Barriers to overcome when bringing Bac Giang lychees to the US

On March 29, an online conference to connect trade, promote consumption of lychee and key agricultural products, featuring Bac Giang province entering the US market in 2022 took place in Vietnam and the US.

Striving for 1,600 tons of lychee to go to the US and EU

"The province's lychee production in 2022 is expected to be over 160,000 tons (early lychee production is about 50,000 tons; main crop is 110,000 tons). In which: lychee is expected to be exported to the US, Australia, the EU markets with 18 planting area codes (IRADS code by the US), growing area is 218 hectares, output is 1,600 tons", said Mr. Phan The Tuan, Vice Chairman of Bac Giang Provincial People's Committee.

According to Mr. Tuan, this year, the weather is favorable, lychees in the province grow well, pests and diseases are controlled, Bac Giang lychee is forecasted to have delicious taste and outstanding quality: "Big fruit, red skin, small seeds, thick pulp" continue to be the unique characteristics, marking the famous lychee brand, conquering consumers in fastidious markets in the world.

Early harvest of lychee is expected to start from May 15; The main lychee harvest is from June 10 to July 30, 2022. Regarding the export market, Mr. Tuan said Bac Giang has stepped up support, encouragement and promotion of exports to markets it has cooperated with over the years: the US, EU, Australia, Japan, Korea, China, Malaysia, Thailand...; and continue to seek, expand new potential consumption markets.

Bac Giang province encourages businesses to open lychee stalls on e-commerce platforms such as: Amazon.com, Alibaba.com, Sendo.vn, Postmart.vn, Voso.vn...; promote lychee consumption activities on social networks, fanpages on Facebook, Zalo. In which, Bac Giang identified the US as a potential market with great purchasing power.

Clearly identify barriers and challenges

Assessing the US market, Mr. Phan The Tuan said that the province identified this as a potential market, with great purchasing power but also fastidious, requiring high quality with strict requirements on quarantine and food safety.

Sharing Mr. Tuan's sentiment, from the bridgehead of Washington DC, Deputy Ambassador of Vietnam to the US Hoang Thi Thanh Nga said that in order to export Bac Giang's agricultural products, including lychees, to the US market, it is necessary to have a closer study on the production and transportation process to ensure safety and best quality before reaching the consumers.

According to Ms. Nga, this is the biggest problem currently because of difficulties in transportation and reliance on air transport. The representative of the Vietnamese Embassy in the US said that the workhop on March 29 will be an opportunity for manufacturing, processing and transport businesses to exchange, helping Bac Giang province and farmers discover the best export solutions for the province's agricultural products to the US market.

Regarding export activities, Ms. Do Linh Nham, Deputy Director of Global Food Import-Export Joint Stock Company (Luc Ngan), said that to bring lychees to the US market, the business introduced a 6-step process.

However, lychee export to the US market faces difficulties such as: High air freight cost, long sea shipping time (30-35 days) causing pressure for preservation technology...

From the perspective of an export business, Ms. Ngo Thi Thu Hong, General Director of Ameii Vietnam Joint Stock Company, said that Bac Giang's lychee exports are really promising. However, exporting to the US still faces some barriers and difficulties.

For example, it takes 2-3 days to transport to a facility in the South that is eligible for irradiation and then packaged and exported to the US market. This makes the cost high and also prolongs the storage time.

"Additionally, customs clearance when exporting to the US also takes very long. This is due to the complicated development of the Covid-19 pandemic, along with many goods causing container congestion at the port. This year, Ameii also plans to bring lychee to the US market and will certainly accomplish, but it is important to promote so that American consumers can recognize Vietnamese lychees," said Ms. Ngo Thi Thu Hong.

As an experienced import-export business in the US, from the Houston bridge point (Texas), Ms. Jolie Nguyen, a representative of Luong Nguyen Service Company, said that regarding fruit preservation, each business needs to build its own concentrated pre-processing area and lychees need to be refrigerated from the beginning in order to keep the product's value and quality during transportation.

"In order to enter the US market, products need to have an FDA identifier; compliance with regulations on labeling, packaging, additives and sample testing criteria; compliance with 3rd party testing and certification requirements (SGS…). Therefore, businesses must fully research, especially the market, to properly assess the potential of their products in the market", the businesswoman shared.

Optimistic about Bac Giang lychee's ability to reach the US market

Ha Kim Ngoc, former Ambassador of Vietnam to the US, emphasized that leaders of the two countries had made a strong commitment and clearly demonstrated their determination to deepen the diplomatic relationship between the two countries. If it were not for the cooperation between the two countries, it would not be possible for  for localities, businesses and people to concretize this determination.

According to him, this conference is a good starting point, opening up opportunities to bring lychees to the US market. However, to do so, the province, businesses and farmers need to race against time because the harvest is close.

Mr. Ha Kim Ngoc noted that in May there will be an important event in ASEAN's relationship with the US. Therefore, trade agencies and businesses in the US coordinated with Bac Giang Provincial People's Committee to organize a lychee festival in the US on this occasion. Thereby creating an impression, spreading the image, taste as well as the Bac Giang lychee brand to the American people and the Vietnamese community here.

Meanwhile, Deputy US Ambassador to Vietnam, Ms. Melissa Bishop, said that the conference to promote consumption of lychee and key agricultural products of Bac Giang province is a great opportunity for US importers to understand more about lychees and build stronger business relationships.

"I hope the US and Vietnam will strengthen their cooperation further to expand bilateral trade and increase market access for fruits in the future," said Deputy Ambassador Melissa Bishop.

In 2021, the bilateral agricultural trade between Vietnam and the US reached 9 billion USD for the first time and Vietnam's agricultural exports to the US also reached a record high of nearly 5.2 billion USD.

One of the great aspects of agricultural trade is that it gives consumers around the world the opportunity to taste delicious foods that are not available in their home countries. Consumers in the US can enjoy tropical fruits grown in Vietnam such as lychee, mango, dragon fruit, rambutan, apple, longan.

Meanwhile, the US can also provide apples, grapes, cherries, blueberries.. so that Vietnamese people can enjoy fruits that are healthy and not easily grown in Vietnam.

Chairman of the Bac Giang Provincial People's Committee Le Anh Duong emphasized that opinions expressed at the conference were very profound, open and all expressed their determination and aspiration to bring lychees to the US market.

"Through the conference, the province as well as businesses and farmers can clearly see the advantages as well as difficulties, challenges bringing lychees to the people, thereby they can find solutions to overcome them." Mr. Le Anh Duong shared.

According to Mr. Duong, this conference opens up new opportunities for lychee as well as agricultural products of the province to the US market. Although there are still many barriers, but with the determination of the parties, businesses and the support from the two countries' government, Bac Giang province believes that it will overcome these barriers and bring the lychees to the US market, creating a premise to bring other key products of the province to this market.