Year-end stagnation

On January 7, the Vietnam Association of Seafood Exporters and Producers (VASEP) reported that, in the first 11 and a half months of 2024, the value of tuna exports to this market decreased by 18 percent compared to the same period in 2023, reaching over US$30 million. With this decline, Italy is no longer Vietnam’s largest tuna import market within the EU bloc.

According to data from the General Department of Vietnam Customs, the value of Vietnamese tuna exports to Italy has been continuously declining since June, from US$6 million in June to just over US$281,000 in November, falling below the level recorded during the same period in 2023.

Vietnam’s tuna exports to Italy stagnated in late 2024

Italy’s processed and canned tuna imports from Vietnam in the first 11 and a half months of 2024 decreased compared to the same period of 2023. The import of frozen steamed tuna loins under HS16 code saw the sharpest decline, 50 percent, while canned tuna imports decreased by 16 percent.

According to businesses, the Vietnam-EU Free Trade Agreement (EVFTA) has facilitated Vietnamese tuna products’ deeper penetration into the Italian market. The trade deal offers Vietnamese businesses tariff reductions and opportunities to increase exports to this market. Vietnam’s favorable geographical location, competitive labor costs, and deepening involvement in the global value chain are key factors strengthening its position in the Italian market.

Challenges from “input stage”

However, since Decree 37/2024/ND-CP came into effect on May 19, 2024, the domestic supply of skipjack tuna has faced shortages, affecting exports to various markets.

Moreover, the Lunar New Year 2025 will come in less than a month, but information from fisheries sub-departments indicates that many skipjack tuna fishing vessels in key provinces remain docked, with no clear date for heading out to sea.

Chart of Vietnam’s tuna exports to Italy

According to fishermen, while the purchasing price of skipjack tuna used to be VND30,000 per kg, it has now dropped to just VND17,000-19,000 per kg. At these prices, vessel owners either incur fuel losses or fail to cover labor costs, prompting them to keep their boats docked.

Under Decree 37/2024/ND-CP, the minimum allowable size for skipjack tuna to be caught is 50cm. However, the majority of the tuna caught by fishermen are under 2kg each and measure around 30cm, while only about 10 percent of the catch meets the minimum size requirement set by the decree. As a result, businesses refuse to purchase tuna not meeting the standards.

This situation is causing difficulties for fishermen and is also leading to a shortage of raw materials with pure origin that are eligible for tariff benefits under the EVFTA. It is expected that Vietnam’s frozen steamed tuna loin and canned tuna exports, not only to Italy, but also to other markets, will have to struggle to maintain growth in the early months of 2025.