Vietnamese durian to reach the export target of 1 billion USD

According to the Import-Export Department under the Ministry of Industry and Trade, durian was reported to be the fruit with the highest increase in terms of export value during the first two months of 2023. Namely, Vietnamese durian's export value reached 56.9 million USD, which is increase of 290.8% over the same period in 2022. In addition to durian, several other fruits have grown significantly in export turnover including watermelon with an increase of 98%, jackfruit with an increase of 61%, and so on.

Durian is anticipated to maintain its triple digit export turnover growth, which started at the end of 2022. Vietnam's durian export reached 421 million USD in 2022, which is an increase of 136.8% compared to 2021. This considerable growth is mainly attributed to exports in the last few months of 2022.

Mr. Dang Phuc Nguyen, General Secretary of Vinafruit, said that after Vietnam and China signed the Protocol allowing the official export of Vietnamese durians to the Chinese market, exports of durian have risen exponentially, making durian the second most valuable export fruit after dragon fruit.

During the first two months of 2023, approximately 83% of the durian export turnover was targeted at the Chinese market. This figure demonstrated that the official export of Vietnamese durian to China has a noticeable impact on the export growth of this fruit.

Durian is currently in high demand in China. Vietnamese durian has been well received by Chinese consumers for its high quality, delicious taste, and competitive price due to low transportation costs as a result of the shared border between the two countries.

However, the promotion of durian exports to China is facing significant challenges, including the issuance of planting area codes and packaging facility codes. According to Mr. Nguyen, the number of  durian planting areas with a code is small compared to the total durian area and output as well as Thailand, who is the world's largest durian exporter.

Vietnam currently has around 110 thousand hectares of durian, with an annual output of nearly 1 million tons. However, only 246 codes have been granted for durian planting areas so far; and this figure is significantly smaller compared to Thailand with nearly 20,000 planting area codes. The lack of codes cause great difficulties to the consumption of durian on an area of 110,000 hectares, with a annual yield of nearly 1 million tons.

Furthermore, the limited number of planting area code will make it difficult to promote durian exports to China and other markets, thereby adversely affecting the ability to compete with durians from Thailand, Malaysia as well as other durian growing countries in the Southeast Asia.

Mr. Dang Phuc Nguyen commented that the Department of Plant Protection under the Ministry of Agriculture and Rural Development and durian growing regions should accelerate the issuance of planting area codes, packaging facility codes. On the other hand, the government needs to negotiate with China to recognize additional Vietnam's durian planting area codes and packaging facility codes.

The increasing demand from the Chinese market will drive Vietnam's durian exports to reach 1 billion USD by the end of this year if stakeholders overcome the aforementioned obstacles. Subsequently, durian is on track to become the second fruit of Vietnam with an export value of 1 billion USD, following dragon fruit.

According to Mr. Tran Van Phuong, Deputy Director of Binh Phuoc Department of Agriculture and Rural Development, the province currently has 4,802 hectares of durian; this is an increase of 28.4% compared to 2021, with an average yield of 9.5 tons per hectare. By March 2023, 10 cooperatives and businesses in Binh Phuoc have been issued planting area codes for export to China with a total area of 669 hectares. Four packaging facilities have also been assigned their codes.

Durian farming cooperatives as well as code-granted packaging facilities are coordinating to export to the Chinese market.

As a precaution against over-development of the durian trees, Binh Phuoc Department of Agriculture and Rural Development has proposed its local governments to orient, manage and develop durian according to the planning. Farmers are also recommended to study the specifications carefully, with emphasis on soil, water and care techniques to meet the standards, quality and productivity. Thorough planning will help ensure economic efficiency for farmers as well as facilitate consumption and export.