Escalating tensions between Israel and Iran are causing concern among tuna exporters, leading to the suspension of orders.

In recent years, Israel has consistently been Vietnam's leading tuna export market, after the US and the EU. Therefore, the recent escalation of tensions between Israel and Iran is impacting Vietnam's tuna exports to this market. Businesses are worried they may have to halt export orders to Israel in the final months of the year.

Escalating tensions between Israel and Iran are causing concern among tuna exporters, leading to the suspension of 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 over $50 million. The signing of the Vietnam-Israel Free Trade Agreement (VIFTA) on July 25, 2023, created many favorable conditions for Vietnam to boost seafood exports, including tuna, to this market. Therefore, in 2024, tuna exports to this market have experienced continuous high growth since the beginning of the year.

However, in the last three 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 significant, only 20% compared to the same period last year.

It can be said that the Israeli market is a potential export market for Vietnam's tuna industry. Despite the long history of conflicts in the Middle East, tuna exports to this market continue to increase.

Following Iran's recent attack on Israel, no tuna businesses have yet reported being affected. However, exports to this market are likely to fluctuate to some extent in the future.

Furthermore, the Middle East is a central region connecting three continents: Asia, Europe, and Africa. Therefore, if conflict occurs, it could disrupt 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 and the Red Sea.

According to businesses, this year, domestically caught tuna is more difficult to procure than in previous years due to regulations requiring a minimum size for skipjack tuna allowed to be caught, forcing businesses to increase imports. Imported tuna is more expensive because it incurs additional transportation costs, with all financing tied up in the inventory. Furthermore, businesses have just gone through a difficult period with declining exports, relying solely on the year-end holiday season. If the Israeli market becomes congested, inventory increases, and cash flow slows, businesses will face even greater difficulties.

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