China is promoting the cultivation of dragon fruit and durian and selling them at low prices, causing Vietnam's main export fruits to face fierce competition.

Citing data from the General Department of Customs, the Import-Export Department (Ministry of Industry and Trade) said that Vietnam's fruit and vegetable export turnover continuously recorded new records. In September, fruit and vegetable export turnover reached 917.25 million USD, up 37.6% over the same period last year.

In the first 9 months, Vietnam's fruit and vegetable export turnover reached 5.64 billion USD, up 33.9% over the same period last year. "The above results were largely due to the contribution of durian exports to the Chinese market and key fruits and vegetables such as bananas, jackfruit, mangoes, watermelons, lemons, passion fruits, nuts, etc.," the Import-Export Department assessed.

However, the management agency assessed that Vietnam's fruits are facing quite a lot of competition in the export market. Typically, in the Chinese market, this billion-people country is rapidly developing the acreage of many key export fruits of Vietnam such as dragon fruit and durian.

"After 10 years, China's dragon fruit growing area has surpassed Vietnam's. For durian, China is testing 2,700 hectares on Hainan Island and seeking to be self-sufficient in supply from places with favorable climates," said the Import-Export Department.

According to statistics, the dragon fruit growing area has grown rapidly since 2011. In 2021, the country's dragon fruit growing area exceeded 67,000 hectares, more than 19 times after only 10 years with an output of 1.6 million tons.

The massive growth of Chinese dragon fruit has also led to a significant decrease in import volume. In the first half of this year, the export turnover of dragon fruit to China only reached 203 million USD (accounting for 68% of the total turnover), down 26.3% compared to the same period in 2023.

Currently, Chinese dragon fruit is mainly distributed in Guangxi, Guangdong, Guizhou, Yunnan, Hainan and other regions. Guangxi and Guangdong are the two main growing areas, accounting for about 70% of the area.

Of which, Nanning (Guangxi) is a locality with an annual output of more than 430,000 tons, accounting for about 1/5 of the total dragon fruit growing area of ​​this country.

A survey by Produce Report in August 2023 showed that the retail price of Chinese red-fleshed dragon fruit during the peak harvest season (July-August) was around 7 yuan/kg (over 24,500 VND/kg), while Vietnamese white-fleshed dragon fruit was sold for 9 yuan/kg (over 31,500 VND/kg). At the end of the year, the price of Chinese dragon fruit was around 12-16 yuan/kg (42,000-56,000 VND/kg) higher.

The Import-Export Department believes that the fruit and vegetable industry needs to create and bring the true values ​​of Vietnamese fruits to Chinese consumers. Product quality, unique flavors and food safety are the core values ​​that need to be focused on developing and maintaining. The management agency forecasts that Vietnam's fruit and vegetable exports will continue to grow in the last months of the year thanks to seasonal factors. In addition, our country's fruits and vegetables are increasingly asserting their position in markets such as the US, China, Korea, etc.

In particular, Chinese consumers increasingly favor Vietnamese durian, banana, lychee, longan, jackfruit, mango, and watermelon, thanks to the quality and unique flavors of tropical fruits.

Source: News & Market, Produce Report