Impressive Growth: Vietnamese Fruit and Vegetable Exports Set to Achieve New Milestone in 2023
According to the Ministry of Agriculture and Rural Development, Vietnamese fruit and vegetable exports have experienced an impressive 68% growth in the first seven months of 2023 compared to the same period in 2022, reaching an impressive $3.23 billion. This surge can be attributed to the robust recovery of China’s buying demand.
In a landmark move, Vietnam’s durian exports have officially been granted a “visa” to the US, signaling a positive push for coconut products and aiming to achieve an export target of over $1 billion in 2023.
The Ministry of Agriculture and Rural Development explains that bilateral agreements signed with China in the previous year have facilitated favorable conditions for Vietnamese fruit and vegetable exports from the beginning of 2023 to the present.
Among the top contributors to this growth are products such as durian, mango, dragon fruit, and bananas. Notably, durian has emerged as the leading fruit category with a potential export value of $1 billion this year.
Vietnamese durian and bananas are gaining popularity in many countries due to their enhanced quality. The prolonged durian harvesting season in Vietnam, spanning from February to October, has led to abundant supply and competitive prices compared to Thailand and the Philippines.
Reports from the Vietnam Fruit and Vegetable Association also highlight durian as a significant growth driver in the export sector. In the first six months of 2023 alone, durian exports reached around $850 million, doubling the entire year of 2022. Impressively, 90% of these exports were destined for China. Forecasts for 2023 anticipate Vietnamese durian exports to achieve $1.2 – $1.5 billion.
Vietnam’s coconut industry has received a major boost as its coconut products have officially been granted access to the US market. This positive development is expected to propel coconut exports to surpass $1 billion in 2023.
Vietnam ranks 7th globally in coconut production, with approximately 188,000 hectares of coconut trees concentrated mainly in provinces such as Bến Tre, Trà Vinh, Tiền Giang, and Vĩnh Long. The country boasts over 90 coconut product-exporting enterprises, including 42 businesses involved in value-added coconut processing.
In addition to durian and coconut, other Vietnamese fruits are experiencing a strong surge in exports to China due to the high demand in this market. Notably, South Korea, the Netherlands, and the United Arab Emirates (UAE) have also witnessed significant growth in Vietnamese fruit and vegetable imports.
Solidifying Export Records
Trần Thanh Hải, Deputy Director-General of the Import and Export Department (Ministry of Industry and Trade), predicts that with the current growth rate, fruit and vegetable exports in the latter half of 2023 hold promising potential for further growth. This is especially true during festive seasons when demand surges in various markets.
For the third and fourth quarters of 2023, the nation is expected to produce nearly 7.6 million tons of major fruit varieties that need substantial consumption. Abundant fruit supply is poised to satisfy upcoming export orders.
To penetrate major and high-value markets, Vietnamese fruit and vegetable products must meet the stringent standards of the US and EU markets. In addition to ensuring quality, Vietnam’s agricultural products must focus on advanced processing techniques, suitable for both small and medium-scale enterprises.
Under the assessment of Đặng Phúc Nguyên, Secretary-General of the Vietnam Fruit and Vegetable Association, if the current export pace is maintained, fruit and vegetable exports could reach $5 billion in 2023, achieving the $5 billion target two years ahead of schedule. The Ministry of Agriculture and Rural Development has set the target of $5 billion for fruit and vegetable exports by 2025 within the framework of the Fruit Tree Development Project until 2025 and 2030.
Recommendations for Better Market Exploitation
Phạm Tất Thắng, from the Institute of Strategic and Policy Studies (Ministry of Industry and Trade), suggests that to leverage the Chinese market more effectively, localities and exporting enterprises should build product brands and pursue formal export channels. This strategy ensures product quality and mitigates unnecessary risks.
Furthermore, localities and production businesses should adopt VietGAP and GlobalGAP standards to meet the increasingly stringent quarantine and inspection regulations imposed by the Chinese government.
Sustainable development should also be a focus. Emphasizing processed fruit and vegetables not only helps control costs but also increases product value by three to four times compared to fresh produce. This approach also extends