Fruits and vegetables have many opportunities to set a USD 6 billion export record

Lots of fiscal space for durian

In the first quarter of 2024, along with the recovery of the world market and increased export orders, Vietnam's import and export activities have prospered, according to the General Statistics Office.

Total import and export turnover of goods in March 2024 is estimated at USD 65.09 billion, up 35.6% over the previous month and 12% over the same period last year. Exports are estimated at USD 34.01 billion, up 37.8% over the previous month and 14.2% over the same period last year (the same period in 2023 decreased by 14.3%).

In the first quarter of 2024, the total import and export turnover of goods is estimated at USD 178.04 billion, up 15.5% over the same period last year. Exports alone increased by 17%, contributing to the trade balance of goods with a surplus of USD 8.08 billion.

Vietnam had 16 products with export turnover of over USD 1 billion in the first 3 months of 2024, accounting for 82.1% of total export turnover. In particular, exports grew steadily in all three groups of agricultural, forestry, and aquatic products; processing and manufacturing industries and mineral fuels.

For the agriculture, forestry, and fisheries groups, exports are estimated to reach USD 9.9 billion, up 26.1% over the same period in 2023, accounting for 10.6% of the country's total export turnover. In this group, some products have high export turnover compared to the same period last year, such as Coffee increased by 54.2%; rice increased by 40%; tea increased by 27.2%; vegetables and fruits increased by 25.8%; cassava and cassava products increased by 21.1%; cashew nuts increased by 20.5%; Wood and wood products increased by 18.9%.

Thus, for the first time in the first quarter, fruit and vegetable exports exceeded USD 1 billion ( USD 1.23 billion). Notably, there is still much room for Vietnamese fruits and vegetables to reach the record mark of USD 6 billion.

Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, said the primary fruit and vegetable turnover contributor is still durian. This item's growth is double the average rate of fruits and vegetables in the first quarter of 2024 (up to 66%) compared to the same period in 2023.

In particular, Vietnam has surpassed Thailand's No. 1 position in durian exports to China, increasing its market share from 32% in 2023 to 57%. The value of durian exports to China currently accounts for 98% of Vietnam's total durian export turnover.

The General Administration of Customs of China confirmed this. The country of billions of people imported 53,110 tons of fresh durian in the first two months of 2024, with a value of USD 283.6 million. Vietnam's imports were 32,750 tons, worth USD 161 million, increasing 2.4 times in volume compared to last year.

According to the annual cycle, durian exports peak in May - June and September - October. In 2023, these two periods helped the durian industry earn up to USD 1.4 billion, more than double compared to the eight remaining months. If it grows as it did in the early 2023 period, durian exceed the USD 2 billion mark in 2023, according to Mr. Dang Phuc Nguyen.

Waiting for new items

In March 2024, the Plant Protection Department requested localities and specialized agencies to review and synthesize growing areas and packaging facilities for fresh coconut and frozen durian exported to China. The purpose is to accelerate the process of opening the market for two potential products to China and prepare all conditions for registration of growing area codes and packaging facilities after the Protocol is signed.

The General Secretary of the Fruit and Vegetable Association said that if Vietnamese frozen durian and fresh coconuts are opened to China soon, fruit and vegetable exports will continue to make a strong breakthrough. As China announced in 2023, this market imported USD 1.1 billion of frozen durian, mainly from Thailand and Malaysia.

China's durian market capacity is forecast to be about USD 20 billion, and the world's is nearly USD 30 billion. The growth rate of the durian industry in the period 2020 - 2025 is about 7%/year.

On that basis, Mr. Nguyen calculated that if the market is successfully opened, each of the two products, frozen durian and fresh coconut, would bring in about USD 300 million, exceeding USD 6 billion.

Another factor he pointed out is that the Central Highlands - the region providing large durian output - is in the opposite season with Thailand. If it continues to maintain its current price advantage in the market, durian can help the fruit and vegetable industry reach the finish line early in the fourth quarter of 2024.

Regarding opening the market for fresh coconuts, Mr. Cao Ba Dang Khoa, General Secretary of the Vietnam Coconut Association, admitted that businesses are ready and eagerly awaiting the protocol. According to Mr. Khoa, the USD 300 million forecast by Mr. Nguyen is "relatively modest" because coconut has been identified as a "billion dollar" industry for many years.

Mr. Nguyen Khac Tien, Chairman of the Board of Directors of Ameii Vietnam Joint Stock Company, informed that the business is closely coordinating with the authorities to complete the business profile to prepare for the "wave" of exporting frozen durian and Fresh coconuts as soon as the market officially opens.

"Determining which market to export to, we must firmly grasp that market. We always prepare carefully and ensure product quality every time we enter a new market," Mr. Tien said.