Many cooperatives have successfully introduced agricultural products into demanding markets such as the United States, Japan, or Europe. However, the paradox remains that these very export-standard products see rather slow consumption in the domestic market, where consumers still prioritize cheap prices and traditional shopping habits.

Mr. Do Thanh Hiep, Director of the Hoa Le Dragon Fruit Cooperative (Lam Dong), stated that although their dragon fruits meet VietGAP and organic standards, exporting to markets like China, the EU, Japan, and South Korea is relatively smooth, accounting for over 80% of their output. However, domestic consumption of dragon fruits in Vietnam does not "run" as fast as exports.

The contrast between domestic and international markets

This reality does not merely manifest at the Hoa Le Cooperative; many other cooperatives find themselves in a similar situation. For instance, the Thanh Binh Cooperative (Dong Nai), with bananas as its primary product, sees an export ratio of up to 80-90%. The Ngu Hiep Durian Cooperative (Dong Thap) records an export proportion of up to 85% to the Chinese market and is currently shifting toward other Asian countries.

According to representatives of these cooperatives, this situation might sound strange. Logically, if a product qualifies for export to multiple markets worldwide, its domestic consumption should be more favorable. Yet, this has become a natural occurrence for many agricultural commodities.

Addressing this issue, Mr. Chi Anh, Founder and CEO of AGO Import-Export Co., Ltd. (Lam Dong), remarked that international customers usually purchase goods based on a very clear system of standards.

“They care about origin, traceability, uniformity, packaging specifications, and stability between batches. In other words, they are buying a quality system rather than simply purchasing fruits or agricultural products,” Mr. Chi Anh shared.

This is also the reason why many cooperatives can achieve stable exports if they build raw material areas meeting VietGAP, GlobalGAP, and organic standards, or satisfy the quarantine requirements of importing markets.

Reality shows that many types of Vietnamese fruits, even when priced higher than the general market average, are still accepted by international markets as long as they ensure uniformity and stable quality.

For example, although the bananas exported by the Thanh Binh Cooperative to South Korea and Japan must compete directly with similar products from other countries, the cooperative still secures long-term contracts because its goods achieve absolute uniformity: 10 bunches look exactly alike, the fruits suffer no bruising on the bunch, and they are packed according to anti-shock standards.

Similarly, at the Trinh Phu Cooperative (Can Tho), star apples command prices as high as 14-16 USD/kg at foreign supermarkets thanks to standard-compliant production processes. However, when returning to the domestic market, the equation becomes harder for the cooperatives themselves.

Unlike the export market, domestic consumers face an abundance of choices. A single type of agricultural product or fruit can simultaneously compete with traditional market goods, supermarket items, imported fruits, and online products.

Particularly, the price factor heavily sways the purchasing decisions of many Vietnamese consumers. A specific case is the Hoa Loc sand mango, once considered a premium specialty of Vietnam. However, according to members of the Hoa Loc Sand Mango Cooperative (Dong Thap), the price of Hoa Loc sand mangoes usually fluctuates between 50,000 and 70,000 VND/kg, which is about 20,000–30,000 VND/kg higher than many varieties imported from Thailand, India, or China.

Meanwhile, in the domestic market, before making a decision, buyers often question whether this price level is truly value for money.

Consequently, quite a few cooperatives have invested heavily to achieve certification but struggle with domestic sales because high production costs pull selling prices up.

Another paradox is that many export-standard products might not align well with the consumer preferences of Vietnamese people.

Mr. Do Thanh Hiep noted that exporting dragon fruits to India and China is quite favorable due to their "dragon whiskers" shape, which appeals to Buddhist-developing nations. In various other markets like the EU, Japan, and the US, this is valued as a low-sugar fruit, ideal for dieting and health improvement. This explains why exporting dragon fruits is more convenient.

Mr. Ly Minh Hung, Director of the Thanh Binh Cooperative, stated that Vietnamese people generally prefer eating fully ripe bananas with freckled skins because they are sweeter and more fragrant. In contrast, foreign consumers prefer eating green or just-ripening bananas with firm peels because they contain more nutrients beneficial to health while still ensuring food safety.

From this practical standpoint, fruit industry experts believe that Vietnamese consumers still prioritize the “delicious and cheap” factor over “certifications or production processes.”

Even commodities like Vietnamese mangoes or King oranges consumed domestically still primarily flow through traditional wet markets. Mango models achieving GlobalGAP or VietGAP criteria often face difficulties in linking consumption with supermarkets or clean food chains because certification costs are high while selling prices remain inadequate.

In contrast, imported fruits benefit from a strong brand image and the consumer psychology that foreign goods equal high quality. This explains why many Vietnamese fruits, despite meeting standards, struggle to compete right on their home turf.

The domestic market is “demanding” in its own way

Many cooperative representatives believe that the domestic market is actually harder to penetrate than export markets in terms of brand building. If exporting relies mainly on satisfying a set of technical standards, domestic sales require generating consumer emotion and shopping habits.

A product may meet the criteria to enter Japan, the US, or Europe, but if its packaging is unappealing, its brand is not strong enough, or it fails to create differentiation, domestic consumers will still easily opt for alternative products at lower prices.

This is also the root cause behind why many fruits enter harvest season only to fall into the “bumper crop, plunging prices” trap despite their high quality.

According to experts, exporting and domestic consumption demand distinct business strategies. If exporting is a story of operational standard compliance, the domestic market is a story of understanding consumers and creating demand.

“If exporting sells goods through standards, domestic consumption sells goods through trust and emotion,” Mr. Chi Anh stated. Therefore, when distributing in any market, cooperatives need to clearly define their target clients to formulate appropriate approaches.

However, cooperatives cannot focus solely on production but must invest more aggressively in branding, communication, and distribution systems. In a landscape of intensifying competition, quality is merely a necessary condition. The sufficient condition is making consumers feel that the product is “worth buying.”

This remains the riddle that many Vietnamese agricultural cooperatives and enterprises must solve if they wish to stand firm right in their home market.

Source: Vnbusiness