Tiếng ViệtThe Situation And Potential for Seafood Exports to The Canadian Market
Seafood Exports to The Canadian. Since the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Vietnam’s seafood exports to the Canadian market have experienced a slight decline of 0.5% during the period of 2018-2021. This decrease can be attributed to the impact of the Covid-19 pandemic, which has increased transportation costs and disrupted Vietnam’s domestic supply chain. As a result, Vietnam has dropped to the fourth-largest seafood exporter to the Canadian market, accounting for a 6% share of Canada’s seafood imports, trailing behind Chile.
However, the demand for seafood imports in the Canadian market has continued to rise significantly, averaging 19% during the 2018-2021 period. In the first nine months of 2022, Vietnam’s seafood exports to Canada experienced a strong growth of 56.5% compared to the same period in 2021, reclaiming its position as the third-largest seafood exporter to the market and surpassing Chile. Currently, Vietnam exports seafood products worth an average of over $160 million annually to Canada. Seafood is the ninth-largest export commodity from Vietnam to Canada.
It is expected that this year, Vietnam’s seafood exports to Canada will surpass the milestone of $200 million for the first time. This indicates a positive outlook for Vietnam’s seafood industry in the Canadian market, with increasing opportunities for growth and market expansion. To capitalize on this potential, Vietnamese seafood exporters should continue to focus on product quality, compliance with regulations, and building strong partnerships with Canadian importers and distributors. Additionally, leveraging the benefits of trade agreements, such as the CPTPP, can further enhance Vietnam’s competitiveness and facilitate trade between the two countries.
Vietnam currently ranks fourth in terms of market share for frozen fish fillet products in Canada.
Currently, the main competitors for HS code 0304 (frozen fish fillets) in Canada are China, Chile, Peru, and Indonesia. It can be observed that the demand for certain types of fish fillets, such as ocean salmon, Gulf salmon, and fatty trout, has been increasing rapidly in Canada over the years, while the demand for freshwater fish, pangasius, and tuna has not shown significant growth and even declined. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has not had a significant immediate impact on the growth of Vietnam’s exports of HS code 0304, which has remained around $50 million per year (less than 3% during the period 2018-2021). Particularly, in 2020 and 2021, due to the COVID-19 situation (including transportation costs and Vietnam’s supply capacity), Vietnam’s exports of HS code 0304 to Canada experienced a decline in ranking from 4th to 5th place. However, HS code 0304 is a product category in Canada with a consistent demand growth over the years, and Vietnam has advantages to not only increase export value but also expand market share, especially as Canada seeks to reduce its imports from China.
In the first 9 months of 2022, with an impressive growth rate of 84.8% compared to the same period in 2021, Vietnam’s exports of HS code 0304 reached $76 million. If this growth trajectory continues, it is projected that Vietnam’s exports could reach nearly $100 million in 2022, doubling the average value during the 2018-2021 period.
An overview of the seafood market in Canada
Seafood Exports to The Canadian. The Canadian seafood industry makes a significant contribution to the Canadian economy. In 2020, Canada’s fishing industry exported CAD 6.4 billion worth of fish and seafood products and employed approximately 68,000 workers in the sector (44,000 in fishing, 4,000 in aquaculture, and nearly 20,000 in seafood processing). The annual catch value for freshwater and offshore fishing averages CAD 2.5 billion, while aquaculture reaches CAD 1 billion, and seafood processing and packaging generates nearly CAD 6 billion.
Canada has 17,000 registered offshore fishing vessels, catching approximately 720,000 tons of primarily fish each year. The value of shellfish alone amounts to over CAD 2 billion with a catch of 344,000 tons, while groundfish is valued at approximately CAD 300 million, and pelagic fish at CAD 150 million. In terms of aquaculture facilities, Canada currently has 881 farms with a production capacity of around 170,000 tons per year. Salmon farming is the main focus, accounting for 120,000 tons annually with a value of CAD 820 million. Additionally, other finfish and shellfish species such as oysters, clams, mussels, and scallops are also cultivated.
In terms of trade, the Canadian fish and seafood industry plays a significant role in both exports and imports. In 2021, Canada exported 619,381 tons of various seafood products, earning approximately CAD 8.8 billion, while importing 572,764 tons of products, equivalent to CAD 4.6 billion. The seafood trade surplus of Canada reached over CAD 4 billion. Canada’s main exported products include lobster, snow crab, and Atlantic salmon, while the country imports various types of seafood from around the world, including tuna and shrimp. It is notable that over 75% of Canada’s domestic catch and aquaculture production is for export purposes.
Currently, Canada ranks as the 8th largest seafood exporter in the world, with a wide customer network spanning over 130 countries. The United States consumes 64% of Canada’s seafood exports, followed by China with 11%, the European Union with 10%, Japan with 4%, and Hong Kong with 2%.
In Canada, the Department of Fisheries and Oceans (DFO) oversees the management of Canada’s seafood resources and works with fishermen across the country to ensure the sustainability of Canada’s oceans and domestic fisheries. They regulate and manage the final production stages of the industry. The DFO establishes guidelines and procedures to support healthy and efficient ecosystems while maintaining fisheries for future generations.
The Agriculture and Agri-Food Canada (AAFC) is responsible for supporting market development and traceability. The Canadian Food Inspection Agency (CFIA) sets policies, requirements, and inspection standards.
Seafood Exports to The Canadian. All seafood products from Canada’s fishing industry must undergo thorough inspection and comply with product and process standards for consumption in both domestic and international markets. These standards also apply to imported seafood products into Canada, ensuring that seafood products are safe and properly identified. An important part of establishing sustainable fisheries in Canada is the certification and monitoring of the origin of fish and seafood products, where they are processed, and how they are sold to Canadian consumers. Certification of seafood products means that producers must provide evidence that their products have been harvested and developed sustainably.
Contact For The Best-Priced Seafood Exports
- Address: Lot III-22, 19/5A St., Tan Binh Industrial Park, Tay Thanh Ward, Tan Phu Dist., HCMC
- Tel: +84 28 3816 5488
- Hotline: +84 94 868 0404
- Email: salesfreshfood@sacofoods.vn
