Fruit and vegetable sector likely to gross US$7 billion this year

Fruit and vegetable exports see double-digit growth

Statistics released by the Ministry of Agriculture and Rural Development (MARD) indicate that agro-forestry-fisheries exports in May alone edged up by 11.2% to reach US$5.06 billion compared to the same period from last year.

During the five-month period, the agro-forestry-fisheries sector raked in a total of US$24.14 billion. Of the figure, farm produce surged by 27.7% to US$13.11 billion, while fruit and vegetables also increased by 28.1% to US$2.59 billion.

Nguyen Thanh Binh, chairman of the Vietnam Fruit and Vegetable Association, predicted that Vietnamese fruit and vegetable exports are likely to enjoy favourable conditions moving forward thanks to an abundance of domestic supply sources and high demand coming from traditional and emerging markets.

Most notably, popular fruits such as durian, dragon fruit, pineapple, watermelon, mango, longan, and lychees are all anticipated to enjoy higher export growth in the Chinese market moving forward.

China increases purchases of Vietnamese durian

According to information given by the Vietnam Fruit and Vegetable Association, China spent a total of US$204 million purchasing Vietnamese durian in April, thereby representing a 6.5-fold rise higher compared to the same period from last year.

During the four-month period, the northern neighbour spent more than US$432 million on purchasing Vietnamese durian, marking an increase of 168% on-year, with the average export price hovering at US$4,207 per tonne.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, attributed the sudden increase in durian export turnover in April to the Vietnamese fruit product entering its major season.

Furthermore, durian exports to China have also enjoyed favourable conditions, including cheap logistics costs; drought in Thailand, which is the leading durian supplier; and the granting of additional growing area codes.

Industry insiders have pointed out that the durian consumption network in China has been expanding, which in turn has led to a sharp rise in the number of consumers. Moreover, the overall quality of Vietnamese durian has been further improved and is being sold at reasonable prices.

With regard to the Chinese market, the demand for processed durians in the northern neighbour tends to increase due to affordable prices and being suitable for young people's tastes.

However, experts underlined the need to deal with pesticide residues found in some cultivation areas, and strengthen quality inspection to surpass Thailand to become the leading supplier of durian to Chinese market in the future.

The MARD stated that in order to facilitate fruit and vegetable exports, it will continue to speed up negotiations, remove technical and trade barriers, and boost the official export of additional agricultural products to traditional markets such as China, the United States, the EU, Russia, Brazil, Japan, the Republic of Korea, as well as emerging markets including Halal Muslim countries in the Middle East and Africa.

Experts also underscored the importance of accelerating the early signing of the protocol in order to export frozen durian and fresh coconut to the Chinese market, while also co-ordinating efforts with embassies and trade offices in foreign countries as a means of providing market information, intensifying trade promotion activities, as well as tightening supervision over planting area codes and packaging facilities for export purposes.

Source: VOV