June. The export value to this market block in June only reached nearly 9 million USD, down 12%.

Currently, the demand in markets is increasing in preparation for the year-end holidays, presenting an opportunity for enterprises.

However, according to enterprises, the growth trend of tuna exports to the aforementioned markets is difficult to maintain due to the lack of purely sourced raw materials.

On April 4, 2024, Decree No. 37/2024/ND-CP of the Government amending and supplementing several articles of Decree No. 26/2019/ND-CP dated March 8, 2019, detailing several articles and measures for the implementation of the Fisheries Law took effect. The issue is that the minimum size of skipjack tuna allowed for exploitation currently specified in Decree 37 is 0.5m (equivalent to a weight of 5kg to 7kg).

However, the actual yield of tuna reaching this size is very low. Consequently, when Decree 37 takes effect, all fishing ports will not issue confirmation certificates for skipjack tuna smaller than this exploitation size. This will lead to a reduction in the domestic supply of skipjack tuna. Consequently, enterprises will not have purely sourced raw materials for production.

More than 50% value from imported sources

Currently, exports are still increasing due to the reserve of skipjack tuna raw materials that have been issued certificates, but these reserves are also depleting. Enterprises will have to increase imports from foreign sources.

According to VASEP, in the value structure of tuna exports in recent years, more than 50% of the value is created from imported raw materials because domestic exploitation does not meet the demand for export processing and is not stable.

According to Ms. Cao Thi Kim Lan, General Director of Binh Dinh Fishery Joint Stock Company, annually, Vietnam receives an average of over 20 foreign fishing and freezing vessels transporting hundreds of thousands of tons of raw tuna directly into Vietnam to sell to enterprises. The supply chain of raw materials in Southeast Asia has shifted to Vietnam instead of only Thailand as before.

Vietnam is now a priority destination for global raw material suppliers because enterprises have large production capacity, superior technology, and, above all, flexible and open raw material import policies, tariff preferences, and facilitated import procedures... have established credibility with major suppliers.

However, the second half of the year is usually the time enterprises need to increase production for export orders to major markets like the EU, to enjoy tariff preferences when quotas are reopened early next year.

Additionally, the EU's conservation regulations do not mention the minimum size of skipjack tuna but only apply to some sensitive species; the minimum size also varies depending on the sea area and resources in that area. The EU protects fisheries resources by setting quotas, and fishing ban periods, rather than just specifying the minimum size for exploitation. Foreign fishing vessels still catch skipjack tuna under 1.5 kg and are still certified for their catches.

Therefore, if Vietnam does not quickly resolve these difficulties for enterprises, it won't be long before Vietnamese enterprises lose their export markets.