Vietnamese durian fever in China

“King of the fruits”

"Vietnamese durian has a competitive advantage over Thailand or Malaysia. The first advantage is close range, the second advantage is good quality. I confirm that the prices are approximate to Thailand and Malaysia. The exact number cannot be disclosed due to commercial factors", Mr. Lam Long Duc, General Director of Viet Hai Global Supply Chain Co., Ltd (Suzhou, China), said on April 21.

Mr. Lam rejected the information that "the price of Vietnamese durian is only 1/3 of that of Thailand or Malaysia".

Responding to CCTV13 channel of China Central Television, the representative of Viet Hai Company said: "It only takes 2 hours from the Vietnamese side to bring durian to our Huu Nghi Quan border gate. Durian fruit retains its freshness. Chinese consumers will now be able to eat delicious durian at competitive prices."

Meanwhile, a representative of the quarantine agency, directly under the Chinese Customs, confirmed that the first batch of Vietnamese durians exported to China on September 19 "completely met the 100% standard". It achieves the requirements of planting area, packing, and preservation.

Commenting on this event, the South China Morning Post, commented that durian is the most controversial fruit in the world. Oppositions often describe them as smelling like rotten onions or rotten eggs.

However, durian, also known as the "fruit king" to its fans, is taking center stage in China's latest glamorous diplomatic campaign in Southeast Asia. Beijing has pledged to import more durians from neighboring countries.

According to experts, in addition to meeting domestic demand, this also seems to be part of China's efforts to strengthen strategic ties with the region, amid increasing competition with the US.

Chinese Foreign Minister Wang Yi mentioned durians during his visit to the Malaysian capital Kuala Lumpur in July.

“I had a work lunch today, my good friend here treated me to a delicious Mao Shan Wang cake, I was very impressed,” Mr. Wang at the time told reporters at a joint press conference with Malaysian Foreign Minister Saifuddin Abdullah. He mentioned a cake made from a popular durian variety in the host country.

Foreign Minister Wang said that China is "ready to import more palm oil, tropical fruits, and other agricultural products" from Malaysia. 

A day later, in the southern Chinese city of Nanning, Mr. Vuong had a meeting with Vietnamese Deputy Prime Minister Pham Binh Minh.  After four years of negotiations, the two leaders agreed to allow Vietnam to export fresh durians to the Chinese market.

Foreign Minister Vuong also said that China " attaches great importance to Vietnam's interests in increasing exports of agricultural and aquatic products to China. Deputy Prime Minister Pham Binh Minh called on Beijing to allow more fruit imports from Vietnam.

Without mentioning the durian deal, China's Foreign Ministry said the two sides had agreed to "learn about setting up a mechanism to promote production and supply chain and strengthen the construction of ports to facilitate bilateral trade”.

Chinese media commented: Since then, Vietnamese durian farmers have been diligently preparing for the time when the Chinese market opens for their products. In July, 123 durian growers and 57 packing factories participated in a three-day training course organized by MARD to learn about Chinese food standards. 

Vietnam is expected to become the second largest exporter of fresh durian to China, after Thailand, so the durian industry will have more room to develop.

Recently, on September 19, at Huu Nghi international border gate, Lang Son province, China officially imported about 100 tons of Vietnamese durians.

Cambodia and the Philippines prepare to compete

China is also in discussions with Cambodia and the Philippines on durian imports. In early July, the trial program to import frozen durian from Cambodia started with the first shipment of 50 tons. 

This explosive trend is fueled by the new Regional Comprehensive Economic Partnership (RCEP), which makes it easier for China to import fresh fruit from Southeast Asia. The RCEP, which came into effect in January 2022, is now the world's largest trading bloc, accounting for 30% of global GDP. China joined the agreement with 10 Southeast Asian countries including Japan, South Korea, Australia, and New Zealand.

Xishuangbanna city in Yunnan province, China, is currently known as the largest concentration of durian in Southeast Asia. There is a wholesale market for vegetables and fruits. The market is also crowded with traders and tourists. Many types of durian are brought to this place from all over the region.

According to the owner of a durian shop, the market can sell a ton of durians per day during peak tourist season. Although costs have decreased thanks to RCEP, durian prices are still increasing due to increased demand.

In 2021, China's fresh durian imports increased 42.7% to 821,600 tons, and import value increased 82.4% to $4.205 billion. Durian imports have nearly quadrupled compared to 2017 and the momentum is expected to accelerate even faster this year.

The "fatty taste" and high nutritional value of durian seem to appeal to Chinese tastes. Despite the high price, up to $7 a piece, durian is still stacked in supermarkets. Many unique dishes also include durians, such as durian milk crepe, durian pizza, or even durian hot pot. All received a series of positive comments from fans on social networks.

Faced with increasing demand from China, durian exporting countries are also rushing to expand their scale. Thailand will produce about 1.29 million tons in 2021, up about 30% from 2019. 

“China's imports are already high, but China's per capita consumption is expected to increase even more. Farmers from Thailand have a lot of incentive to expand production,” an official at the Thailand Embassy explained.

Chinese people are actively hunting for a high-end Malaysian product, the "Musang King" durian, also known as the "Hermes of durian" in this country. Although production is forecast to decrease this year due to heavy rains, the Malaysian government is still calling for an export boost as durian plantations continue to expand thanks to large-scale investment from businesses.

For Southeast Asian countries, China's participation in RCEP is a strong wind to boost exports. Besides eliminating tariffs, the agreement has provisions that essentially make the clearance of perishable goods completed in less than six hours. This will significantly reduce costs and give durian a big advantage, as the freshness of the fruit is crucial.