Tuna exports sharply dropped in August

Despite having had many months of continuous growth, Vietnam's tuna exports in August 2021 decreased significantly compared to the same period last year.

Tuna fishing.

According to the General Department of Customs, Vietnam's tuna export turnover in August 2021 reached approximately USD 49.4 million, down 19% over the same period in 2020. The export value in main markets such as the USA and the European Union (EU) and countries signing the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) simultaneously decreased.

To be more specific, regarding the USA market, tuna exports in August decreased by nearly 26% compared to the same period last year. The reason lies in the fact that this country's demand for canned tuna has now stabilized after facing an unusual rise at the peak of the epidemic in the previous year. Moreover, this item is sold at FOB price, which means that importers must bear the shipping fee, resulting in fewer import orders due to higher freight charges.

Exports to the EU also dropped 28% last month. Among the three largest export markets in this bloc, Spain is the only country where exports show signs of growth, while on the other hand exports to Italy and Germany had plummeted. High inventories of tuna and high freight rates during the epidemic is the main cause for the EU’s decline in tuna demand.

Vietnam considers the areas of CPTPP-signed countries as the third largest tuna export market. Even so, the country’s tuna export turnover in August 2021 suffered a slight decrease, maintained at 4.3% with a total value of USD 7 million.

Although there is a decrease in Vietnam's tuna export turnover in August decreased, the Vietnam Association of Seafood Exporters and Producers (VASEP) assessed that this is within expectation since many provinces and cities, especially in the southern region, faced difficulties in production and processing. Due to the implementation of social distancing under Directive 16, many factories in this area have to close or reduce capacity to execute the "3 on the spot" model.

Up until the present date, many industrial parks in the South are still locked down, businesses have had their hands tied, unable to restore production activities despite having the opportunity to increase export orders in the US and the EU at major festivals at the end of the year.

The bright side of tuna exports in this period is that the accumulated value in the first eight months of the year still increased by nearly 13% over the same period last year, reaching nearly USD 470 million. This is the result of maintaining good growth during the first months of the year as well as the close instruction of the Ministry of Agriculture and Rural Development.