European inflation has a multidimensional impact on Vietnam’s seafood exports

Due to high inflation in Europe, European consumers will have to pay more for each selected item, the trend of cutting consumption is inevitable.

The fierce political upheavals and the energy war in Europe have created a wave of strong inflation in this region.

Not stopping there, this wave created a global domino effect; including Vietnam. Although inflation is under control from the domestic market, Vietnam’s seafood export activities to the European market face multi-dimensional impacts.

Mr. Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), shared that when inflation in Europe increased, commodity prices fluctuated a lot; including food products.

According to a report by the European Union’s data statistics agency eurostat published on July 1, European inflation has been determined from 8.5% to 8.6%. Therefore, European consumers will have to pay more for each selected item, the trend of reducing consumption is inevitable.

However, for food items such as agricultural and aquatic products, even if it wants to cut down, it will be very difficult. Therefore, seafood products entering the European market still have a lot of opportunities for consumption from now until the end of 2022. Meanwhile, low-priced food products can compete with seafood. Vietnam does not have complete information.

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But Mr. Truong Dinh Hoe said that Vietnamese seafood processing and exporting enterprises need to consider carefully in increasing orders in this market, because withdrawing the euro and converting it will lose value, thereby affecting the market. affect product prices from now until the end of 2022.

It can be said that this is the first time in 20 years that the euro has depreciated against the dollar. In the US alone, this is also the first time in 40 years that the US has faced peak inflation, with prices of goods increasing by 18% to 19%.

However, the volatility of the euro on the one hand makes it difficult to convert the euro into Vietnam dong, but many economists estimate that when inflation occurs, this means consumers pay a lot of euros. per unit of goods. When converted will also become commensurate with the cost of production and costs combined.

According to VASEP, seafood prices in Europe are increasing due to the conflict between Russia and Ukraine and the recent trade embargo that has caused disruptions and even disruptions to many important European trade routes.

Russian Alaska pollock to China has been included in the list of products banned from exporting to the US and Europe. The price of tuna in the European market also skyrocketed because the sharp increase in gasoline prices has increased the operating costs of tuna fishing and transporting vessels. Prices of shrimp and salmon are continuing to increase since the beginning of 2022 thanks to the recovery of the market while the supply is limited.

VASEP said that the lack of supply of seafood in Europe is creating a “golden opportunity” for Vietnamese pangasius products to increase market share in these two markets. Previously, the average price of pangasius exported to Europe was only 2.7 USD/kg, in the first 6 months of this year, the export price to this region reached 3.45 USD/kg on average. The price of pangasius exported to the US increased even more strongly, reaching 4.5 USD/kg, the highest ever, while in the past, pangasius exported to the US usually only reached 2.9-3. ,1 USD/kg.

According to economic experts, from world currency developments, the US Federal Reserve (Fed) has moved to raise interest rates by 0.75 percentage points, causing the dollar to skyrocket, surpassing the euro. , making 1 euro can only be converted to 0.99 USD, 19 countries in Europe using the common currency have suffered great economic damage. Therefore, in the coming time, the European Union will have to make moves to adjust the currency in the European community to bring the European economy back to stability.