Approaching the target of 1 billion dollars, coconut industry soon enter group of key export sectors

The coconut tree is one of the popular plants across the country with nearly 200,000 ha of cultivation, creating a source of income for around 390,000 farming households, creating export value of coconut fruit and coconut products.

Sharing at the Second National Congress of Delegates of Vietnam Coconut Association, term 2023-2028 last week in Ho Chi Minh City, Mr. Cao Ba Dang Khoa, Acting General Secretary of Vietnam Coconut Association shared that during 1990-1992, Vietnamese coconut had been exported in the form of mostly processed products for food, coconut farmers had to work on their own due to lack of branding and detail production criteria.

Following the first Ben Tre coconut festival in January 2009, the Vietnam Coconut Association was founded when the coconut industry was young and fresh with simple processing technology, small and fragmented, coconut value was not fully exploited and was unfamiliar to ministries and departments for its economic value, coconut export turnover was only over 100,000 USD at that time.

By 2021, the Prime Minister assigned the Ministry of Agriculture and Rural Development to bring the coconut tree into key industrial plants to plan for development schemes.

In 2022, the Vietnam Coconut Association had 112 members including 46 enterprises, 2 organizations, and coconut farmers. Export turnovers of coconut and related products including candies, cosmetics, handicrafts fine arts, and woods among others with coconut components were 940 million USD.

In the very first months of 2023, the coconut industry experienced a shrunk due to economic difficulties. However, it welcomed good news in the third and fourth quarter of the year as the coconut was officially exported to th US and some European markers. China is also considering importing this Vietnamese fruit into this market.

Currently, the entire country has 90 coconut-related enterprises, with 42 businesses producing coconut products nationwide. Notably, the coconut industry community has boldly invested in technology and organic material cultivation areas, and many coconut farms covering hundreds of hectares have been established in Tay Ninh, Khanh Hoa, Binh Thuan, Binh Dinh, and other provinces, leading the trend and contributing to a superior export turnover in the near future.

In provinces like Quang Nam, Quang Ngai, Binh Phuoc, and Tay Ninh, many companies have emerged in coconut cultivation, production, and the export of coconut-related products.

At present, there are nearly 15 specialized coconut farms with areas exceeding 100 hectares each in provinces such as Long An, Hau Giang, Tay Ninh, Binh Thuan, Khanh Hoa, and Binh Dinh.

"From a small association, the Vietnam Coconut Association has contributed to building the national brand in the food industry, allowing the Vietnamese coconut industry to have a stronger presence on the world market, thereby promoting the development of many other coconut-based industries," said Mr. Cao Nguyen Dang Khoa.

The congress also elected the Executive Committee for the second term (2023 - 2028) consisting of 14 members. Ms. Nguyen Thi Kim Thanh was re-elected as the Chairwoman of the Vietnam Coconut Association.

Accepting her role, Ms. Nguyen Thi Kim Thanh, Chairwoman of the Vietnam Coconut Association, stated that the Vietnamese coconut industry has seen development in the past ten months and has prepared for new markets. Businesses have prepared fresh coconuts for export to the United States, and all coconut-processed products have access to various large markets. Despite being affected by global conflicts, coconut products continue to grow in the United States and some other countries.

According to Ms. Thanh, ten years ago, the coconut industry recognized the global consumer trend shifting towards organic and clean consumption. To promote the sustainable development of the coconut industry, it was essential to establish stable raw material areas. As a result, the Vietnam Coconut Association presented a development strategy for the coconut industry to the government. In 2021, the government assigned the Ministry of Agriculture and Rural Development to formulate a plan for developing key industrial crops, including coconuts.

To implement this plan, businesses and farmers are actively expanding coconut cultivation areas, selecting suitable coconut varieties for high productivity and export quality. "The biggest goal of the Vietnam Coconut Association is to turn the coconut industry into a leading production and export sector, maximizing efficiency and increasing the economic value of coconut products. It is projected that the export turnover from 2024 will reach 1 billion USD per year."

The association will continue to plan for the development of standardized coconut growing areas and aims to create a nationwide coconut map as a reference for investors and businesses, supporting the coconut industry's growth. In particular, they are focused on establishing organic coconut raw material areas.

The Chairwoman of the Vietnam Coconut Association emphasized that the association would work alongside coconut farmers in cultivation, harvesting, and processing to help stabilize coconut prices. Simultaneously, they will support coconut industry businesses in enhancing their competitive capabilities, developing markets, and establishing their product brands both domestically and internationally.