Leveraging commitments under the UKVFTA, Vietnamese tuna has an advantage in conquering the UK market.

For canned and packaged tuna, a quota of 11,500 tonnes per year will be exempt from tariffs. After that, the original tariff of 20.5% will be applied, with a 3.5% reduction each year. With this agreement, Vietnamese tuna products are gaining an advantage in the UK market.

To benefit from the preferential tax rates as committed in the UKVFTA, Vietnamese seafood products must prove their origin. The rules of origin in the UKVFTA are similar to those in the EVFTA, with the origin criteria for raw and processed seafood in the UKVFTA being purely of Vietnamese origin.

This means that raw, semi-processed, and processed seafood exported from Vietnam is considered to have originating status under the UKVFTA Agreement when the seafood raw materials used in the production process originate purely from Vietnam (born or raised, caught, and processed entirely in Vietnam), and are not permitted to be imported from third countries outside the Agreement.

As can be seen, in 2021, the first year of the Agreement's implementation, this market imported seafood worth approximately £3.1 billion, equivalent to over US$3.7 billion in 2021. Of this, tuna ranked second with a share of 16% of the market's total seafood imports, with 113.5 thousand tons, occupying a relatively modest market share of about 2%.

According to the Vietnam Association of Seafood Processing and Export (VASEP), after a continuous decline in the first three months of 2024, Vietnam's tuna exports to the UK have rebounded in recent months, increasing by 56% in June, reaching US$742,000.

However, the high growth rate was still not enough to offset the previous decline. Therefore, in the first six months of 2024, tuna exports to this market reached 3.6 million USD, a decrease of 5% compared to the same period.

Increase processed products

Frozen tuna meat/loin (HS code 03) remains Vietnam's main export product to the UK, accounting for 92% of total export value. Vietnam is currently the second largest non-EU supplier of frozen tuna meat/loin (HS code 03) to the UK market (after South Korea). However, this year the UK has shown a tendency to reduce imports of frozen tuna meat/loin from Vietnam and other markets.

In the UK market, tuna is sold in various forms such as pre-processed, ready-to-eat, sushi, in sauces, in patties, or battered… Of these, canned and bagged tuna products are the most consumed but have been showing a downward trend since last year.

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

According to VASEP, in the canned and packaged tuna market segment, Ecuador, Mauritius, Seychelles, and the Philippines are the four main suppliers to the UK market. Vietnam is only a small supplier to the UK for this product group. Currently, its competitor Ecuador has signed a Free Trade Agreement (FTA) with the UK. This is creating favorable conditions for the country to increase exports to the UK, given its strong fleet and abundant supply of pure tuna.

Meanwhile, Vietnam has lower catch volumes, and regulations limiting the size of skipjack tuna allowed to be caught are causing increasingly lower yields. This situation results in businesses lacking sufficient supply of purebred skipjack tuna – the main raw material for the canned tuna processing and export industry – for production and export.

According to statistics from Seafish, 69% of British consumers' choices in canned seafood are tuna products. (Photo: Nguyen Hung)

Based on the above factors, VASEP believes that tuna exports to the UK are unlikely to maintain their growth momentum until the end of this year.

According to the Import-Export Department ( Ministry of Industry and Trade ), in terms of processed and canned products, tuna is the top choice for British consumers. In the UK, tuna is a food item mainly used in fast food, such as sandwiches, or in many meals while traveling.

According to statistics from Seafish, 69% of British consumers' choices in canned seafood are tuna products. In addition, due to the characteristics of this fatty fish, which is quite suitable for many processing methods, several other processed tuna products such as salads, sauces, and sandwiches are also very popular in this market.

Similar to other markets in Europe, UK consumers tend to focus not only on product origin and quality, but also on factors such as labor, environmental standards, and the sustainability of the value chain in production and supply. Other basic factors such as price, preparation methods, and similarities in meals and consumption locations are also important considerations.

Meanwhile, according to VASEP, Vietnam's catch volume is already much lower than that of neighboring countries due to the smaller fishing capacity of its fleet. In addition, regulations limiting the size of skipjack tuna allowed for harvesting are further reducing the catch. Businesses lack sufficient supply of skipjack tuna – the main raw material for the canned tuna processing and export industry – with a pure origin for production and export.

Therefore, to boost exports to the UK, experts suggest that Vietnamese businesses need to strengthen the application of science and technology, develop modern production and processing systems, thereby optimizing the production process to improve product quality and added value, helping Vietnamese seafood gradually meet international standards and create a competitive advantage. Along with this, they should diversify export products and increase the number of deeply processed products. They should also select market segments and distribution channels that are suitable for their products and business scale, and focus on understanding market tastes and characteristics.