In the first 7 months of 2024 compared to the same period in 2023, Vietnam's fruit and vegetable exports reached over 3.8 billion USD, an increase of 23.4%; in contrast, fruit imports reached over 1.2 billion USD, an increase of 12.7%. Thus, with this result, after 7 months, Vietnam's fruit and vegetable industry had a trade surplus of about 2.6 billion USD...

Vietnam and China have agreed to soon complete all procedures to sign the Protocol on fresh coconut quarantine requirements in the near future, which will open up export prospects for Vietnamese coconuts.

According to the Vietnam Fruit and Vegetable Association, since the beginning of 2024, the strong increase in market demand has helped increase the export turnover of fruits and vegetables. In July 2024, fruit and vegetable exports brought in 477 million USD, an increase of 18% over the same period last year. In the first 7 months of 2024, the export turnover of fruits and vegetables reached over 3.8 billion USD, an increase of 23.4% over the same period last year.

FRUIT IMPORTS INCREASED SHARPLY

According to the Vietnam Fruit and Vegetable Association, the sharp increase in exports shows that the quality of Vietnamese fruits and vegetables is getting better and better, meeting the requirements of the export market."

However, on the contrary, fruit imports also increased sharply. According to the Vietnam Fruit and Vegetable Association, in July 2024, Vietnam spent about 200 million USD to import fruit. In the first 7 months of 2024, our country spent over 1.2 billion USD (more than 30,000 billion VND) to import fruit, an increase of 12.7% over the same period last year.

"In the first 7 months of 2024 compared to the same period last year, Vietnam imported fruits from the main sources, including: China 397 million USD, up 27%; the United States about 206 million USD, up 14%; Australia about 57 million USD, up 76.6%. Next are imports from sources such as Korea, Japan, and Thailand".Vietnam Fruit and Vegetable Association.

The fruit products that Vietnam imported a lot in the first 7 months of 2024 were all temperate fruits, including apples, pears, pomegranates, grapes, plums and vegetables.

Regarding the reason for the increasing trend in fruit and vegetable imports, the Vietnam Fruit and Vegetable Association said that it only imports products that the Vietnamese market does not have, or has very little of, to diversify to serve the needs of domestic consumers. Although fruit imports increased sharply, in the first 7 months of 2024, the fruit and vegetable industry still had a trade surplus of over 2.5 billion USD.

FRUIT EXPORT: 80% TO NORTHEAST ASIA MARKET

Analyzing more closely the fruit export in 7 months, Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, said that it is noteworthy that in the export structure, Northeast Asian countries such as China, Korea, Japan, ... account for 80% of the turnover; the remaining 20% ​​is Europe, the United States, Australia, the Middle East.

The two Northeast Asian countries, China and Korea, have the highest export turnover. Of which, China is the leading market, accounting for 64% of the total export turnover with 2.1 billion USD, an increase of 22% over the same period last year.

In China, Vietnam is exporting 14 fruit and vegetable products including: dragon fruit, longan, lychee, rambutan, mango, watermelon, jackfruit, banana, mangosteen, durian, sweet potato, coconut, in addition to temporarily exporting passion fruit and chili.

Currently, both China and South Korea are negotiating to sign a Protocol on the export of citrus fruits (grapefruit), medicinal herbs and frozen durian.

"When signing the Regional Comprehensive Economic Partnership (RCEP) free trade agreement, because import taxes have been reduced, countries will erect technical barriers. This is a barrier, requiring fruit exporting enterprises to continuously update the export regulations of Northeast Asian countries to promptly respond."Mr. Dang Phuc Nguyen, General Secretary of Vietnam Fruit and Vegetable Association.

The second largest export market for Vietnamese fruits and vegetables is South Korea, with fruit and vegetable exports to this market reaching 164 million USD, up 57.9% over the same period in 2023. South Korea is the import market for dragon fruit (white, red), mango, and grapefruit from Vietnam.

The United States is the third largest market for Vietnamese fruit and vegetable exports, with export value to this market reaching more than 157 million USD, up 32.4% over the same period last year. The United States is a potential market for fruit and vegetable exporting countries, including Vietnam.

With Japan, Vietnam has exported dragon fruit, mango, longan, and is negotiating to export grapefruit.

"In the future, Northeast Asia will be a strategic market for Vietnamese fruits and vegetables, with high GDP and willingness to spend on fruits and vegetables," Mr. Nguyen said, adding that China is a populous market with high demand for fruits and vegetables, and has been a traditional customer of many types of Vietnamese fruits. Meanwhile, Japan and South Korea are populous countries with high incomes and great demand for quality agricultural products and fruits.

China, Japan, and South Korea are also members of the Regional Comprehensive Economic Partnership (RCEP). This is a free trade agreement between ASEAN countries and China, South Korea, Japan, Australia, and New Zealand, effective from January 1, 2022, stipulating the elimination of tariffs on about 90% of product groups within 20 years.

“When exporting to these markets, Vietnamese enterprises not only benefit from tariffs but also reduce transportation and logistics costs and maintain the quality of agricultural products compared to when exporting to distant markets such as the EU and the United States. However, when signing a free trade agreement, because import taxes have been reduced, countries will erect technical barriers. This is a barrier, requiring Vietnam to continuously update their export regulations to promptly respond,” Mr. Nguyen analyzed.

EXPECTING NEW FRUITS

In the first 7 months of 2024, durian is still the fruit industry's highest export value, with a turnover of about 1.7 billion USD. However, Mr. Nguyen said that due to the durian crop being out of season, the export value of fruits and vegetables in July was also affected, lower than in previous months. In 2023, Vietnam's durian exports reached their highest value in September and October, with a value of nearly 500 million USD per month. The Central Highlands is the largest durian growing region in the country, and when this region enters the peak harvest season, it will boost the export value of the coming months to increase sharply.

Mr. Phung Duc Tien, Deputy Minister of Agriculture and Rural Development, said that Vietnam has officially exported 11 types of fruits and vegetables to the Chinese market, including: watermelon, mangosteen, durian, fresh banana, sweet potato, dragon fruit, rambutan, mango, lychee, longan, jackfruit. The two sides have agreed to soon complete all procedures to sign the Protocol on fresh coconut quarantine requirements in the near future, which will open up export prospects for Vietnamese coconuts.

Mr. Tran Van Duc - Chairman of the Board of Directors of Ben Tre Coconut Investment Joint Stock Company said that China is an extremely potential market because it uses up to 2.6 billion fresh coconuts and 1.5 billion coconuts for processing each year. With the advantage of geographical distance, short transportation time and low cost, the product will be competitive with other countries. If Vietnamese fresh coconuts can open up to this market, coconut exports will have a breakthrough.

Regarding fresh coconut products, the Vietnam Fruit and Vegetable Association assessed that the demand for importing this product in the Chinese market is very large and tends to grow steadily, each year higher than the previous year. Meanwhile, China's coconut output only meets about 10% of domestic consumption demand, the rest is imported. Therefore, if this product is officially exported to the Chinese market, it will help Vietnam's fruit and vegetable exports continue to grow positively.

"If the Export Protocol is signed, businesses can exploit their advantages, then our coconut industry can earn an additional 300 million USD from the Chinese market. In a few years, the Vietnamese coconut industry can catch up with Thailand to bring in a turnover of billions of USD," Mr. Nguyen predicted.

Source: VnEconomy