The richest country in the world increases consumption of Vietnamese lobster and tuna

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), in the first 10 months of 2024, shrimp and tuna exports to the UAE reached more than 7.5 million USD, an increase of more than 35% over the same period in 2023.

Vietnam is currently one of the three largest tuna suppliers to the UAE - Photo: LAM THIEN

The United Arab Emirates (UAE) with Dubai is one of the seven richest and most modern emirates in the world. This is a net importer of seafood, including Vietnamese tiger shrimp and tuna.

In the near future, many export businesses will have a wide path to enter the UAE thanks to incentives from the Comprehensive Economic Partnership Agreement (CEPA) between Vietnam and the United Arab Emirates.

Increased search for seafood

According to VASEP, the UAE ranks 16th in shrimp imports from Vietnam, accounting for about 0.5% of the total shrimp export value to markets, in the period 2018-2022.

Each year, Vietnam exports about 22,000 - 24,000 tons of seafood to the UAE, worth 50-70 million USD.

Mr. Truong Dinh Hoe - General Secretary of the Vietnam Association of Seafood Exporters and Producers - informed that shrimp alone brings in about 20 million USD from the UAE market, but has to compete fiercely with shrimp from India, China, and Ecuador.

"Vietnam is among the top seafood export markets to the UAE. India leads the way, accounting for nearly 70% of the market share because it takes advantage of tariff advantages, followed by Ecuador with 15% of the market share despite only 2 years of penetration. Meanwhile, Vietnam's shrimp market share is only about 7%.

With the newly signed CEPA Agreement, Vietnamese shrimp will enjoy the highest and earliest tax incentives to increase its market share in this market," Mr. Hoe expected.

Proof is that recently online searches for seafood products from partners, consumers, especially young people in the UAE have increased.

"The country is rich, young people love seafood protein, online searches for seafood products are increasing, certainly pushing up seafood consumption in the UAE. People are reducing meat consumption, choosing to eat high-end seafood. Demand for lobster, tuna, scallops and other high-quality fish is increasing," Mr. Hoe added.

Shrimp and tuna "attack" niche markets

According to many businesses, although it is a small market, the UAE is considered a potential market because the demand for seafood is increasing.

Meanwhile, according to the General Department of Customs, Vietnamese tuna exports to the UAE declined in 2020 due to COVID-19, but have since grown steadily, from 1.6 million USD in 2019 to nearly 4 million USD in 2023, an increase of 139% in 5 years.

Although seafood exports to the UAE in the first 10 months of 2024 have not changed dramatically due to the impact of the world's downward trend, businesses are taking advantage of the opportunity to sell shrimp and fish in the UAE niche market.

These include: Ca Mau Seafood Processing and Service Joint Stock Company (accounting for 26.3%), Nanjing Seafood Company Limited (22.8%), Minh Phu Seafood Group Joint Stock Company (14.4%)...

"Vietnam is currently one of the three largest tuna suppliers to the UAE. Tuna imported here is subject to a 5% tax rate, and it is expected that the tax rate will be reduced to 0%. This will increase the competitiveness of Vietnamese tuna products," a business shared.

Currently, many export enterprises are preparing to build a Halal standard certification system; invest in technology, reduce intermediary costs, reduce product prices... to compete with seafood from other countries.

The UAE's per capita consumption of shrimp, tuna... is higher than the world average.

According to VASEP, the UAE is a net importer of seafood. The agricultural economy accounts for less than 1% of the economy, so up to 90% of food demand is imported.

It is estimated that the UAE imports about 250,000 tons of seafood each year, worth 750-800 million USD, and has a personal seafood consumption of 28.6 kg/year, higher than the global average.

Nearly 90% of the UAE population is immigrants, so fish and seafood products are an indispensable part of every traditional meal.

CEPA is the first free trade agreement Vietnam has signed with an Arab country, promoting trade and investment between the two countries to soon increase bilateral turnover to 10 billion USD.

Source: https://tuoitre.vn/xu-so-giau-co-bac-nhat-the-gioi-tang-an-tom-hum-ca-ngu-viet-nam-20241108105646785.htm