Vietnam’s frozen seafood exports to Canada this year had reached just $83 million by the end of August, a sharp decline compared to the same period last year, when exports were nearly $235 million.

According to the Vietnam Trade Office in Canada, the country spends over $2.8 billion annually on seafood imports.

With a market share of 7 per cent, Vietnam ranked third among seafood exporters to Canada in 2022, after the US and China. However, after such a steep decline, it finds itself in sixth place.

Vietnam also reported year-on-year declines in processed seafood, earning only $48 million, down 35.6 per cent.

The Trade Office said the significant decline in seafood exports to Canada can be attributed to several factors.

One of the main factors is the high cost of domestic logistics in Canada, which makes Vietnam’s export prices less competitive compared to nearby South American countries.

Additionally, the poor exchange rate for the Canadian dollar and the country’s economic recession also contribute to the decline.

“It is worth noting that Canada has been actively promoting economic ties with South American countries, which has had a noticeable impact on Vietnam’s seafood exports,” a representative from the Trade Office said.

Canada has significantly increased its imports from Ecuador, Argentina, Chile, and Mexico this year, all of which (except Argentina) have bilateral free trade agreements (FTAs) with the country.