January 21, 2025 | 01:08 GMT +7

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Friday- 11:08, 13/12/2024

Vietnamese bananas dominate market share in China

(VAN) From 3rd place, Vietnamese bananas surpassed the Philippines, accounting for nearly 41% of China's import market share, taking the lead after 10 years.
Bananas under the Pleiku Sweet brand of Hoang Anh Gia Lai are sold to major supermarkets in China. Photo: Thi Ha.

Bananas under the Pleiku Sweet brand of Hoang Anh Gia Lai are sold to major supermarkets in China. Photo: Thi Ha.

In recent years, Vietnamese bananas have emerged as one of the main export products, especially in the mainland Chinese market. Earlier this year, fresh bananas from Vietnam marked a major step forward when they dominated the shelves of the AEON supermarket chain in China, completely replacing bananas from the Philippines and Taiwan, which had previously dominated.

This has not only happened at AEON but has also spread to many other supermarket chains and large wholesale markets in the country.

Currently, Hoang Anh Gia Lai's Pleiku Sweet bananas, one of the prominent brands in China, are packaged according to Japanese standards in small quantities of 3-4 fruits per bag. Each week, this brand exports several dozen containers, meeting the growing demand of the Chinese market.

According to Mr. Doan Nguyen Duc, Chairman of Hoang Anh Gia Lai, bananas from Vietnam are a formidable competitor to exporters from the Philippines and Ecuador on the international trading floor.

Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, commented that the market share of Vietnamese bananas in China has increased sharply in the past two years thanks to their superior quality, beautiful designs, and reasonable prices.

The latest data from China Customs shows that in the first 8 months of the year, the country imported more than 1.1 million tons of bananas worth USD 592.1 million. Although the total import volume decreased by nearly 8% compared to the same period in 2023 due to the economic recession, Vietnam still emerged as a bright spot with an export volume increase of 19.6%, reaching 459,946 tons, accounting for more than 40% of total imports. The market share of Vietnamese bananas increased from 31.3% in 2023 to 40.7% this year - an impressive figure.

In contrast, competitors such as the Philippines are facing many challenges. Once accounting for two-thirds of China's total banana imports, the Philippines exported just 283,150 tons in the first eight months, down 39.2 percent from last year. The country's exports fell sharply by 46.7 percent to just USD 158 million.

In 2024, low Philippine banana production pushed prices up, creating a significant price gap with Vietnamese bananas. Previously, Philippine bananas were highly appreciated for their flavor, but the quality this season was not as expected, while the quality of Vietnamese and Cambodian bananas improved. Chinese consumers are gradually paying more attention to bananas imported from the Vietnamese and Cambodian markets.

Philippine banana prices, although falling, are still higher than Vietnamese products, making this fruit gradually lose its competitiveness.

Meanwhile, Ecuador, a country famous for its premium banana segment, maintained its position with an average value of USD 676.8 per ton - the highest among suppliers. However, it also suffered a slight decline in export volume and value.

The Import-Export Department (Ministry of Industry and Trade) stated that unfavorable weather in the Philippines and pest problems have reduced production and pushed up banana prices in this country, creating opportunities for exporters from Vietnam to expand their market share. In addition, geopolitical tensions have caused China to reduce imports from the Philippines, helping Vietnam take advantage of the opportunity to increase its position in this market.

Factors driving the success of Vietnamese bananas in China include product quality, stable output, and flexible pricing strategies. Vietnam has used its geographical advantage well, with logistics costs significantly lower than other countries. In addition, Vietnamese businesses have made efforts to comply with China's strict quarantine standards, considerably improving their access to this market.

However, exporting bananas to the Chinese market still faces challenges. According to Vo Quan Huy, Director of Huy Long An Company Limited, prices here fluctuate strongly, depending largely on the season and domestic demand. While other markets, such as Japan or South Korea, maintain stable prices all year round, China's prices change constantly, requiring exporting businesses to adjust their strategies to avoid losses flexibly.

In addition, weather factors also play an essential role. In China, the banana season usually lasts from May to September, with harvest from July to October. This means that product prices often decrease at the end of the year due to increased domestic supply. However, businesses with stable distribution strategies and superior quality still remain popular with consumers here.

In the context of increasingly fierce competition, Vietnamese bananas have affirmed their position thanks to the continuous efforts of businesses and flexible market access strategies. This is not only a positive signal for the Vietnamese agricultural industry but also opens up great opportunities to expand market share and develop sustainably in the future.

Author: Thi Ha

Translated by Huong Giang

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