China remains the main fruit export market

Linking, closely building the raw material area

Mr. Phan Thanh But, Chairman of Van Van Loi Import-Export Co., Ltd., is doing business in agricultural products in Hamlet 1, Tan Thach Commune (Chau Thanh District, Ben Tre) was born in Binh Dinh. Although he started business on foreign lands, thanks to sensitivity to the market and going in the right direction, his business soon succeeded.

Agricultural products, mainly VietGAP fruits and organic fruits that Van Van Loi Import-Export Co., Ltd are trading in are diverse such as green-skinned pomelo, nam roi pomelo, Siamese coconut, rambutan, durian, banana wax, Siamese banana, old banana, tangerine orange, sugar tangerine, mango orange, longan, tu quy mango, Taiwanese mango, Hoa Loc sand mango, flat-seeded mango, white-fleshed dragon fruit, red-fleshed dragon fruit, purple-pink flesh dragon fruit, lemon, lemongrass, chili, tapioca root, white radish, ST25 rice...

Van Van Loi's products are not only favoured by domestic consumers, but also foreign markets in the US, Australia, Germany, Czech Republic, Korea and Singapore. For the domestic market, Van Van Loi Import Export Co., Ltd has built a distribution system with 100 distributors in all provinces and cities across the country.

“Since the establishment of the business, we have determined to operate under the motto for public health, so we have been supported and accompanied by the Southern Fruit Institute, DEMING Quality Productivity Institute and cooperatives specialized in producing fruit trees in the Mekong Delta”, shared Mr. Phan Thanh But.

Fruit products of Van Van Loi Import-Export Co., Ltd. are not bought and sold by businesses, but are produced by businesses in association with cooperatives specializing in fruit production such as Quoi Son Grapefruit Cooperative, Tan Phu Cooperative, Tien Long Cooperative (Ben Tre); Nam Nhi Cooperative (Hau Giang), GAP Cooperative Cu Lao Gieng (An Giang) ..., then bring the products to the market.

According to Mr. But, Van Van Loi Company always closely follows the production process of the cooperatives, strictly manages from seeding, care process, harvesting, preservation, packaging of finished products to transportation and distribution to consumers. As a result, Van Van Loi brand fruit products are highly regarded by consumers, not only domestically but also by consumers in many countries around the world.

According to Mr. But, Van Van Loi Import-Export Company Limited is linking production with an area of ​​over 50,000 hectares of cooperatives specializing in fruit production. The production workforce has over 500,000 workers in the provinces of Ben Tre, Hau Giang, An Giang and Dong Thap. The business currently has over 10,000 square meters of factory area for preliminary processing, packaging of finished products and means of transportation with a capacity of 1 million tons/year.

The strength of Van Van Loi is that in the past, it has built a large raw material area, uniform farming process from seeds to fertilizers, pesticides and cultivation techniques. In addition, Van Van Loi has a post harvest quality inspection team with many experiences, packaging process and goods transporting with high professionalism, diversified products to serve consumers.

The main customers in the international market of Van Van Loi are Lien Hoa Group, Hang Sinh Group, Lucky Star Group and HMS Comparawy Company.

“At the end of February, Van Van Loi Import Export Co., Ltd cooperated with HMS Comparawy Company (Germany), Golden Trade International Gold Trade Joint Stock Company, Tam Phat Import Export Joint Stock Company, I-Box Packaging Solution Company, Hoang Anh Company and Quoi Son Green Skin Grapefruit Cooperative, Tan Phu Cooperative, Tien Long Cooperative, Nam Nhi Cooperative, GAP Cu Lao Gieng Cooperative to establish Van Van Loi Agriculture Group.

Our group trades in fresh fruit, frozen fruit, dried fruit, fruit juice, candied fruit, food, vegetables, tubers, fruits, essential oils. Van Van Loi's store chain will be responsible for distributing goods in the domestic market, HMS Comparwy Company will distribute goods to the European market, Lien Hoa Group will distribute goods to Singapore market, Hang Sinh Group will distribute goods to the Chinese market and Lucky Star Group will distribute goods to the Australian market,” said Mr. Phan Thanh But.

Official export, a sustainable choice

According to Mr. Phan Thanh But, currently 70% of fruits produced in Vietnam are exported to China, but only meet about 5% of the demand for fruit of this market with up to 1.4 billion people. Obviously, the Chinese market for Vietnamese fruit is still very large.

Recently, China's requirements for imported products, especially agricultural products, have become increasingly strict. Agricultural products imported into China must meet regulations on food safety, animal and plant quarantine, epidemic, pathogenic microorganisms, pesticides and veterinary drugs, pollutants, production and processing processes, safety and hygiene control in transportation and storage, food safety protection systems, traceability and recall...

Faced with such strict technical barriers, many businesses have chosen the unofficial quota route to export goods to China. But for Van Van Loi Agriculture Group, the choice is to export to official roads. Because, according to Mr. But, official trade is gradually becoming the main trend of bilateral trade between Vietnam and China.

But according to Mr. But, exporting 1 container of fruit to China by the unofficial quota route is complicated, so the cost is as high as over 1 billion VND/container. Exporting goods by official quota only costs more than 300 million VND/container. With such cost difference, many Vietnamese businesses still choose the unofficial quota route to export to China, because their products is not of good quality to overcome the technical barriers set by China. Exporting goods to Singapore can be sold at a higher price, but this market does not have high consumption rate.

“If we export 10 tons of goods to Singapore every month, we will have a profit of 10 million VND per ton, so I only make 100 million VND per month. As for exporting to China, each ton is only 1 million dong, but every month we can export 1,000 tons, yielding a profit of 1 billion dong. Therefore, in addition to the US and European markets, we also take the Chinese market as the main export direction," said Mr. Phan Thanh But.

According to Mr. Dian Sheng Zhang, Chairman of Hang Sinh International Investment Group, by 2021, the total trade turnover between China and Vietnam has increased from 30 million USD in 1990 to 165.8 billion USD in 2021. The total trade turnover between China and Vietnam has increased over 5,500 times.

For Vietnam, China continues to be the largest trading partner and the largest import market. For China, Vietnam is the sixth largest trading partner after the United States, Japan, South Korea, Germany and Australia and Vietnam is China's largest trading partner in ASEAN.

“After establishing Van Van Loi Agriculture Group, in the future, Van Van Loi Import-Export Company Limited and Hang Sinh Group will jointly establish Sinh Loi Group. In addition to farming, import-export, logistics, consulting activities, Sinh Loi Group also organizes "zero-dong" garden tourism services for foreign customers.

We will take our customers on a free tour of the fruit growing areas, so that they can experience our safe production process. From there, customers will easily sign our purchase contract when they see that the product is really safe.

In the future, Sinh Loi Group will expand the raw material area in Binh Dinh to take advantage of Quy Nhon Port to export goods, which is also the land where I was born, then expand into Khanh Hoa and Da Nang”, Mr. Phan Thanh But shared.