VIETNAM VEGETABLE AND FRUIT MARKET: OPPORTUNITIES TO FARMERS AND INDUSTRY

“Currently, Vietnam ranks fifth in Asia in terms of vegetable and fruit production. Fruit and vegetable products from Vietnam are present in over 60 countries around the world.”

Fruit and vegetable export turnover has continuously grown rapidly since 2013, from 1.073 billion USD to 2018, when it reached over 3.810 billion USD. Vietnam's fruit export markets are expanding and growing strongly. From 13 markets worth over 1 million USD in 2014, to 2018 with 14 markets worth over 20 million USD, 5 markets that grew from 10 to under 20 million USD and 36 markets that reached 10 million USD, from just 1 million USD.

In Vietnam, until August 2019, the value of fruit and vegetable export was estimated at 246 million USD, bringing the value of fruit and vegetable export in the first 8 months of 2019 by an estimated 2.53 billion USD, down by 5.8% over the same period in 2018.

The Chinese market accounted for 73% of Vietnam's total vegetable export turnover, reaching 1.75 billion USD. In addition, vegetables and fruits from Vietnam were also exported to some markets with relatively high turnover such as: EU and US. Southeast Asia market accounted for 3.7%; of which exports to South Korea increased by 14.2%, accounting for 4%.

Fruits and Vegetables export by country in 2019

The area of ​​vegetables and fruits has been increasing continuously in recent years, with an average annual growth rate of 6%. In 2018, the vegetable and fruit area reached over 1.8 million hectares, where fruit trees accounted for almost 1 million hectares. They produced nearly 10 million tons of fruit. The map shows the contribution of fruit cultivated areas in Vietnam. There are 14 kinds of fruits in the South (over 10,000 ha / each), the largest are mangoes (80,000 ha), bananas (78,000 ha), dragon fruits (53,000 ha)...

OPPORTUNITIES:

  • Possibility to enter "fastidious" markets like Europe. Europe, America, Japan, South Korea, Australia by free trade agreements such as the CPTPP.
  • From August 2019 on, fresh Vietnamese longan are allowed to be exported to Australia (beside litchi, mango, and dragon fruit) and mangoes are allowed to be exported to Chilean market (beside dragon fruit).
  • Chances to approach into EU countries in a more decisive way, such as Netherlands, England, France, Germany, Italy and Switzerland with key export being pineapples, dragon fruit, coconuts, rambutan, and mangoes.
  • Starting to export mangoes officially to the US market. This is the 6th Vietnamese fruit (beside dragon fruit, rambutan, longan, lychee and star apples) to be exported to this market.
  • Increasing export rates into the Korean market, because Korea has high demand for vegetables and fruits such as tomatoes, watermelons, cabbage, chilies, garlic… Besides, Vietnamese brown rice and rubber also have plenty of room for export to South Korea.

CHALLENGES:

  • The impact of climatic changes (droughts, water sea intrusion, ...) affects crop productivity and yield.
  • Vietnam has not yet fully met export requirements; lack of production model due to small scale, fragmentation, dispersion.
  • The overuse of chemical fertilizers and plant protection products has always been a cause of unsafe food, affecting Vietnamese fruit brands on domestic and export markets.
  • China and Korea require high quality vegetables imports with authorized sources. Vegetables in the EU are reviewed and the tightened regulations on food safety affect export progress. Currently, the EU is continuing to draft more stringent new regulations on quality standards for some imported agriculture products from Vietnam (e.g. dragon fruit).

 


Author: 
Thu Phung, Intern AgriGlobe

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