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 this market in the last months of the year.

According to statistics from Vietnam 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 decrease of 31% in July. In August, exports to this market increased again, but the increase was not high, only 20% compared to the same period.

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 still increased.

With Iran's recent attack on Israel, no tuna businesses have reported being affected. 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 in 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 gulf, 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. The price of imported tuna is higher because of additional transportation costs, and all the 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 waiting for the year-end holidays. If the Israeli market is blocked, inventories will increase, and slow capital circulation will make businesses even more difficult.

Source: VASEP