Diversification of the Vietnamese dragon fruit export market is necessary

“Renovating” Chinese market and scaling up to new markets

According to Mr. Bien Tan Tai, Deputy Director of the Binh Thuan Department of Industry and Trade, the unit will closely watch and share information with northern border provinces to monitor the situation.

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From then, the unit would work with relevant parties to inform and suggest companies, cooperatives, and other agencies on the export situation in the Northern border areas, as well as instruct and help dragon fruit exporters in avoiding the border gate blockade.

To ensure long-term exports of dragon fruit to China, the department will mobilize enterprises to focus on and pay attention to export exchanges by international standards via foreign trade exchange contracts, contact clients to negotiate, and gradually transfer to official exports of dragon fruit by sea, in compliance with the following regulations: labels; traceability, the origin of goods; an indication of planting area; testing and quarantine; packing; quality, variety... The works aim to supply the Chinese market's eastern provinces and cities such as Shanghai, Tianjin, Beijing, Shenzhen, Zhejiang, and Hubei... as well as the country's deep-lying regions.

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Apart from the Chinese market, the Binh Thuan Department of Industry and Trade will implement municipal plans to develop and expand domestic and international markets for Binh Thuan dragon fruit between 2021 and 2025.

As a result, the province will boost dragon fruit exports to additional global markets while maintaining access to established export markets. Enhancing trade promotion and assisting businesses in entering and expanding into new and potential markets for their products. By 2025, dragon fruit export revenue is estimated to reach USD 50-69 million per year through official channels, steadily elevating domestic consumption proportion to 22-25 percent.

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To accomplish this goal, Binh Thuan enhances its assistance for firms engaged in international trade promotion operations. It conducted surveys and trade missions to learn about and establish new and possible markets for dragon fruit exports to mitigate risks and lessen reliance on the Chinese market.

Concentrating on India, Pakistan, Bangladesh, the Middle East, and nations that have signed free trade agreements with Vietnam.

Additionally, the province encourages Dragon Fruit Association members and exporters to participate in prestigious regional and worldwide fruit conferences, seminars, and fairs to promote their goods, seek clients, and increase export markets.

Simultaneously, the province continues to assist dragon fruit exporters in participating directly in international distribution networks already established in Vietnam, such as Lotte (Korea), Aeon (Japan), and Big C (Thailand), through which goods may be consumed and markets expanded.

For the domestic market, Binh Thuan will effectively conduct cooperation and association programs with domestic provinces and cities, in addition to assisting enterprises in promoting trade promotion activities.

Additionally, the province will encourage the production and trading of clean, organic, and VietGAP, GlobalGAP dragon fruits to assure the quality of fruits supplied to local and international markets.

For sustainable development, we are connecting and cooperating in chains in dragon fruit production and consumption. Promoting and assisting industrial processing to increase the value of Binh Thuan dragon fruit.

To increase the efficiency of trade promotion activities and the competitiveness of Binh Thuan dragon fruit in the long term, the Binh Thuan Department of Industry and Trade recommends that the central ministries and departments continue to provide information on market situations, prices, legal policies, technical barriers to trade, and recommendations at various stages of cultivation, handling, storage, transportation, and export to ensure product freshness and quality.

Urgently expanding to Japanese and Indian markets

In October 2021, Japan officially recognized Binh Thuan dragon fruit as a Protected Geographical Indication (PGI), making it the second Vietnamese product to get this designation, following the Luc Ngan lychee.

According to Tan, the recognition demonstrates the dragon fruit's prominence in the Japanese market. Additionally, there will be several opportunities to promote and develop the market for Binh Thuan dragon fruit exports.

For India, the market of 1.4 billion populace is in huge demand for fruit consumption.  Dragon fruit is listed in the top ten most consumed fruits, with a 27 percent yearly growth rate.

Mr. Bien Tan Tai, Deputy Director of the Binh Thuan Department of Industry and Trade, stated that in 2018, the unit collaborated with the Asia-Africa Market Department (Ministry of Industry and Trade), the Vietnamese Embassy, and the Vietnamese Trade Office in India to organize a delegation to India to attend a dragon fruit consumption promotion seminar in New Delhi. The delegation was there to promote and introduce Binh Thuan dragon fruit. Additionally, facilitating exchange between Binh Thuan and Indian firms to increase dragon fruit consumption in this market.

The result was favorable; whereas exports of Binh Thuan dragon fruit to India were just USD 316,400 in 2017, they grew to USD 452,100 in 2018 and USD 842,800 in 2019. (an average increase of 64 percent per year).

In 2020, to assist businesses in consolidating and expanding their markets in India and Pakistan, the Binh Thuan Department of Industry and Trade collaborated with the Trade Promotion Department to form a working group to conduct market research and encourage dragon fruit consumption. However, due to the Covid-19 outbreak, the field survey was unfeasible and a virtual connection conference was held.

"Japan and India both represent enormous potential markets. In the next years, the Binh Thuan Department of Industry and Trade will prioritize developing and expanding these two markets in addition to others to increase dragon fruit consumption," Mr. Tai revealed.

He elaborated that the unit will coordinate with the Ministry of Industry and Trade, the Vietnam Trade Office in Japan, and the Vietnam Trade Office in India to alleviate difficulties for enterprises by timely providing information on market conditions as well as new import and export guidelines and policies from Japan and India to promote long-term consumption of Binh Thuan dragon fruit, thereby contributing to the resolution of output difficulties and reducing reliance on the Chinese market.

Mr. Bien Tan Tai, Deputy Director of the Binh Thuan Department of Industry and Trade, emphasized that firms must actively participate in local and international commerce promotion programs in the coming time to link trade, promote goods, seek clients, and build distribution channels.

Simultaneously, concentrating on domestic customers, responding to consumer demands, and enhancing product quality as consumers are having increasing demands on health and food safety. Simultaneously, he advised businesses to produce papers presenting their unit, items that must support consumption, production, and supply capacity for partners in the form of brochures, video clips, among others.