According to the Vietnam Coconut Association (VCA), since fresh coconuts were permitted for export to China, major companies have secured contracts for 30-50 containers, with one firm even signing a deal to supply 1,500 containers. The association projects fresh coconut exports to China will reach $250 million this year, accounting for 25 per cent of the industry's total export value.

congthuong.vn cited Cao Ba Dang Khoa, secretary general of the VCA, as saying, "This demonstrates the enormous potential of the Vietnamese coconut market in China. The opening of the Chinese market for fresh coconuts is a very positive signal, not only for the coconut industry but also for increasing farmers' incomes and boosting local economic development."

Nguyen Dinh Tung, CEO of Vina T&T Group, reported that through recent agricultural promotion fairs, the company has received numerous purchase inquiries for fresh coconuts from Chinese partners. The company currently holds six growing area codes and one packaging facility certification, ready to export to the billion-strong market.

Beyond fresh coconuts, China also favours processed products like coconut milk, coconut water, dried coconut, and coconut jelly. Nguyen Van Thu, chairman of GC Food, said, "China is a potential market for coconut-derived products. Our company is testing small shipments for potential customers in this market through connections made at international fairs. GCF aims to capture the Chinese market next year with coconut and aloe vera processed products. The GCF leadership expects revenue from this market to account for 15 per cent of its total revenue next year."

While the Chinese market offers numerous opportunities, Vietnamese businesses also face competition from other countries, especially Thailand, where coconut prices are lower.

"To maintain a competitive edge against countries like Thailand, the coconut industry needs to continue improving production processes, packaging, and product preservation to ensure quality and meet China's quarantine standards," Tung noted.

Coconuts are one of six crops included in the Ministry of Agriculture and Rural Development's plan for developing key industrial crops by 2030, alongside coffee, rubber, tea, cashew, and pepper. Currently, Vietnam has 15 provinces with significant coconut cultivation, covering about 200,000 hectares and producing two million tonnes.

In 2023, Vietnam exported fresh coconuts to 15 countries worldwide, with a volume of 30,000 tonnes, alongside 320,000 tonnes of processed coconut products. Notably, the export volume of fresh coconuts to China increased by over 30 per cent compared to the previous year, driven by the growing demand for fresh, clean food products, especially those with high nutritional value like coconuts, in the Chinese market.

The VCA reported that in addition to the positive news from the Chinese market, demand from other markets such as India and the Middle East is rising.

On August 19, Vietnam's Ministry of Agriculture and Rural Development and China's General Administration of Customs signed a protocol on phytosanitary requirements for fresh coconuts exported from Vietnam to China, opening up opportunities for Vietnamese fresh coconuts to access the market of 1.4 billion people.

Source: Vietnam Investment Review