Fruit and vegetable exports to China aim for a record milestone of USD 5 billion

Reporters from Vietnam Agriculture Newspaper had an interview with Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruits and Vegetables Association (Vinafruit), about the opportunity to reach a new record in exporting Vietnamese fruits and vegetables to the most important market of China.

Sir, according to information from the General Department of Vietnam Customs, in August 2024, fruit and vegetable exports to China reached nearly USD 600 million. Is this a record number of exports in 1 month to this market?

Mr. Dang Phuc Nguyen: Right, this is the highest number achieved in 1 month for fruit and vegetable exports to China. Exports to China reaching such a high turnover in August are thanks to exports of durian, a product accounting for about 2/3 of fruit and vegetable export turnover to this market.

August and September are the main harvest times for durian in the Central Highlands, while the Central Highlands currently account for about half of the country's durian area. Therefore, at this time, Vietnam's durian output is very large. On the contrary, in August and September, durian output in countries such as Thailand and Malaysia is very little. Therefore, despite abundant output, Vietnamese durian exported to China still maintains good prices, helping fruit and vegetable exports to this market reach a record level in August.

Besides durian, what fruit types are being exported well to the Chinese market this year, sir?

Mr. Dang Phuc Nguyen: This year's banana exports to the Chinese market also grew very well. Due to both objective and subjective reasons, Vietnamese bananas surpassed Philippine bananas to occupy the largest market share in China's banana imports. The objective reason is that the Philippines' banana output has decreased significantly because of storms and Panama wilt disease. Besides, the Philippines' banana industry is also facing difficulties in logistics and transportation.

The subjective reason is that Vietnamese bananas are increasingly improved in terms of design and quality, meeting consumer tastes in China. Besides, having banana varieties resistant to Panama wilt disease is also helping Vietnam's banana industry have stability in output and quality. Logistics costs are also a competitive advantage of Vietnamese bananas compared to other sources of supply, especially when transportation and logistics infrastructure are being increasingly invested. 

Mango is also a fruit type exported to China that has grown impressively this year, with an increase of nearly 30% in the past 8 months. With good growth in exports to China, this year's mango exports can reach USD 350 million. In general, most key fruits exported to China are experiencing high growth rates of 25–30%, particularly durian of 40% or more.

Although dragon fruit exports to China have decreased due to strong competition from dragon fruit produced in China, dragon fruit still ranks second in terms of turnover and contributes significantly to vegetable and fruit export turnover to this market.

Vietnam has many types of fruits that are favored by Chinese people, but why is only durian currently reaching a billion-dollar turnover and having such outstanding growth?

Mr. Dang Phuc Nguyen: China is the world's leading fruit producer. In addition to temperate fruits, they also produce many tropical fruits and vegetables, such as banana, mango, and recently dragon fruit, with a large output. Therefore, in recent years, the export turnover of many Vietnamese fruits to the Chinese market has only been around a few hundred million to less than USD 500 million.

Additionally, when exported to China, Vietnamese fruits often find it difficult to compete with local fruits of the same type due to many added costs for logistics, taxes, etc. On the other hand, with the same type of fruit, Chinese consumers often give priority to domestic products to support domestic production. Technical barriers to protect domestic production also significantly affect many types of fruit imported into China. 

But for durian, the Chinese market has a huge demand for this fruit. China's area and output are currently insignificant. Therefore, Vietnamese durian, Thai durian, or Malaysian durian have not faced competition from Chinese durian but only have to compete with each other. This is helping Vietnam's durian exports to the Chinese market grow very strongly in recent times thanks to large output, good quality, and even harvest time throughout the year.

In the first 8 months of the year, fruit and vegetable exports to China reached USD 3 billion, nearly equal to the export turnover to this market in 2023. With that result, what is your opinion on fruit and vegetable exports to China this whole year?

Mr. Dang Phuc Nguyen: Fruit and vegetable exports to China in the remaining months of this year will continue to be favorable. China is about to enter the cold season when producing many types of vegetables and fruits faces difficulties, so this country has to increase imports of vegetables and fruits, including imports from Vietnam. Besides, at the end of the year, the Chinese market has a great demand for vegetables and fruits to serve the holidays. Therefore, it is forecast that fruit and vegetable exports to the Chinese market this whole year will reach USD 4.5–5 billion.

Fruit and vegetable exports to China have been growing rapidly in recent years. What role are the Protocols that allow the export of some Vietnamese fruits to China playing in this growth, sir?

Mr. Dang Phuc Nguyen: Over the past 2 years, we have signed Protocols of great significance to fruit and vegetable exports, especially the Protocol allowing fresh durian exports to China signed in July 2022. Since this Protocol was signed, durian exports to China have continuously grown dramatically, and durian has become the No. 1 export product of Vietnam's fruit and vegetable industry, with a value of more than USD 2.2 billion in 2023 and exceeding the USD 2.5 billion mark in the first 9 months of this year.

Recently, we signed two more Protocols allowing the export of frozen durian and fresh coconut to China. It is expected that in the near future, these two Vietnamese products will also reach the Chinese market after businesses have planting area codes and packaging facility codes, meet other regulations of China, and sign export orders.

In addition to the strong growth of the Chinese market, how are fruit and vegetable exports to other markets going this year, and how much are fruit and vegetable exports expected to reach for the whole year, sir?

Mr. Dang Phuc Nguyen: Besides the Chinese market, most major markets for Vietnamese fruits and vegetables are also experiencing very impressive growth. In the first 8 months of the year, fruit and vegetable exports to the US reached USD 227 million, up 35% over the same period in 2023. Exports to South Korea reached USD 215 million, up 45%. Exports to Thailand reached USD 163 million, up 89%.

Population growth, along with awareness and demand for healthy foods that are increasing globally, are the main reasons that are helping Vietnam's fruit and vegetable exports grow positively. It is estimated that by the end of September, fruit and vegetable exports to markets will reach USD 5.6 billion. It is forecast that this year, fruit and vegetable exports will exceed the USD 7 billion mark for the first time.

Sir, with the demand for fruit and vegetable consumption growing rapidly across the globe, after reaching the USD 7 billion mark this year, what milestone can Vietnam's fruit and vegetable exports reach in the coming time?

Mr. Dang Phuc Nguyen: With the growing demand for healthy foods, including fruits and vegetables, I think that Vietnam's fruit and vegetable industry will increasingly develop and continue to grow in terms of exports. With the potential of Vietnam's fruit and vegetable industry, it is completely possible to reach the export milestone of USD 10 billion in the future.

Thank you, sir!