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Vietnam has positioned itself as one of the leaders in trade with the United Kingdom. In fact, according to the latest report from the Vietnam Association of Seafood Processors and Exporters, their projections for tuna exports to the UK are very promising.
Currently, Vietnam is a significant supplier of tuna products to the UK. In fact, it primarily supplies the UK with fresh and frozen tuna, which accounts for 99% of their total tuna imports. This figure has seen an impressive growth of 98% compared to the previous year. However, this growth is not uniform across all types of tuna, specifically exports of processed and canned tuna have decreased.
In the UK market, Vietnam ranks thirteenth in terms of tuna supply, with Ecuador, Mauritius, and Seychelles leading the market. However, this year, the situation seems to have changed due to the climatic phenomenon known as El Niño.
El Niño’s impact extends beyond crop yields
El Niño has led to reduced rainfall in Panama, resulting in a drought that has hindered the transportation of goods from South American countries like Ecuador to European countries through the Panama Canal. Consequently, maritime transport companies have had to seek alternative routes. Although the Strait of Magellan in South America is a natural waterway, it is located far from the Panama Canal and the port of Manta, making it inefficient for container ships. This presented an opportunity for Asian countries, including Vietnam, to increase their tuna exports to the European market, including the UK.
Agreements as key tools in the face of inflation
In addition to these natural phenomena, a market that has seized opportunities has come into play. In this regard, and in the current context of rising inflation, the increasing prices of tuna raw materials are impacting tuna demand in many markets. Therefore, trade agreements, such as the United Kingdom-Vietnam Free Trade Agreement (UKVFTA), create opportunities for Vietnamese tuna products in markets like the UK.
Furthermore, the United Kingdom recently became the twelfth member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This inclusion is expected to boost trade between the UK and CPTPP member countries, including Vietnam. Alongside the UKVFTA, these advantages from the CPTPP will open up additional opportunities for Vietnamese seafood products in the UK market, including tuna.
About Vietnam Association of Seafood Processors and Exporters
The Vietnam Association of Seafood Exporters and Producers (VASEP) is a voluntary organization comprised of companies engaged in seafood processing and export in Vietnam. Its primary mission is to facilitate collaboration among these businesses to enhance the value, quality, and competitiveness of Vietnamese seafood products. VASEP also focuses on developing a sustainable supply of raw materials for seafood processing and advocating for the legal interests of its members. Established on June 12, 1998, VASEP plays a pivotal role in Vietnam’s seafood industry.
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