After months of plummeting to just a few thousand VND per fruit, fresh coconut prices have now doubled thanks to improved consumption and export demand.

In the farming areas, fresh coconuts in the Vinh Long region (formerly part of Ben Tre) are being purchased at 80,000–100,000 VND per dozen (12 fruits), double the price at the beginning of the year.

Mr. Dinh Muoi, a farmer in Vinh Long, shared that his family's orchard of about 50 coconut trees currently provides a stable income. In the coming time, he intends to expand the area and switch to cultivation according to GlobalGAP standards, using varieties specifically for export to enhance value.

Many other coconut grove owners also reported that their incomes have stabilized as coconut prices increased rapidly.

The upward trend in the orchards quickly spread to the retail market. In Ho Chi Minh City, the price of coconuts increased by an additional 3,000–5,000 VND per fruit. Large green Siamese coconuts range from 15,000–16,000 VND, and pineapple coconuts are about 20,000 VND per fruit. Diamond-cut coconuts are at 15,000 VND for those under 300 grams, approximately 18,000 VND for the 350-gram size, and from 20,000 VND for those over 400 grams.

According to retailers, the short-term price increase is mainly due to entering the peak heatwave, with demand for coconut water surging, while dry weather has reduced yields, making supply insufficient. Additionally, transportation costs have risen along with fuel prices, contributing to the upward push in retail prices and exerting pressure on processing facilities to secure raw materials.

However, from an industry perspective, the upward trend is not only due to seasonal factors. Mr. Cao Ba Dang Khoa, General Secretary of the Vietnam Coconut Association, noted that the current price hike primarily occurs in the fresh coconut segment, while raw materials (dry coconuts) are increasing slowly and are purely recovery-based, rooted in internal foundations. As Vietnamese coconuts have participated deeply in the global supply chain, demand comes from many international markets, not just domestic consumption.

According to him, the market improvement also stems from the industry's restructuring process. Previously, production lacked control, lacked recording systems, and had not clearly classified coconut varieties despite having about 16 different types. The practice of using immature dry coconuts for consumption under the guise of fresh coconuts once damaged the reputation with international customers. Recently, many growing areas have shifted to centralized production models, using uniform varieties and transparently categorizing types such as green Siamese, fire Siamese, and pineapple coconuts, thereby step-by-step restoring market confidence.

Developments in raw material areas show a clear differentiation between segments. Vinh Long is currently the locality with the largest coconut cultivation area in the country, accounting for approximately 60% of the nation with nearly 123,000 hectares. In the first quarter, the price of dry coconuts fell deeply, at times dropping to 40,000–60,000 VND per dozen, a decrease of two-thirds compared to the same period. However, since mid-April, prices have begun to recover as supply decreased seasonally. In contrast, fresh coconuts rose sharply to 90,000–130,000 VND per dozen due to high consumption demand and purchasing activities for export.

Export activities continue to be an important driver. In the first three months, enterprises in Vinh Long exported more than 16 million dry coconuts, primarily to Thailand and China. For fresh coconuts, the market has expanded to the US, Japan, South Korea, and Australia. Customs figures show that fresh coconut export turnover in the first quarter reached 65 million USD, a 26% increase year-on-year, with fresh coconut exports to both China and the EU seeing double-digit growth.

Currently, over 60% of dry coconut output has been put into deep processing, creating value-added products such as coconut milk, coconut oil, coconut milk powder, and activated carbon, helping to enhance economic efficiency and reduce dependence on raw exports.

Nevertheless, according to experts, the coconut industry still faces many challenges. Volatile prices make it difficult for farmers and enterprises to build long-term plans. Linkages between enterprises and cooperatives remain loose, and sustainable raw material areas have not yet been formed. Competition for raw material purchasing is increasing, especially in the high-value organic coconut segment, which requires strict standards.

Source: VnExpress