Durian and dragon fruit are 'moving' in opposite directions

According to Mr. Dang Phuc Nguyen, Secretary General of the Vietnam Fruit & Vegetables Association (Vinafruit), as of the first half of August 2023, Vietnam's durian exports are estimated to reach 1.2 billion USD, nearly three times the total export value for the entire year 2022. Therefore, this is the first time durian exports have exceeded 1 billion USD in a year.

In the coming months, Vietnam still has a durian harvesting region in the Central Highlands. Moreover, this is the only region in the world with fresh durians available for market supply in the final months of the year, as Thailand, the Philippines, and Malaysia are all preparing to conclude their harvest seasons. Meanwhile, the demand for imports in China remains high.

At the same time, this fortunate timing aligns with a robust demand for imported durians in China. As the world's largest consumer of durians, China's appetite for the "king of fruits" remains insatiable. This demand has set the stage for a mutually beneficial trade relationship between Vietnam and China, where Vietnam's Central Highlands durians can fulfill the cravings of Chinese consumers during a period when supplies from other nations are winding down.

In essence, the Central Highlands region of Vietnam holds the dual role of preserving the allure of the durian as a year-end delicacy while also serving as a reliable supplier to meet the ever-growing demand from China. As the last leaves of autumn fall and winter's chill begins to set in, the vibrant flavors of Vietnam's durians will continue to thrive, providing a succulent and satisfying treat for both local and international palates.

The issuance of region codes for durian cultivation areas is also being implemented by provinces with significant durian cultivation areas. In Tien Giang (the province with the largest durian cultivation area in Vietnam), Mr. Nguyen Van Man, Director of the Department of Agriculture and Rural Development, stated that the durian area in the province has now reached nearly 20,000 hectares. Among them, over 12,000 hectares are for harvesting, with an annual yield of 355,000 tons. The Department of Agriculture and Rural Development in Tien Giang is actively establishing, verifying the reality, completing documentation, issuing region codes, and ensuring the maintenance of technical conditions for the issued region codes for cultivation areas and packaging facilities for exported agricultural products. By the end of 2023, the goal is to have 70% of the durian area with fruit on the trees in the province issued with cultivation region codes.

Considering these factors, Mr. Nguyen predicted that Vietnam's durian exports in the final months of the year could reach 400 - 500 million USD, and the total for the entire year could reach 1.7 to 1.8 billion USD.

In contrast to durian, dragon fruit exports - the type of fruit that used to rank first in Vietnam's export value - are currently on a declining trend. According to Mr. Dang Phuc Nguyen, the forecast for the entire year 2023 is a 10% decrease in dragon fruit exports compared to 2022, reaching around 575 million USD. Therefore, dragon fruit exports have been continuously declining since 2019. Specifically, in 2019, Vietnam's dragon fruit exports reached over 1.2 billion USD and became the first fruit type to exceed the 1 billion USD export milestone. However, afterward, dragon fruit exports consistently declined, with only 633 million USD in 2022, which is approximately half the value of three years prior.

One of the significant reasons behind the continuous decline in Vietnam's dragon fruit exports is China's robust production of this fruit type. Information from a Chinese newspaper indicates that the cultivated area for dragon fruit in China has reached 67,000 hectares, with a production of 1.7 million tons. This surpasses Vietnam, making China the world's largest dragon fruit producer (Vietnam's dragon fruit area is currently about 64,000 hectares with a production of 1.4 million tons).

Vietnam's dragon fruit exports mainly depend on the Chinese market. Consequently, as China rises to become the world's largest dragon fruit producer, Vietnam's dragon fruit exports have sharply declined, and dragon fruit had to yield its position as the number one fruit in the export structure to durian.

According to the General Department of Customs, by mid-August, Vietnam's fruit and vegetable exports in 2023 had reached 3.26 billion USD, nearly equal to the total export value for the entire year 2022 (3.36 billion USD). Thus, by the end of August, the fruit and vegetable export value had surpassed the figure achieved in the previous year.