THE URGENCY OF THEME
In the context of increasing international integration, our country is actively enhancing its import and export relations The government is committed to supporting business organizations by reducing barriers to foreign trade This integration aligns with national capabilities and interests, emphasizing the urgency to seize opportunities Consequently, we are focused on actively developing the export sector, effectively integrating into the global economy, and fulfilling both bilateral and multilateral commitments.
Vietnam has significantly enhanced its import and export efforts, particularly in the seafood sector, which has emerged as a major industry The tuna export industry stands out, showcasing remarkable growth and potential Between 2015 and 2019, the export value of Vietnamese tuna surged over 1.6 times, rising from $455 million to more than $719 million, marking a 58% increase and representing 21-22% of the total seafood export value By 2019, Vietnamese tuna was available in 108 markets, including highly competitive regions such as the USA, EU, ASEAN, Israel, Japan, Canada, Mexico, and China.
Vietnam ranks among the top eight tuna exporters globally, with a market share of 3.65% and an export value of USD 297 million in 2020 Despite this position, it trails behind Thailand, Indonesia, and the Philippines, with Thailand leading the market by holding 29% of the global tuna export share and generating an impressive USD 2.36 billion in export revenue.
Vietnam boasts a lengthy coastline and vast tuna fishing grounds, comparable to those of Thailand and the Philippines Despite these natural advantages, Vietnam's market share and export value for tuna lag behind these competitors This discrepancy prompts an inquiry into the factors influencing Vietnam's tuna export performance.
Numerous domestic research projects, theses, and doctoral dissertations have explored various aspects of tuna; however, there is a scarcity of studies specifically addressing the factors influencing Vietnam's tuna exports In response to both practical and theoretical needs, the author has selected "Determinants of Vietnam's Tuna Exporting" as the focus of her research.
LITERATURE REVIEW
The study "Determinants of Indonesia Frozen Yellowfin Tuna Exports to Main Destination Countries" by Zainuri Syam, Vivi Silvia, and Taufiq C Dawood from Syiah Kuala University (2021) analyzes the impact of export prices, exchange rates, GDP per capita, and economic distance on Indonesia's frozen yellowfin tuna exports Utilizing the Fixed Effects Model, the research reveals that export prices and exchange rates negatively affect these exports, while GDP per capita positively influences them Additionally, the study finds that economic distance does not significantly impact Indonesia's frozen yellowfin tuna exports to importing countries The authors also propose solutions for the government and exporting companies to enhance export performance.
A recent study titled “A Gravity Model for Indonesian Canned Tuna Exports to The European Union Market: An Application of PPML Estimator” by Puspi Eko Wiranthi, Iwan Aminudin, and Eka Rachmawati Dewi from Syarif Hidayatullah State Islamic University examined the impact of various factors on Indonesian canned tuna exports to the EU The research highlighted that the GDP of importing countries, real exchange rates, production volumes of Indonesian tuna, economic distance, and the population of importing countries play crucial roles in export dynamics Key findings revealed that the population of importing countries, tuna production volumes, and real exchange rates significantly influence Indonesian canned tuna exports to the EU market.
A team of researchers, including Fabrizio Natale, Alessandra Borrello, and Arina Motova from the European Commission's Joint Research Centre in Ispra, Italy, developed a gravity model to assess the factors influencing international seafood trade Their study, titled "Analysis of the Determinants of International Seafood Trade Using a Gravity Model" (2015), provides valuable insights into the dynamics of seafood commerce on a global scale.
RESEARCH PURPOSES
Systematize the foundational issues of factors affecting the export of
Vietnamese tuna to the world market
Assessing the export status of Vietnamese tuna products in the international market
Researching on the impact of factors on tuna exports of Vietnam and importing countries
Proposing solutions at a macro and micro level to promote Vietnam's tuna exports to the world market.
RESEARCH SUBJECT AND SCOPE
The research object of the thesis is the issues related to Vietnam's tuna export activities and the determinants affecting this activity
- About the content: Analyze and evaluate the impact of factors on the export of Vietnamese tuna to the world market
- About space: Focusing on catching, processing and exporting Vietnamese tuna
- About time: Studying the tuna export market of Vietnam from 1996 to 2019, from there to propose solutions and recommendations to develop Vietnam's tuna export market from now to 2025.
RESEARCH METHODOLOGIES
- Qualitative method: The author uses data collection, analysis and comparison methods to draw core conclusions as the basis for solutions and recommendations
- Quantitative method: The author uses the Gravity Model to assess the determinants affecting Vietnam's tuna exports.
THESIS STRUCTURE
In addition to the introduction, conclusion, table of contents and list of references, the topic is presented in 3 chapters:
- Chapter 1: The theoretical basis of determinants affecting Vietnam's tuna export activities
- Chapter 2: The actual situation of tuna export activities of Vietnam and the world
- Chapter 3: Solutions to improve Vietnam's tuna export activities.
AN OVERVIEW OF TUNA EXPORT
INTRODUCTION OF TUNA
Tuna, also known as "tunny," is a saltwater fish from the Thunnini tribe within the Scombridae family, comprising 15 species across five genera Notably, tuna is one of only three fish species capable of maintaining a body temperature higher than their surrounding water With a sleek, streamlined body, tuna ranks among the fastest swimming pelagic fish and serves as an active predator This fish is not only vital to marine ecosystems but also plays a crucial role in the diets of millions, making it one of the most commercially valuable fish globally.
Table 1.1: Major varieties of tuna
Bigeye tuna 210 kg (460 lb) 2.5 m (8.2 ft) Skipjack tuna
450 kg (990 lb) 3.0 m (9.8 ft) Yellowfin tuna
The commercial market is primarily made up of four varieties of Tuna:
Skipjack tuna (Katsuwonus pelamis) is the smallest species among commercially available tunas, primarily inhabiting the tropical regions of the Atlantic, Indian, and Pacific Oceans This species is often caught alongside juvenile yellowfin and bigeye tunas, highlighting its presence in diverse marine ecosystems.
Skipjack tuna are predominantly found in equatorial waters, with geographical limits ranging from 55-60° N and 45-50° S In Vietnam, these fish are abundantly distributed in the offshore waters of Central and Southeastern provinces, particularly in Phu Yen, Khanh Hoa, Binh Thuan, and Vung Tau.
Uses: Processed to make canned tuna
Yellowfin (Thunnus albacares) are found in the tropical and subtropical areas of the Atlantic, Indian, and Pacific Oceans Yellowfin reach intermediate sizes, between albacore and bigeye
Yellowfin tuna are primarily found within geographical limits of 45°-50° N and S, with a significant presence in the Pacific Ocean between 20° North and South In Vietnam, these fish predominantly inhabit the Central and Eastern waters, where they form large schools near the ocean's surface.
Uses: Yellowfin can be found in cans or as fresh and frozen in steaks form, loins, fillets or whole
Bigeye tuna (Thunnus obesus) inhabit tropical and subtropical regions of the Atlantic, Indian, and Pacific Oceans, excluding the Mediterranean Sea They can grow to sizes comparable to those of yellowfin tuna.
Bigeye tuna are found in equatorial waters and higher latitudes, specifically between 55-60° N and 45-50° S In Vietnam, they are primarily located in the offshore waters of Binh Dinh, Phu Yen, and Khanh Hoa provinces The fishing season for bigeye tuna runs from November to July, with a notable increase in total catch during the summer months from April to July compared to the winter months from November to March.
Uses: Big tuna which is sold as tuna steaks and sushi
Albacore (Thunnus alalunga), one of the smaller major tuna species, is a temperate species widely distributed in temperate and tropical waters of all oceans
Geographical Limits: Generally limited to temperate and tropical waters From 45- 50° N and 30-40° S in the Atlantic Ocean From 5° N to 40° S in the Indian Ocean, with adults occurring from 5° N to 25° S
Uses: Pale flesh tuna which can be mainly found in cans, but also as fresh or frozen
The tuna is a streamlined fish designed for speed, featuring two closely spaced dorsal fins, with the first being depressible and able to lay flush in a groove along its back It has seven to ten yellow finlets extending from the dorsal fins to its crescent-shaped, tapered tail The thin caudal peduncle, where the tail attaches, includes three stabilizing horizontal keels on each side Its dorsal side is typically a metallic dark blue, while the ventral side is silvery or whitish, providing effective camouflage.
Thunnus species, commonly known as tunas, are found across the world's oceans, primarily in tropical and temperate waters between 45° north and south of the equator These fish possess the unique ability to keep certain body parts warmer than the surrounding seawater, with bluefin tunas capable of maintaining a core temperature of 25–33°C (77–91°F) even in waters as cold as 6°C (43°F) Unlike mammals and birds, tunas do not regulate their body temperature within a narrow range, showcasing their distinct physiological adaptations.
Tunas achieve endothermy by conserving metabolic heat, allowing them to thrive in cooler waters Their hearts function at ambient temperature due to receiving cooled blood directly from the gills The rete mirabile, a network of veins and arteries, facilitates the reclamation of metabolic heat from venous blood, transferring it to arterial blood through a counter-current exchange system This adaptation helps maintain elevated temperatures in highly aerobic tissues such as skeletal muscles, eyes, and brain, resulting in faster swimming speeds, reduced energy expenditure, and the ability to inhabit a broader range of ocean environments compared to other fish.
Tuna are unique among fish due to their muscle tissue, which ranges in color from pink to dark red, unlike the typical white flesh found in most fish This distinctive coloration comes from myoglobin, an oxygen-binding molecule present in significantly higher amounts in tuna The abundance of myoglobin, combined with their oxygen-rich blood, enhances energy delivery to their muscles, contributing to their exceptional swimming capabilities.
Cavitation poses significant challenges for powerful swimmers like dolphins and tuna, as it restricts their maximum swimming speeds Dolphins often have to limit their speed due to the painful collapsing bubbles on their tails, while tuna, despite lacking the sensation of these bubbles due to their bony fins, are similarly hindered by a vapor film formed around their fins This phenomenon not only slows them down but has also been linked to lesions on tuna, indicating cavitation damage.
Tuna is also a great source of other vitamins and minerals, such as: iron, vitamin B6, potassium, selenium, iodine Tuna is one of the best dietary sources of vitamin
D Just 3 ounces of canned tuna yield as much as 50% of the recommended daily level
Canned light tuna in oil is 29% protein, 8% fat, 60% water, and contains no carbohydrates, while providing 200 calories in a 100 gram reference amount (table)
It is a rich source (20% or more of the Daily Value, DV) of phosphorus (44% DV) and vitamin D (45% DV), and a moderate source of iron (11% DV)
Tuna provides numerous health benefits, including lowering blood pressure, enhancing the immune system, and strengthening bones Additionally, it may help reduce the risk of cancer, support weight loss, improve blood circulation, and prevent skin and kidney infections.
Mercury levels in tuna can vary significantly, prompting the American Medical Association to advocate for better warnings regarding the potential risks A 2008 study indicated that the mercury concentration in farmed tuna is inversely related to its lipid content, suggesting that higher lipid levels may dilute mercury levels in the fish Among the various tuna species, mackerel tuna has lower mercury concentrations compared to skipjack and yellowfin, but it is often considered a lower-grade option for canning due to its "black meat" or "dark meat" designation, which is associated with less desirable color, flavor, and yield.
In March 2004, the FDA recommended that pregnant women, nursing mothers, and children limit their consumption of tuna and other predatory fish due to mercury concerns The EPA suggests that individuals weighing less than 110 pounds should consume no more than one 6-ounce can of light tuna per week, while those over this weight can safely eat two cans weekly However, reports in 2007 indicated that certain canned light tunas, particularly yellowfin, contain higher mercury levels than skipjack, prompting advocacy groups to advise pregnant women against eating canned tuna In 2009, a California appeals court ruled that canned tuna does not require warning labels since methylmercury is a naturally occurring substance.
A January 2008 report indicated alarming mercury levels in specific types of sushi tuna, suggesting that the contamination was severe enough for the Food and Drug Administration to consider legal measures to remove these fish from the market.
Frozen whole round tuna (Raw material)
OVERVIEW OF TUNA EXPORTING
1.2.1 Definition a The concept of export
According to Article 28, Clause 1 of the 2005 Vietnam Commercial Law,
Exporting goods refers to the process of moving products out of Vietnam or into designated special areas within Vietnamese territory, recognized as maritime zones with specific legal authority.
Export activities span various sectors and economic conditions, encompassing the trade of consumer goods, machinery, equipment, and high technology These exchanges contribute significantly to the country's economic growth and development.
Exporting occurs extensively across various timeframes and geographical locations, ranging from short-term transactions to long-lasting trade relationships It can involve the entire territory of a single nation or encompass multiple countries Understanding the concept of exported goods is essential in this context.
The World Trade Organization (WTO) defines exported goods as tangible products manufactured or processed in facilities designated for export, aimed at international markets and subject to customs clearance This category also includes goods that are temporarily imported and subsequently re-exported, distinguishing them from items consumed domestically.
According to the Ministry of Transport (2018), exported goods are defined as items originating from Vietnam and being sent to foreign destinations Exports encompass both goods and services produced domestically but sold and consumed internationally.
To successfully export goods, they must align with the consumption needs of the importing country, ensuring that quality meets consumer, technical, and environmental standards Additionally, these products should be highly competitive in the target market.
1.2.2 Forms of exporting tuna a Direct export
Direct export remains the predominant method of exporting goods today, involving a direct agreement between the buyer and seller through a foreign trade contract This contract must adhere to the legal requirements of both countries while also aligning with international sales and purchase regulations.
The seller can be the entity that directly produces the goods, or the trading company that collects domestic goods and then signs a foreign trade contract with a foreign buyer
Direct import and export enable exporters and importers to accurately understand market demand, quantity, and pricing, allowing them to adapt effectively for enhanced international competitiveness and profitability This approach ensures that profits are not diluted among multiple parties, allowing both buyers and sellers to maximize their benefits based on their capabilities.
To succeed in international trade, companies must invest significantly in research, marketing, and hiring experienced staff who understand the relevant languages, customs, and both domestic and international laws Consequently, only large companies with substantial sales and well-defined import-export objectives are likely to achieve favorable outcomes in this arena Indirect export, also known as entrusted export, is one potential strategy for these companies.
Indirect export is the supply of goods to a foreign market through export intermediaries such as agents or brokers It can be agencies, representative offices, import and export entrustment companies
Small, start-up businesses frequently utilize export entrustment due to their limited experience in the export market and constraints in human resources Additionally, they face procedural barriers and regulatory challenges that make this approach advantageous for navigating the complexities of international trade.
According to the Vietnam Commercial Law (2005), commercial processing refers to a business activity in which the processor utilizes some or all of the raw materials provided by the ordering party to carry out one or more stages of the production process, as requested by the outsourcing party, in exchange for remuneration.
Outsourcing has become a popular trend in recent years, where domestic companies serve as outsourcing units These companies receive production materials, including machinery and raw materials, from abroad to fulfill specific orders The quantity of goods produced is determined by the buyer's requirements, and the finished products are then exported to foreign markets.
In addition to popular export methods, businesses aiming to diversify and mitigate risks can also consider site export as an effective option.
On-site export occurs when a foreign buyer purchases goods without the need for them to cross international borders, as the entire export process is conducted within the selling unit's territory.
On-the-spot export has become a popular choice for many Vietnamese enterprises, offering advantages over traditional export methods This approach allows businesses to save both costs and time while benefiting from various tax incentives Additionally, it includes the option of temporary import for re-export, further enhancing its appeal for exporters.
DETERMINANTS OF EXPORTING
Figure 1.2: Constituents of business environment 1.3.1 Determinants in the macro environment a Economic environment
The economic development of a country's enterprises plays a crucial role in capital mobilization, influencing both the scale and speed of capital turnover Additionally, it impacts the availability of labor resources and the extent of government support.
High inflation negatively impacts exporters by reducing the amount of domestic currency received for foreign currency earnings This economic condition not only raises export costs but also diminishes the overall profits of enterprises, making it a significant factor affecting their export performance.
The exchange rate plays a crucial role in a country's economy by influencing the relative prices of domestic and international goods When the exchange rate increases, the value of the local currency decreases, benefiting exporters who receive more domestic currency for the same amount of foreign currency This dynamic fosters growth in exports and stimulates economic development.
A tariff is a tax imposed on each unit of exported goods, primarily used to regulate the volume of imports and exports while also contributing to state budget revenues In the current economic climate, tariffs are selectively applied to a limited number of items.
Quotas, as a form of non-tariff barrier, limit the volume of goods that can be imported into a country, creating challenges for exporters by reducing their expected profits.
Export subsidies are implemented by governments to boost the competitiveness of domestic goods in the global market by increasing export levels While these subsidies raise the price of domestic products, they simultaneously decrease local consumption and enhance export output.
Government trade policies also affect business exports Depending on the goals and orientation of economic development, the government will issue policies to encourage or restrict import and export
The global economic landscape significantly influences export operations, impacting both the importer's input costs and the exporter's demand in the international market Additionally, the political and legal environment plays a crucial role in shaping these dynamics.
The political regime of a country significantly impacts business operations, as a stable political environment fosters favorable conditions for investors to engage in production and trade Conversely, an unstable political climate introduces various risks, such as faction disputes and civil unrest, which can jeopardize business activities Consequently, export traders must thoroughly research their target markets to effectively navigate political fluctuations and mitigate potential damages.
Export activities involve many countries around the world The legal system in each country is different associated with the level of development of that country Exporters must comply with:
- Policies and regulations related to export: taxes, regulations on export products
- Signed international trade treaties and agreements
- Legal issues and international trade practices (Incoterms 2000, Incoterms 2010, Convention 1980 and so on) c Cultural and social environment
Cultural differences in living environments, customs, and beliefs across countries significantly influence consumer preferences and product demands As a result, export businesses must continuously research and understand these market variations to make informed decisions that align with local social cultures.
The socio-cultural environment encompasses ethical, aesthetic, lifestyle, and professional perspectives, along with traditional customs, societal attitudes, and priorities Understanding these elements, along with population density and distribution, is crucial for managers exploring export markets The characteristics of a population are intrinsically linked to its socio-cultural context As the saying goes, "customize entry"; thus, exporting goods necessitates a deep comprehension of the local way of life, thought processes, needs, and preferences It is essential to thoroughly analyze these factors not only in the present but also in their evolving dynamics across different markets.
The technology landscape is shaped by emerging innovations, government support for research and development (R&D), and concerns regarding intellectual property protection In an interconnected world marked by rapid scientific and technological advancements, the science and technology environment significantly impacts corporate strategies.
The advancement of science and technology enhances enterprises' ability to scale operations, boost productivity, and improve efficiency, all while reducing costs and time in production Exporters leveraging these technological achievements can streamline the export process and effectively manage their goods Additionally, robust information technology systems enable exporters to access vital international product and market insights, fostering global cooperation and expanding international relations, ultimately driving the growth of export activities.
Businesses that swiftly understand and implement advancements in science and technology can navigate the challenges of technological innovation, positioning themselves to seize opportunities for success in the marketplace.
Geographical distance between countries significantly influences transportation costs, contract performance times, and decisions related to source and market selection Countries with seaports typically incur lower costs compared to those without, making them more favorable for international trade and the purchase and sale of goods.
Weather significantly impacts shipping speed and delivery times, as adverse conditions at sea can cause delays or even complete trip cancellations, leading to economic repercussions for all parties involved These weather-related issues can compromise the quality of goods and are a common source of disputes Additionally, they serve as a basis for establishing force majeure cases and provide legal immunity for freight forwarders.
INTERNATIONAL EXPERIENCE OF TUNA EXPORTING
Thailand and Vietnam share similarities in geographical location, climate, and natural conditions However, Thailand stands out as the world's oldest and largest producer and exporter of high-quality tuna, particularly renowned for its canned tuna products In contrast, Vietnam primarily exports lower-priced tuna and lacks a strong brand presence in the global market.
The Thai tuna industry prioritizes food hygiene and safety, viewing it as essential for its survival Thailand stands out as one of the few countries, being the first to implement the HACCP quality control system across all tuna exporting enterprises.
The Thai government has consistently supported offshore fishermen by establishing robust fleets and developing essential seaports to enhance the fisheries sector Notably, Phuket fishing port has emerged as Thailand's leading tuna port, playing a crucial role in securing raw materials for export.
Despite Thailand's significant tuna exploitation to meet high export demand, the country still relies on tuna imports The Thai government's support has streamlined the import process, making it quick and efficient This approach to importing large quantities of raw tuna to stabilize supply could serve as a valuable lesson for the Vietnamese tuna industry, which currently faces challenges due to an unstable supply of raw materials.
Thailand has emerged as a leader in the canned tuna export market, largely due to the foresight of Thai businesses like Thai Union Recognizing the untapped potential of the US market, Thai Union took the initiative to explore this opportunity when no other companies were involved Their collaboration with an American firm enabled them to enhance their production and processing techniques for high-quality canned tuna This strategic approach, combined with a commitment to quality assurance and experience gained from entering a competitive market, has propelled the Thai tuna export industry to rapid growth and solidified its position as the top exporter globally.
The Philippines and Vietnam share striking similarities in natural conditions and climate, both located near the East Sea and boasting extensive maritime territories As leading tuna exporters, the Philippines ranks 5th globally and 3rd in canned tuna exports, solidifying its position as a key player in the Western and Central Pacific region.
Lessons learned from the Philippines
The Philippine fishing fleet is carefully invested with an advanced refrigeration system, which helps to preserve tuna longer with better quality, so that the tuna always ensures quality
The Philippines has made significant investments in constructing comprehensive fishing port complexes, featuring closed wharf systems, cold storage facilities, processing areas, water plants, substations, and waste processing plants Notably, General Santos has emerged as a key player in this development, symbolizing the nation's tuna exports and hosting the renowned Tuna Export Festival, which highlights its global significance in the fishing industry.
The Philippines has rapidly implemented the HACCP quality control system in its tuna industry, ensuring strict compliance with ISO 9000 quality management standards This commitment to environmental protection and quality improvement has positioned Filipino tuna as a highly competitive product, gaining acceptance in demanding markets such as the US, EU, and Japan.
The Philippines has successfully negotiated a reduction in export taxes for tuna products to the EU market, offering a valuable lesson for Vietnam Additionally, the Philippines collaborates with importing countries to ensure the quality of tuna products for immediate export, allowing Filipino tuna to consistently meet quality standards and lowering fish inspection costs upon import.
In Chapter 1, the author synthesizes essential knowledge about Vietnam's tuna exportation, exploring key factors that influence this industry Drawing from previous research and articles, the author curates relevant content that aligns with the current context of the Vietnamese economy.
In this chapter, the author presents the theoretical basis of import-export business including 3 main contents as follows:
First, the definition, characteristics, tuna family and popular products of tuna
Vietnam's tuna exporting industry plays a crucial role in the national economy, contributing significantly to both economic growth and employment Key export concepts include various forms of tuna export, such as frozen, canned, and processed products Major exporting enterprises are essential players in this sector, driving innovation and ensuring quality standards Overall, the tuna export activities not only enhance Vietnam's global trade presence but also support local communities and businesses involved in the supply chain.
Third, theories on factors affecting export activities and international experience on tuna export
Chapter 1 presented the most basic knowledge and content which serves as the basis for the paper and later analysis.
DETERMINANTS OF VIETNAM’S TUNA EXPORT INTO
SITUATION OF TRADE AND TUNA EXPORT IN INTERNATIONAL
2.1.1 Situation of tuna trade in international market
The global tuna market was valued at approximately US$ 39.3 billion in 2020 and is projected to grow to US$ 47.7 billion by 2026, according to IMARC's analysis However, the ongoing uncertainties in global tuna trade are influenced by the indirect effects of the Covid-19 pandemic.
Tuna, a member of the mackerel fish family, plays a crucial role in the global fishing industry and is popular worldwide in various forms, including fresh, frozen, canned, and as sushi Approximately 60% of the world's tuna supply is sourced from the West and Central Pacific Ocean (WPCO), making it a staple for consumers, restaurants, and canning companies alike.
The global tuna market is experiencing growth driven by the rising demand for canned tuna, particularly due to the increasing preference for ready-to-eat meals in today's fast-paced lifestyle Europe leads in canned tuna imports, while Middle Eastern nations like Saudi Arabia, Israel, and Egypt are also significant importers, benefitting from low import duties The long shelf life of canned tuna appeals to consumers in rapidly developing countries seeking convenient food options However, a shift towards health consciousness is prompting many to prefer fresh and frozen tuna, with major importers including China, North America, and Western Europe, despite the higher costs associated with these products This trend enhances the economic value of the global tuna trade.
Tuna can be categorized into three main types: canned, fresh, and frozen Canned tuna leads the market, commanding the largest share Among the various species, skipjack tuna is the most prevalent, followed by yellowfin, bigeye, albacore, and bluefin tuna.
Japan stands out as the leading consumer of tuna globally, followed by significant markets such as the USA, Republic of Korea, China, Taiwan P.C., and the European Union Additionally, Japan ranks as the third-largest tuna producer worldwide, with key production contributions from countries like Indonesia, Vietnam, the Philippines, Taiwan P.C., the Republic of Korea, and Spain.
2.1.2 Situation of international tuna market
The value of the global frozen tuna fillets (HS 030487) has grown by almost 50% since 2015 Vietnam had the highest market share of 24%, followed by South Korea, Indonesia, Spain and China
Table 2.1: The exported value of top 10 countries in the world (2015-2019)
Vietnam has become the globally leading exporter of frozen tuna fillets (HS
Since 2018, the position of tuna supplier has shifted, previously dominated by South Korea In 2019, the primary importers of tuna included the USA (48%), Israel (6%), and Mexico (5%) However, Mexico's tuna catches have declined due to source reduction and fishing bans, leading to a focus on domestic consumption and an increased reliance on imports, primarily from Vietnam Both nations are part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which will gradually reduce tariffs on frozen tuna fillets (HS 0304) from 20% to 0%.
As of January 1, 2021, Vietnam's tuna exports will benefit from a 0% tariff, enhancing their competitiveness against Indonesia, China, and the Philippines, which face a 15% tariff Despite a general decline in demand for fresh tuna, the Vietnamese Association of Seafood Exporters (VASEP) reports a rise in exports of frozen and canned tuna to markets such as Portugal, the USA, Egypt, and Canada.
In 2020, VASEP reported a significant 65% increase in tuna exports from Vietnam to the EU, following the implementation of the EU-Vietnam Free Trade Agreement (EVFTA) on August 1st While overall growth to the EU was not as strong as anticipated by October, notable surges were seen in exports to specific countries, with the Netherlands, Italy, and Germany experiencing increases of 210%, 200%, and 119%, respectively.
However, Vietnam has been received a “yellow card” from the European Committee (EC) on Illegal, unreported and unregulated (IUU) fishing since October
Since 2017, the country has been actively combating illegal, unreported, and unregulated (IUU) fishing to regain its status as a sustainable fishing nation The pandemic has further complicated this effort by altering consumption habits across nations, impacting the demand for various types of tuna, including fresh, frozen, and canned products.
South Korea stands out as a major exporter of frozen tuna fillets (HS 030487) and a significant importer in the global tuna market From 2015 to 2017, skipjack tuna landings experienced a remarkable annual growth of 15%, stabilizing in 2018 before a 10% decline in 2019, largely driven by rising domestic demand for this protein source Additionally, Vietnam has made notable strides in global tuna exports, while Japan, a key importer, has been reducing its imports annually due to a growing preference for domestically caught tuna and the increased availability of processed tuna products from China and Thailand.
The global pandemic has significantly impacted fresh tuna exports, particularly to Japan, where a decline in imports had already begun prior to the crisis This ongoing trend is expected to adversely affect South Korean tuna exports in this market segment.
Indonesia ranks third in global exports of frozen tuna fillets (HS 030487), with the USA accounting for 75% of imports, followed by Japan (9%), Vietnam (5%), France (3%), and Australia (2%) in 2019 The country experienced a significant surge in export value, rising from USD 93.727 million in 2017 to USD 202.479 million in 2018 The popularity of frozen fillets, particularly in the USA and Japan, has driven this growth, and this positive trend is anticipated to persist in the coming years.
The pandemic has reduced the tuna industry's workforce in Bali to just 30% of its normal capacity, leading to a significant decline in production to 40% Additionally, severe storms in Southern Java have adversely affected yellowfin tuna production, as bad weather has limited fishing fleets and forced fish to deeper waters, making them harder to catch Consequently, daily production has dropped from an average of 2-3 metric tons to approximately 1 metric ton This challenging situation is expected to persist until the second week of November 2020, potentially impacting tuna prices.
In terms of value exports for prepared or preserved tuna (excluding minced) (HS
160414), Thailand had the highest share value with 29%, followed by Ecuador, Spain and China The total value of top 10 exporters accounted for 79% of the world market share in 2020
Figure 2.1: The market shares of top 10 tuna exporters in the world in 2020 (HS
Since 2015, the global import value of frozen tuna fillets (HS 030487) has surged by nearly 44% Japan leads the market with a significant share of 42%, followed by the USA, South Korea, and France.
Table 2.2: The imported value of top 10 countries in the world (2015-2019)
EcuadorSpainChinaPhilippinesIndonesiaNetherlandsMauritiusVietnamItalyOthers
Japan has long been the leading consumer of frozen tuna fillets, with imports reaching USD 813,992K in 2018, nearly double that of the USA at USD 477,461K The Japanese culinary tradition places a high value on bluefin tuna, particularly for its premium quality meat used in sashimi Despite a gradual increase in bluefin tuna landings from 28K MT in 2015 to 32K MT in 2018, strict regulations due to concerns about overfishing necessitate imports to satisfy local demand Recently, Japanese buyers have shown a growing preference for deep-frozen tuna fillets over whole tuna and favor locally caught fresh tuna over imported varieties.
OVERVIEW OF FISHING AND EXPORTING TUNA IN VIET NAM
2.2.1 Overview of the situation of fishing and processing tuna in Viet Nam
The fishing industry is characterized by a small scale, with most fishing vessels under 90 hp Fishermen operate sparsely with small fishing boats, mainly catching tuna inshore with poor yield
Tuna fishing in central Vietnam and the East Sea is a significant activity for offshore fishermen, despite tuna representing only about 2% of the total fishery value The primary species targeted include skipjack, which is available year-round, along with bigeye and yellowfin tuna, primarily caught from December to June Fishermen utilize methods such as longlining, gillnetting, and seine nets to capture these fish Although exact statistics on the number of tuna ports operated by Vietnamese fleets are unavailable, the catch by offshore fleets has reportedly increased at least fourfold since 2010, largely driven by the rise in skipjack tuna catches.
According to the Directorate of Fisheries (2017), as of 2017, the whole country had about 4,180 tuna fishing boats, mainly in the central provinces (Binh Dinh, Phu
United States of America Italy
SpainFranceUnited KingdomGermanyNetherlandsJapanSaudi ArabiaAustraliaOthers
Yen, Khanh Hoa) In which, the group of fishing vessels with a capacity of 50-89
CV accounts for about 4.5%; fishing vessels from 90-149 CV accounted for 3.4%; fishing vessels from 150-249 CV accounted for 7.9%; fishing vessels from 250-399
In the country, vessels with a capacity of 400 CV or more represent 53.85% of the total tuna fishing fleet, while those with a capacity of 30.3% are also significant Overall, the total number of tuna fishing vessels is experiencing an annual growth rate of approximately 12.4%.
Table 2.3 Structure of Vietnam's tuna fishing vessels in the period 2011-2017
Source: Fisheries Department (General Department of Fisheries), statistics for the period 2010-
In 2017, Vietnam's total tuna catch reached approximately 123,080 tons, with ocean tuna comprising about 49,150 tons, or 40% of the country's overall production Binh Dinh contributed 38.4% (18,870 tons), Phu Yen accounted for 14.9% (7,310 tons), and Khanh Hoa represented 46.7% (22,970 tons) Between 2011 and 2017, the tuna production in Vietnam experienced an annual growth rate of 12.4%, with regional variations: Binh Dinh saw a growth of 12.8% per year, Phu Yen increased by 8.04% per year, and Khanh Hoa grew by 13.6% per year.
Table 2.4 Tuna catches in Vietnam in the period 2011-2017 (unit: tons)
Source: Fisheries Department (General Department of Fisheries), statistics for the period 2010-
Between 2011 and 2017, Vietnam experienced a significant decline in fishing productivity, with an average decrease of 7.1% per year for general fishing and 2.6% per year for seine fishing However, the productivity of skipjack tuna saw a remarkable increase of 16.3% per year, contributing to an overall growth of 1.4% in the tuna industry In Binh Dinh province, fishing productivity rose by 2.9% per year, contrasting sharply with a dramatic decline of 71.4% per year in the gill-fishing sector.
Table 2.5: Tuna fishing productivity in Vietnam in the period 2011-2017 (unit: tons/vessel/year)
Source: Fisheries Department (General Department of Fisheries), statistics for the period 2010-
Most tuna processing factories are certified with the HACCP quality management system and possess the EU export code They utilize various freezing methods, including contact freezing (CF), wind chillers, and bulk freezers (IQFs), to preserve their products While some factories use contact freezing primarily for block tuna products like steamed skipjack loin, others lack dedicated IQF equipment for freezing different tuna types such as steaks, saku, and cubes Additionally, many facilities are equipped with deep freezing technology (-60°C) to ensure high-quality, value-added products.
Canning factories are equipped with essential steaming, boiler, seaming, and pasteurization equipment to ensure their canned products meet export standards for the EU and US markets In Japan, some factories also manufacture their own boxes and packaging Frozen tuna products are processed in various forms, including whole tuna without viscera, decapitated frozen organs, and fillets that may be skin-on, boneless, or skinless Additional options include frozen sliced tuna, with or without skin, and frozen tuna in cube or saku forms, all available with or without CO treatment, as well as frozen steamed tuna loin.
2.2.2 Overview of the situation of Vietnam’s tuna export to international market from 2000 to 2020
Vietnam is a major player in the global tuna market, exporting significant quantities of fresh, frozen, canned, and vacuum-packed fillets, as reported by UN Comtrade (2017) The country's top tuna exports include yellowfin, bigeye, and skipjack tuna.
Figure 2.3 Export turnover of Vietnam’s tuna from 2001 to 2020
From 2001 to 2020, Vietnamese tuna exports exhibited a positive trend, with export values rising from USD 33.95 million in 2001 to USD 624.89 million in 2019 However, in 2020, the export value experienced a notable decline to USD 565.97 million, largely attributed to adverse impacts in the market.
Year Export value (thousand USD) Annual growth (%) of the Covid-19 pandemic
Figure 2.4: Import value of top 5 import markets of Vietnam's tuna from 2010 to
Between 2010 and 2020, the United States remained Vietnam's most significant tuna export market, holding a 45% share in 2020, followed by the European Union at 25% Other notable import destinations included ASEAN (6%), Japan (4%), and Israel (3%) Collectively, these top five markets accounted for about 83% of Vietnam's total tuna export value in 2020.
Impo rt valu e (th o u san d U SD)
USA EU ASEAN ISR JPN
Figure 2.5: The market shares of Vietnam’s tuna export in 2020
Key exported tuna products of Vietnam
HS code 030487: Frozen fillets of tuna of the genus Thunnus, skipjack, or stripe- bellied bonito Euthynnus pelamis
In 2020, frozen fillets from the genus Thunnus, along with skipjack and stripe-bellied bonito (Euthynnus pelamis), emerged as the primary exported products, representing 42% of Vietnam's total tuna export turnover, as highlighted by data from ITC.
2001 to 2020 The tuna products were only exported in 2012, rising rapidly from
73603 thousand USD in 2012 to 328634 thousand USD in 2019
Table 2.6: Export value of Vietnam’s tuna with HS code 030487 and HS code
USA EU ASEAN ISR JPN Others
HS code 160414: Prepared or preserved tunas, skipjack, and Atlantic bonito, whole or in pieces (excluding minced)
Tuna products, whether prepared or preserved, have a long history of exportation, with their export value showing slight fluctuations but generally trending upward over time Notably, in 2020, the export turnover associated with the relevant HS code accounted for more than 53% of Vietnam's total tuna export value.
2.3 DETERMINANTS OF VIETNAM’S TUNA EXPORT TO
As reported by Puspi Eko Wiranthi, Iwan Aminudin, Eka Rachmawati Dewi (2019)
The gravity model, inspired by Newton's law of gravity, is utilized to examine both economic and non-economic factors influencing trade between two nations Initially introduced in international trade analysis by Tinbergen, this model helps to understand the dynamics of trade relationships.
In 1962, an analysis of trade flow among European countries was conducted, laying the groundwork for subsequent empirical studies Notably, Rabbani, Dey, and Singh (2011) found that the GDP and population of importing countries, particularly China, have positive effects on trade dynamics.
Vietnam, and Thailand) Likewise, the production has a positive effect on tuna trade flow from Indonesia to Japan (Hidayati & Masyhuri, 2015) Natale, Borrello, &
Motova, A (2015) also finds a negative effect of economic distance on seafood trade.”
To evaluate the impact of factors affecting the ability to export tuna products, the author proposes to use the Gravity Model
LnEx ijt = β 0 + β 1 lnGDP jt + β 2 lnDIS ij + β 3 lnPOP jt + β 4 lnREL ijt + β 5 lnTF ijt + β6
WTO it + β7RTA ij + uijt
Ln: the natural logarithm of a number
Ex ijt : trade value of Vietnam's tuna exports to country j in year t
GDP jt : country's gross domestic product j GDP represents the size of the economy
POP jt : total population of importing country j in year t
DIS ij : The distance between Vietnam and country j, which is adjusted for the share of trade
The Religious Proximity Index (RELijt) measures the similarity in religious composition between exporting and importing countries by calculating the combined shares of Catholics, Protestants, and Muslims This index ranges from 0 to 1, achieving its highest value when both countries share the same predominant religion.
(1) comprises a vast majority of the population, and (2) is the same in both countries
TF ijt : Trade flows as reported by the exporter, thousand USD
WTO it : dummy variable, WTO = 1 if country i currently is a WTO member
RTA ij : dummy variable, RTA = 1 if the pair currently has a RTA u ijt : error β: Coefficient i: exporting country j: importing country t: time (year)
The data employed in this study were collected from 1996 to 2019, covering
Vietnam exports tuna to 87 countries, selected based on data availability and global export destinations Key metrics such as GDP and population figures are sourced from the World Bank, while geographical distances are obtained from the Center d'Etudes Prospectives et d'Informations Internationales (CEPII) Information regarding World Trade Organization (WTO) membership is referenced from WTO data, and trade flow statistics are derived from UN Comtrade reports Additionally, the religious proximity index is based on the research conducted by Disdier and Mayer in 2007, providing a comprehensive overview of regional trade dynamics.
EVALUATION OF VIETNAM’S TUNA EXPORT TO
Tuna is one of the significant export seafood products of Vietnam After shrimp and tra fish, tuna always maintains 21-22% in the proportion of Vietnam's total seafood exports
In 2019, Vietnam's tuna exports surged by 10.2% compared to the previous year, totaling over 719 million USD, as reported by the Vietnam Association of Seafood Exporters and Producers Vietnamese tuna successfully reached 108 markets, with the top eight importers— the US, EU, ASEAN, Israel, Japan, Canada, Mexico, and China—accounting for 87% of the country's total tuna export revenue.
In 2019, the total value of tuna exports from Vietnam to the US reached $316 million, marking a nearly 38% increase from 2018 and representing 44% of Vietnam's total tuna exports The US market showed a positive consumption trend, particularly for canned tuna products Additionally, the US-China trade war prompted American tuna importers to seek alternative suppliers, leading to Vietnam maintaining its position as the second-largest tuna supplier to the US, following Thailand.
For other markets, Vietnam is holding 10% market share in the Canadian tuna market Vietnam's tuna export value has tended to grow continuously from June
From 2018 to May 2019, Vietnam's tuna exports to Canada surged to 9.8 million USD, marking a remarkable 93% increase compared to the same period in 2018 Notably, processed tuna exports to Canada skyrocketed by 245% year-on-year By August 2020, Vietnam not only expanded its tuna exports to Canada and Egypt but also saw a significant 238% increase in exports to Israel Furthermore, Vietnam remains the largest supplier of frozen tuna loin to the Mexican market.
The Vietnamese tuna industry faces significant challenges due to the unstable supply of raw tuna, which is insufficient for domestic production and export needs, leading to reliance on imports To qualify for preferential tax rates under the EU Agreement, tuna products must be wholly obtained, meaning they must be caught by Vietnamese-flagged vessels in Vietnam's waters Additionally, the European Commission's yellow card issued to Vietnam's seafood industry on October 23, 2017, further complicates compliance with these requirements.
Vietnam's tuna exports face quality challenges despite the excellent quality of wild tuna in its waters The competitiveness of exported tuna is hindered by various factors that affect overall quality.
The tuna fishing fleet largely relies on outdated, small boats that often struggle to operate in adverse weather conditions, posing significant risks to fishermen venturing offshore.
Fisheries services have still underdeveloped and not supported fishermen in offshore fishing Due to delayed movement of caught ocean tuna, the export capacity of this item is reduced
The infrastructure for tuna fishing remains inadequate, failing to meet evolving industry standards While there are several well-equipped fishing ports, such as Thuan Phuoc in Da Nang, Sa Huynh in Quang Ngai, Tam Quan Bac in Binh Dinh, and Tien Chau in Phu Yen, these facilities lack regular upgrades Additionally, existing fishing ports and fish markets cater to various seafood types but do not include specialized port systems dedicated to tuna products.
The current technology for the preliminary processing and preservation of fish post-catch remains outdated and lacks a scientific foundation Fishermen primarily rely on traditional methods, utilizing crushed ice and salt based on their seafaring experience.
The absence of standardized scientific procedures for evaluating ocean tuna quality post-catch and during transport poses significant challenges for fishermen and traders This lack of assessment standards complicates the classification of tuna, hindering their ability to identify and select the highest quality raw materials for production and export.
Advertising and trade promotion efforts for Vietnamese tuna in international markets remain insufficient Despite the Directorate of Fisheries and tuna exporters prioritizing these activities to boost brand recognition, there is still a need for stronger initiatives, particularly in key markets like the United States.
EU and Japan, but this activity is considered to be carried out inconsistently and ineffectively The cause is said to be:
Vietnam's tuna production and export companies remain relatively small and lack substantial economic resources, hindering their ability to invest in international brand promotion This challenge is exacerbated by intense competition from well-established corporations in developed countries like Thailand, the Philippines, and Spain, which possess extensive industry experience.
Vietnam's ministries, departments, and sectors have not effectively assisted businesses in enhancing their brand image or in providing timely information, which is crucial for market dominance and sustaining competitive advantages.
The tuna export industry still lacks many specialists who specialize in trade promotion and advertising
The distribution channels for Vietnamese tuna in foreign markets are currently inadequate and require significant improvement Exporters rely heavily on overseas importers to navigate various markets, which limits their control over distribution Additionally, the absence of auction markets hinders access for potential investors and importers Furthermore, there is a lack of guidance from the government for businesses in establishing effective distribution channels and coordinating the overall system for exported tuna.
Vietnamese enterprises face challenges in international market competitiveness, particularly in the tuna export sector Compared to direct competitors like Thailand, Indonesia, the Philippines, and Ecuador, Vietnamese companies have significantly lower revenues For instance, Yueh Chyang, a prominent Vietnamese tuna exporter, reported around USD 70 million in revenue, while Thailand's Thai Union Group achieved over USD 200 million in 2012 (VASEP 2013) This disparity highlights the need for Vietnamese enterprises to enhance their market presence and revenue generation strategies.
Vietnamese businesses often lack the foresight and effective long-term strategies seen in other countries, resulting in a reluctance to invest significantly in market research Unlike successful enterprises like Thai Union, which actively collaborate with major global corporations, Vietnamese companies have yet to embrace such strategic partnerships and investment opportunities.
SOLUTIONS OF FACILITATING VIETNAM’S TUNA
PROSPECT OF VIETNAM’S TUNA EXPORT TO THE GLOBAL
On February 12, 2020, the European Parliament approved the EU-Vietnam Free Trade Agreement (EVFTA), bringing renewed optimism for Vietnam's seafood exports, especially tuna, amidst the challenges posed by the Covid-19 pandemic This agreement presents a significant opportunity for Vietnam, as it will eliminate tariffs on tuna products imported into the EU, with reductions leading to a 0% rate after three years, or offering tax-free quotas.
Once the EVFTA is approved, tariffs on fresh and frozen tuna products will be swiftly eliminated Additionally, the tariffs on frozen canned tuna and fillets will be reduced from 18% to 0% over a three-year period.
For processed tuna used for canned tuna – the basic rate of 24% will be reduced over the 7-year schedule
The annual quota for canned and packaged tuna is set at 11,500 tons, which will be exempt from duties Beyond this quota, a tax rate of 20.5% will be imposed, decreasing by 3.5% each year This tax structure is designed to boost exports to various markets.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has significantly enhanced Vietnam's export opportunities, particularly for goods like tuna, by opening up access to key markets such as Canada, Mexico, and Peru.
Vietnam's seafood exports, particularly tuna, are poised for growth in the Canadian market, thanks to the CPTPP commitments that will lower import taxes on tuna products to 0% upon the Agreement's implementation, down from the current MFN tax of 4-5% This favorable change presents a significant opportunity for Vietnamese tuna to sustain its market share and expand the range of export products available in Canada.
Peru stands out as one of South America's most open economies, characterized by robust economic growth, a stable currency, and low inflation rates This favorable environment makes it an attractive market for Vietnam, offering accessible opportunities for market entry and competition Additionally, Peru serves as a strategic intermediate market, facilitating access to neighboring countries such as Ecuador, Colombia, Bolivia, and the expansive western regions of Brazil.
Peru has pledged to eliminate 80.7% of its tariff lines, which corresponds to 62.1% of Vietnam's import turnover Additionally, tariffs will be removed on 99.4% of tariff lines by the 17th year of the Agreement's implementation In line with CPTPP commitments, import taxes will be progressively reduced and ultimately eliminated by the 16th year after the Agreement takes effect.
Mexico is set to eliminate 77.2% of tariff lines upon the Agreement's implementation, affecting 36.5% of Vietnam's import turnover By the tenth year of the Agreement, tariffs on 98% of line taxes will be removed This presents significant advantages for Vietnamese seafood products, particularly tuna, in the Mexican market.
Participating in new generation Free Trade Agreements (FTAs) like the EVFTA and CPTPP offers significant advantages for Vietnam's tuna sector and the seafood industry as a whole, beyond just the basic benefits of import and export tax reductions.
- Expand export markets, increasing competitiveness compared to competitors without FTAs with partners (for example India, Thailand);
- Attract foreign investment, improve production technology and product quality;
- Creating momentum to open the market, attracting the interest of businesses of both sides;
- Have conditions to participate in the regional supply chain thanks to the investment movement of multinational corporations;
- To ensure a more stable and transparent business and institutional environment (thanks to improved regulations and policies in compliance with the terms of the FTA)
Vietnam's involvement in the CPTPP and FTA agreements opens up opportunities for reduced import and export taxes, yet it also poses challenges for tuna processing and exporting businesses These challenges include navigating rules of origin, overcoming technical barriers, ensuring protection for commercial households, and dealing with heightened competition and labor-related issues.
The current instability of raw material sources, primarily due to reliance on foreign inputs like feed, breeders, chemicals, and antibiotics, has resulted in poor quality and increased disease prevalence Additionally, high production costs compared to other countries lead to elevated product and export prices, ultimately diminishing competitiveness in the market.
To benefit from preferential tariff rates under Free Trade Agreements (FTAs), products must comply with specific rules of origin However, many Vietnamese enterprises struggle to leverage these incentives due to the complexity and abundance of regulations, resulting in only 30% of the available benefits being utilized Enhanced communication and guidance on the application of rules of origin for export goods could significantly improve Vietnamese businesses' ability to capitalize on tariff advantages.
Trade liberalization offers Vietnamese seafood advantages through reduced tariffs; however, it also exposes the industry to non-tariff barriers aimed at protecting domestic markets These barriers include anti-dumping and anti-subsidy duties, stringent chemical and antibiotic testing regulations, and enhanced inspection programs, all of which are likely to increase in the future.
In addition to opportunities and advantages in tax or aggregation, SPS - TBT measures in CPTPP/FTAs pose significant challenges for the seafood industry
Technical, sanitary, and labor regulations may undermine the advantages of tariff reductions for Vietnamese products Additionally, environmental commitments to prohibit harmful fisheries subsidies could negatively impact the development of the fishing industry in Vietnam.
Strong competition in the seafood export market is driven by trade agreements that promote greater market integration Despite the government's efforts to enhance business opportunities through policy changes, the slow pace of administrative reforms poses significant challenges These obstacles hinder the competitiveness of Vietnamese seafood exporters in key import markets Additionally, preferential import taxes on raw materials favor competitive countries like China, Thailand, Bangladesh, Indonesia, and India, making it increasingly difficult for Vietnamese enterprises to secure a larger market share.
SOLUTIONS OF FACILITATING VIETNAM’S TUNA EXPORT TO
3.2.1 Macro policy solutions for the Vietnam’s government and agencies
The solution for the government to complete the policy and database
The government must enhance the fisheries sector by revising and finalizing institutional frameworks, including necessary amendments to legal documents This involves a thorough review and supplementation of regulations governing tuna fishing, processing, and export, ensuring stringent guidelines for the handling of raw materials, preservation, processing, and packaging.
Vietnam is committed to aligning its policies, regulations, and standards for the import of tuna products and raw materials with international standards as stipulated in its Free Trade Agreements (FTAs).
To enhance the standard system for tuna, it is essential to implement regulations on traceability that encompass product quality, ingredients, packaging, labeling, food safety, hygiene, and certification Additionally, regulations should focus on responsible preservation, processing, and export consumption A professional one-stop management approach, aligned with international standards such as SPS, TBT, and Codex, should be adopted in Free Trade Agreements (FTAs) to ensure compliance and efficiency.
To effectively navigate international trade, it is essential to develop a comprehensive database system that includes regularly updated legal regulations, tariff and non-tariff barriers, technical standards, market information, and commitments related to key import markets such as the United States, Japan, and the European Union.
Building a database on international cooperation with traditional and potential partners to serve the industry's international cooperation
Solutions for the seafood industry
To enhance the sustainability of fishing resources and ensure a stable supply of raw materials for export, it is essential to strengthen Fisheries Cooperation Agreements and establish hotlines with other countries This approach will also prioritize the safety of fishermen operating at sea.
Second, strengthen international cooperation in scientific research and technology transfer in order to raise the level of tuna fishing and processing
Leveraging partnerships with developed nations, such as Japan, and collaborating with international organizations can significantly enhance the tuna fishing and processing industry This cooperation will strengthen capacity building, facilitate human resource training, attract investment, and offer essential technical support.
To enhance offshore fishing, it is essential to attract foreign direct investment (FDI) aimed at developing supporting industries Establishing joint ventures will facilitate the creation of modern seafood processing zones that are interconnected, ultimately boosting export capabilities.
To enhance the competitiveness of tuna products, it is essential to address two key areas: first, improving the ability to navigate technical barriers in international seafood trade; and second, fostering the growth of a sustainable industry that produces high-quality products, significantly contributing to export volumes.
The fisheries sector must establish a national seafood industry development strategy focused on shrimp, tra fish, tuna, and tilapia, prioritizing export orientation to drive production and processing This approach aims to enhance the added value of these aquatic products while ensuring their sustainable development.
The seafood industry must prioritize the establishment of a national brand for Vietnamese tuna products This involves creating a Vietnamese tuna brand that adheres to international standards while highlighting the geographical origin of Vietnam.
3.2.2 Recommendations for tuna processing and exporting enterprises
Seafood enterprises must actively diversify their export markets to avoid over-reliance on a single market The Ministry of Industry and Trade should promote Vietnam's participation in free trade agreements and collaborate with the Ministry of Agriculture and Rural Development to support businesses effectively Additionally, companies should enhance trade promotion efforts and seek new market opportunities by participating in auctions, international food fairs, and specialized seafood exhibitions to showcase Vietnamese products and attract potential buyers.
Businesses must stay updated on market conditions and actively address challenges such as trade barriers, anti-dumping lawsuits, and technical obstacles It is essential to adopt a proactive approach rather than remaining passive in navigating these market dynamics.
Businesses should leverage tariff benefits to enhance the export of key and high-potential products, following the tax reduction roadmap in markets that have signed Free Trade Agreements (FTAs) with Vietnam, while also exploring new potential markets.
Vietnam's tuna exports are poised for significant growth, driven by new opportunities in the international market To enhance its global presence, it is essential for the government, ministries, and agencies to implement targeted policies and strategies that promote the Vietnamese tuna brand Additionally, businesses must actively focus on improving their production and operational practices to capitalize on these opportunities.
In Chapter 3, the author outlines solutions to enhance Vietnam's tuna exports, emphasizing the need for macro-level interventions by the government and relevant ministries Key strategies include improving the fisheries sector's institutional framework, updating policies and standards to align with Free Trade Agreements (FTAs), and establishing a comprehensive database to track regulations and collaborate with both traditional and emerging partners in the global tuna market Additionally, Vietnamese tuna exporters are encouraged to diversify their market reach to reduce dependency on a single market, leverage tax benefits from FTAs, and strengthen their capabilities to navigate challenges such as trade barriers, anti-dumping cases, and technical restrictions.