Vietnamse tuna confronts growing competition in the Canadian market
Canada remains one of Vietnam’s top five tuna export destinations. However, over the past two years, economic challenges and increasing competition have led to a slowdown in Vietnam’s tuna export growth to this market.
Sharp decline in processed and canned tuna shipments
According to Vietnam Customs, after reaching a record-high of nearly USD 52 million in 2022, Vietnam’s tuna exports to Canada dropped to USD 39 million in 2024, reflecting a 25% decrease. While 2024 saw a recovery compared to 2023, growth was uneven throughout the year, with a noticeable slowdown towards the end.
Frozen tuna meat/loins (HS0304) and canned tuna (HS16) remain Vietnam’s primary export categories to Canada. In 2024, exports of frozen tuna meat/loins surged by 42%, whereas canned tuna exports declined by 16% year-on-year.
Following the implementation of the CPTPP, Vietnam’s canned tuna exports (HS16) to Canada grew significantly. However, a shortfall in skipjack tuna supply from Vietnam’s domestic fleet has constrained export volumes—not only to the EU but also to key FTA partners like Canada.
Tariff incentives no longer a unique advantage
Vietnam is currently Canada’s third-largest tuna supplier. Under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Vietnam’s tuna exports to Canada have enjoyed duty-free access since early 2019. Specifically, tariffs on canned tuna were reduced from 5.75% to 0%, which has fueled Vietnam’s tuna exports to this market over the past six years.
However, as global trade integration deepens, free trade agreements (FTAs) are becoming more widespread. Canada is actively expanding its trade partnerships, including agreements with key competitors in the tuna industry, such as Ecuador.
After extended negotiations, Canada and Ecuador have reached a comprehensive trade agreement that enhances market access for goods, services, and investments. This upcoming agreement includes tariff reductions on over 2,000 Ecuadorian products, including tuna. With a strong fishing fleet, strategic geographic advantages, and the forthcoming tariff benefits under this FTA, Ecuador is emerging as a strong contender in the Canadian tuna market.
Additionally, Indonesia is also ramping up its tuna exports to Canada, particularly in the canned tuna segment, according to the country’s Ministry of Fisheries.
These developments are intensifying competition in the Canadian tuna market. As tariff advantages become more widely available, Vietnam will need to strengthen its domestic raw material supply to remain competitive against countries with FTAs with Canada.
VFM
