Tuna exports to Canada double following sharp fall
VOV.VN - After enduring a deep decline in late 2021, Vietnamese tuna exports to Canada have enjoyed constant growth in the opening months of the year, with the export value to this market also doubling compared to the time prior to the COVID-19 pandemic.
According to statistics released by Vietnam Customs, the total value of Vietnamese tuna exports to Canada by the end of February had reached US$7.5 million, representing a year-on-year rise of 52%, with this figure being the strongest growth after months of decline.
According to Nguyen Ha, a tuna market expert, Canada is currently the nation’s second largest single tuna import market, behind only the United States and accounting for approximately 5% of total tuna export value. The North American nation is also the largest tuna import market in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) bloc.
At present, Vietnam is mainly exporting frozen tuna with code HS0304 to this market, making up 74% of the total export value in the first two months of the year.
Furthermore, the country is currently the second largest tuna supplier to the Canadian market, after Thailand, accounting for 12% of their total tuna import volume in 2021.
In terms of the frozen tuna market segment HS030487, Vietnam is the largest supplier to the highly lucrative market. Indeed, while Thailand's market share decreased, the Vietnamese market share showed an upward trend in 2021.
Currently, there are 31 tuna exporters to the Canadian market, with the four largest tuna exporting companies, including Yueh Chyang Canned Food, Foodtech, Bidifish, Tithico, Phuc Nguyen Seafood, and Mowi Vietnam, accounting for over 65% of the total tuna export value to this market.
According to the Vietnam Trade Office in Canada, despite the market size not being as large as the US market, Canada is also a potential market for Vietnamese tuna.
Statistics provided by the International Trade Centre indicates that Canada is currently the 16th largest tuna import market globally. With a population of nearly 38 million people and a policy of welcoming roughly 400,000 immigrants each year, the demand for seafood, including tuna, among Canadians is on a constant upswing.
Currently, Vietnamese tuna products fail to enjoy many preferential import tax incentives to the Canadian market, primarily as most of the products enjoyed an MFN tax rate of 0% before the CPTPP was signed and entered into force, except processed tuna which enjoys an MFN tax of 7%.
However, the Canadian market boasts some advantages, such as having no export quotas, whilst Canadian and Vietnamese seafood products are more reciprocal than direct competition. In addition, products imported into Canada enjoy easy access to the US market and vice versa, particularly when trade with the US constitutes 75% of Canada's total import and export turnover.
Therefore, there remains plenty of room for Vietnamese tuna exports to Canada to grow, Ha said, adding that it is expected that exports to this market will continue to grow over the coming months.