DNVN - The signing of the European Union (EU) and Thailand Free Trade Agreement (ETFTA) may increase competitive pressure for Vietnamese tuna products in the EU market.
After the EU-Vietnam Free Trade Agreement (EVFTA) took effect, Vietnam's tuna exports to the EU have grown continuously. Export turnover increased from 136 million USD in 2020 to 176 million USD in 2023, an increase of 30%.
Entering 2024, exports to this market bloc will continue to grow positively. By the end of April 2024, tuna export turnover to the EU reached nearly 67 million USD, an increase of 38% over the same period in 2023.
According to Ms. Nguyen Ha - tuna market expert of the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam is currently the 7th largest tuna supplier to the EU market after Ecuador, Seychelles, Papua New Guinea, Mauritius, the Philippines and China. Meanwhile, Thailand ranks 17th. Compared to Thailand, Vietnam's production capacity is much lower.
The effective ETFTA will increase competitive pressure of Vietnamese tuna in the EU market.
After losing the Generalized System of Preferences (GSP) in 2025, Thailand’s tuna exports to the EU have been steadily declining. The country’s tuna exports to the EU have fallen from $155 million in 2015 to $41 million in 2023, a 74% decrease.
Expert Nguyen Ha commented that if the FTA between the EU and Thailand is signed, the EU will likely access the Thai seafood market with a 0% tax rate, including tuna. Up to now, Thai tuna exported to the EU is subject to a 24% tax rate - the highest tax rate in the world, after Thailand lost tax benefits from the EU's Generalized System of Preferences (GSP) in 2015. Currently, Thailand only exports a small amount of yellowfin tuna to the EU for processing.
Thailand has the capacity to supply 600,000 tonnes of canned tuna per year, more than Vietnam. However, unlike Vietnam, Thailand does not have a fishing fleet. Therefore, the country relies mainly on imported raw materials rather than on fishing.
According to Ms. Ha, if comparing the source of raw materials with pure origin (tuna caught by the national fleet), Vietnam has an advantage over Vietnam. However, with the small scale of the fleet, Vietnam's domestic supply of raw materials is not enough to meet the demand for export production.
In addition, while Thailand has had its yellow card removed, Vietnam has not yet done so. Therefore, if the ETFTA comes into effect, although the terms of the agreement are not yet clear, it is certain that Thai tuna exports to the EU will be more favorable. And this will increase the competitive pressure of Vietnamese tuna in this market.
Thu An
Source: https://doanhnghiepvn.vn/kinh-te/thach-thuc-nao-cho-ca-ngu-viet-neu-eu-va-thai-lan-ky-etfta/20240530051902882
Comment (0)