Vietnam Association of Seafood Exporters and Producers (VASEP) said that after 3 consecutive months of decline, Vietnam's tuna exports to the UK have increased again. In June 2024 alone, tuna exports to this market increased by 56%, reaching 742 million USD.

However, the high growth rate in the past 2 months was still not enough to offset the previous decline. In the first 6 months of 2024, the cumulative export turnover of tuna to this market reached 3.6 million USD, down 5% over the same period.

Frozen tuna meat/loins are still Vietnam's main export product to the UK market, accounting for 92%. Vietnam is currently the second largest non-EU source of frozen tuna meat to the UK market, after South Korea.

In June 2024, tuna exports to the UK increased by 56%, reaching 742 million USD. Photo: Vnexpress

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

On the contrary, consumption of tuna products such as sushi or breaded tuna tends to increase. Therefore, this is an opportunity for countries to increase exports of processed and canned tuna products.

According to the Import-Export Department (Ministry of Industry and Trade), in terms of processed and canned products, tuna is the top choice of British consumers. According to statistics from the Seafish agency, 69% of British people's choices in the canned seafood group are tuna products. In addition, due to the characteristics of fatty fish that are quite suitable for many forms of processing, some other processed tuna products such as salads, toppings, bread, etc. are also very popular in this market.

Similar to other markets in the European region, consumers in the UK also tend to pay attention not only to the origin and quality of products, but also to factors related to labor, environment, or the sustainability of the value chain in the production and supply of products. Other basic factors such as price, processing method and similarity in meals, and place of use are also of interest.

However, in the UK market, Vietnamese tuna products are competing with similar products from Ecuador, because Ecuador has signed a free trade agreement (FTA) with the UK. This is creating favorable conditions for this country to increase exports to the UK. With a powerful fleet, the supply of tuna of pure origin for Ecuador is quite abundant. Therefore, Ecuador has many opportunities to increase exports to this market.

Meanwhile, according to VASEP, Vietnam's catch is inherently much lower than that of its neighbor due to the lower fishing capacity of its fleet. In addition, regulations limiting the size of tuna allowed to be exploited are making the output even lower.

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

Tariffs on frozen tuna or tuna fillets will be eliminated over a 3-year period from 18% to 0%. For processed tuna used for canned tuna - the base rate of 24% will be reduced over a 7-year schedule.

For canned and packaged tuna, the quota will be 11,500 tons per year, which will be tax-free. After that, the original tax rate of 20.5% will be applied, which will be reduced by 3.5% each year. "With this agreement, Vietnamese tuna products have an advantage in the UK market," the Import-Export Department informed, adding that to enjoy preferential tax rates as committed in the UKVFTA, Vietnamese seafood products must prove their origin.

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

Therefore, to promote tuna products to the UK market, according to experts, Vietnamese enterprises need to increase the application of science and technology, develop modern production and processing systems, thereby optimizing the production process to improve the quality and added value of products, helping Vietnamese seafood gradually reach international standards and create competitive advantages.

Along with that, diversify export products and increase deeply processed products. Choose market segments and distribution channels suitable for the products and scale of the business; focus on understanding the tastes and characteristics of the market.