Israel-Iran tensions escalate, tuna exporters worry about stopping orders

In recent years, Israel has always been the leading tuna export market of Vietnam, after the US and the EU. Therefore, the recent escalation of tensions between Israel and Iran is affecting Vietnam's tuna exports to this market. Enterprises are worried that they will have to stop exporting orders to the Israeli market in the last months of the year.

Israel-Iran tensions escalate, tuna exporters worry about stopping orders

According to statistics from the General Department of Customs, tuna exports to Israel in 2023 increased by 37% compared to the previous year, reaching more than 50 million USD. On July 25, 2023, the Vietnam - Israel Free Trade Agreement (VIFTA) was signed, creating many favorable conditions for Vietnam to promote seafood exports, including tuna, to this market. Therefore, entering 2024, tuna exports to this market have grown continuously since the beginning of the year.

However, in the past 3 months, exports to this market have shown signs of instability, with a 31% decrease in July. In August, exports to this market increased again but the increase was not high, only 20% compared to the same period last year.

It can be said that the Israeli market is a potential tuna export market for the Vietnamese tuna industry. Although the Middle East has long been plagued by conflicts, tuna exports to this market have continued to increase.

With Iran’s recent attack on Israel, no tuna businesses have reported being affected yet. But in the future, exports to this market will fluctuate more or less.

In addition, the Middle East is the central region of 3 continents: Asia, Europe, Africa, so if a conflict occurs, it can cause congestion of maritime transport, including the Gulf of Aden, which is the shortest route between Europe and Asia. International trade through this strategic route accounts for 12 - 13% of total world trade, and Vietnamese seafood exports also pass through this bay, through the Red Sea.

According to businesses, this year, domestically caught raw tuna is more difficult to purchase than previous years because of regulations on the minimum size of tuna allowed to be caught, so businesses have to increase imports. Imported tuna prices are higher because of additional transportation costs, and finances are tied up in the source of goods. Not to mention, businesses have just gone through a difficult time, with exports declining, and are only looking forward to the year-end holidays. If the Israeli market is blocked, inventories will increase, and capital will flow slowly, making businesses even more difficult.

Source: https://congthuong.vn/cang-thang-israel-iran-leo-thang-doanh-nghiep-xuat-khau-ca-ngu-lo-lang-ngung-don-hang-352854.html