According to details given by the Vietnam Association of Seafood Exporters and Producers (VASEP), after three consecutive months of decline, Vietnamese tuna exports to the UK have increased once again, with export value to the highly lucrative market soaring by 56% to reach US$742 million.

The first half of the year witnessed tuna export turnover to this market rake in US$3.6 million, down 5% over the same period from last year.

Frozen tuna meat/loins remain the nation’s major export product to the UK market, accounting for 92%. In addition, the country is currently the second largest non-EU supplier of frozen tuna meat to the UK market, after the Republic of Korea (RoK).

The VASEP also reported that tuna is sold in many types of products in the UK market such as raw, ready-to-cook, sushi, sauced, cake, or breaded. Of which, canned and bagged tuna products are typically consumed the most. However, the consumption of this product group has been on a downward trend since last year.

It is also worth noting that Vietnamese tuna products in the UK market are having to compete with similar products from Ecuador, with the South American nation having already signed a free trade agreement (FTA) with the UK. This is therefore facilitating the South American nation as it increases its exports to the UK.

However, according to the Import-Export Department, Vietnamese tuna is gaining advantages in the UK market thanks to tariff incentives from the UKVFTA. According to the commitments set out in the UKVFTA, in terms of tariffs, this agreement has a mechanism to continue the EU-Vietnam Free Trade Agreement (EVFTA), which means that import tariffs placed on fresh and frozen tuna products will be quickly eliminated.

Tariffs placed on frozen tuna or tuna fillets will be eliminated over a three-year period from 18% to 0%. For processed tuna used for canned tuna - the base rate of 24% will be reduced over a seven-year schedule.

For canned and packaged tuna, the quota will be 11,500 tonnes per year duty-free. After that, the original tariff of 20.5% will then be applied, which will be reduced by 3.5% each year.

The Import-Export Department stated that in order to enjoy preferential tax rates as set out in the UKVFTA, Vietnamese seafood products must be able to prove their origin.

The provisions on Rules of Origin in the UKVFTA are similar to those of the EVFTA, with the origin criteria for raw and processed aquatic products in the UKVFTA being purely originating. In practice, this means that raw, semi-processed, and processed aquatic products exported from the nation are considered to have origin under the UKVFTA when the aquatic materials used in the production process are purely originating from Vietnam, either born or raised, caught, and processed entirely in the country. Therefore, they are not allowed to be imported from a third country outside of the agreement.

As part of efforts to promote tuna products to the UK market, according to experts, Vietnamese enterprises must strive to increase the application of science and technology, whilst also develop modern production and processing systems, thereby optimizing the production process in a bid to improve the quality and added value of products. This will help Vietnamese seafood gradually meet international standards and create competitive advantages.

In line with this, it can be viewed as essential to diversify export products, increase deeply processed products, choose market segments and distribution channels suitable for products and scale of business operation, while also looking into the tastes and characteristics of the market.

Source: VOV