Insight:
- Vietnamese fruit and vegetable exports are projected to reach over USD 7 billion in 2024, with USD 4.5–5 billion expected from the Chinese market.
- Fruit and vegetable exports are currently at their highest levels ever, with durian being the leading product, achieving a value of USD 2.5 billion.
The growth in exports to major markets such as China, the US, and South Korea boosted fruit and vegetable exports in Vietnam, especially this year. According to the first nine years of 2024, the export turnover has reached 5.64 billion USD, an increase of 33.9% compared to the same period last year.
The highlight of the Chinese market
The General Department of Vietnam report shows that export turnover continuously sets new records. In September 2024, Vietnam’s fruit and veggie exports reached 917.25 billion USD, an 8.7% increase from the previous month and a 37.6% increase compared to the previous period. In summary, in the first nine months of 2024, fruit and veggie exports reached 5.64 billion USD and experienced a 33.9% increase compared to the same period last year.
The Vietnam Fruit and Vegetable Association released that this product’s export revenues are at an all-time high, led by durian. Durian contributes 2.5 billion USD in value and has become one of the leading export products. Other fruits like dragon fruit, bananas, jackfruit, and mangoes assert their position in the market.
The reason is that Chinese consumers have more demand for Vietnamese durian, bananas, and mangoes. In the US, agriculture from Vietnam has also approached market access over the past nine months.
China and the USA are both the largest markets, but China has the highest importing from Vietnam, with revenues surpassing 3 billion USD between January and September, which increased 36% over the same period last year. The top markets, such as the US, South Korea, and Thailand, also have import values growing between 35 and 90%.
In the first eight months of 2023, China had the largest market import of Vietnamese fruits, with turnover reaching 2.93 billion USD, accounting for 64% of the total market share. The next is the US and South Korea, with export turnover reaching 223.5 billion USD and 223 million USD, respectively, increasing by 31% and 51% over the same period last year, accounting for 4.88% and 4.87% of the market share, respectively.
Notably, Thailand has risen to 4th place in the list of importers of fruits and vegetables from Vietnam. In the first eight months of 2024, the export turnover of fruits and vegetables to Thailand reached 141 million USD, up 70% compared to last year.
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The challenges of Vietnam’s fruit and veggie export
Despite impressive growth, competition in the Chinese market is becoming increasingly fierce. Experts recommend that Vietnamese businesses focus on enhancing quality, diversifying products, and improving technology and production processes. While this is a highly potential field, there are still many significant challenges, such as:
- Production Process Challenges: Currently, Vietnamese suppliers face difficulties like ensuring product quality, low yield, and limited productivity. Some areas haven’t met international standards for supplying to global markets, hindering access for export to other countries. Furthermore, the prevalence of small-scale, unlinked farms with limited resources makes it challenging for suppliers to maintain consistent quality.
- Export Challenges: Currently, Vietnam’s export markets remain limited, and accessing demanding markets like Japan, the EU, and the US poses significant challenges. Limited post-harvest infrastructure, including a shortage of cold storage facilities and refrigerated transport, restricts opportunities for frozen fruits and vegetables.
- Policy Challenges: Support policies for the fruit and vegetable industry remain limited and insufficient to effectively promote production and exports. Trade promotion activities are weak and haven’t fully leveraged market potential. Furthermore, suppliers lack effective marketing strategies for Vietnamese fruits and vegetables.
To overcome these challenges, collaboration and effort are needed from both suppliers and the government. Solutions are required to enhance product quality, develop supply chains, and further improve production capacity. With these steps, the Vietnamese fruit and vegetable export market can achieve new milestones.
The outlook for the last months of the year
Experts predict that fruit and vegetable exports will continue to increase in the remaining months of the year. Some factors driving exports include:
- Fruit and vegetable quality is improving thanks to the adoption of modern production processes that meet international quality standards, such as VietGAP and GlobalGAP.
- Global market demand is increasing, with demand for tropical fruits rising due to the preference for these fruits in European countries. Emerging markets like China, India, and ASEAN are experiencing strong growth, presenting opportunities for Vietnam.
- The Vietnamese government is implementing various policies to encourage fruit and vegetable production, providing support in terms of seeds, technical expertise, and investment capital. In addition, the government is promoting export support policies, creating favorable conditions for businesses.
- Many businesses are striving to improve product quality, adopting modern technologies and processes to ensure their products meet international standards. Moreover, businesses are investing in brand building, enhancing value, and competitiveness in the global market.
Hoang Trung, Vice Minister of Agriculture and Rural Development, stated that the total area of fruit trees in Vietnam as of July 30, 2024, reached approximately 1.29 million hectares, an increase of 20,000 hectares compared to last year.
Currently, many fruit varieties in the Mekong Delta region are entering their peak season, including durian, dragon fruit, pineapple, watermelon, mango, longan, and lychee, creating a large supply of produce for both fresh export and deep processing. Vietnamese annual fruit harvest totals 12–14 million tons. The quality and characteristics of tropical fruits from Vietnam are highly regarded and favored by many markets.
Vietnam’s annual fruit harvest reaches 12–14 million tons. The quality and characteristics of Vietnam’s tropical fruits are highly valued and favored by many markets. Looking ahead, industry experts predict that Vietnam’s fruit and vegetable exports have the potential to reach USD 10 billion by 2030.
This growth is supported by the expansion of the list of fruits allowed for formal export to China, as well as the development of processed products such as frozen and dried durian. By 2030, V ietnam’s total fruit and vegetable export value is projected to reach USD 15 billion.
Conclusion
Overall, the fruit and vegetable sector faces numerous risks, including weather patterns, seasonal fluctuations, and product quality. However, Vietnam is actively working to enhance quality and production technology to boost exports. This sector holds significant potential to support Vietnam’s exports and contribute to the nation’s economic growth.
