Deep processing is the key to taking Vietnamese fruits to world markets

VCN - The opinion of Mr. Dang Phuc Nguyen (photo), General Secretary of the Vietnam Fruit and Vegetable Association, speaks with Customs News.
Mr. Dang Phuc Nguyen
Mr. Dang Phuc Nguyen

Could you share some of the key features of Vietnam's fruit and vegetable export results since the beginning of the year?

Vietnam's fruit and vegetable exports are on a downward trend. In July 2022, Vietnam's export turnover of fruit and vegetable was estimated at USD256.6 million, down 1.2% over the previous month and 3.4% over the same period in 2021. Accumulating seven months, export turnover is estimated at USD1,935.8 million, down 15.6% over the same period in 7 months of 2021.

In particular, the Chinese market - which accounts for 60% of Vietnam's export fruit and vegetable market share, recorded a sharp decrease of 34%, which had a great impact on the overall export results of the fruit and vegetable industry. China's implementation of the "Zero Covid" policy has caused many difficulties for countries bringing goods to China, including Vietnam.

As for the US market, although the statistical results show growth of 23% in turnover, during a recent survey to the US market, it was found that Vietnamese fruits are under great competitive pressure from countries such as Mexico, Peru, and Ecuador. Because of theirthe geographical proximity, fruits from these countries have much lower transportation and logistics costs to the US than Vietnam, so the selling price is more competitive. For example, a whole jackfruit costs only about VND25,000/kg, rambutan is about VND50,000/kg and watermelon is about VND30,000/kg, equivalent to the selling price in the Vietnamese market. Currently, each year, Mexico fruit exports to the US are around USD7-8 billion.

In US supermarkets, Vietnamese fruits appear very rarely. As inflation is high, Americans tend to save and switch to buying cheap products. This makes it harder for Vietnamese goods to compete. Previously, Vietnam exported a lot of products such as dragon fruit, rambutan, mangosteen and litchi, though all faced great competition due to increased costs.

Although Vietnam's fruit exports to China have declined sharply, the good news is that many fruits such as durian and passion fruit have been allowed to be officially exported. Will this help revive export turnover in this market?

Previously, before China signed a protocol with Vietnam, Vietnamese enterprises exporting through this market had to go through a small-traffic route with many risks because they did not have contracts and could not promote Vietnamese fruits. The Chinese side also does not encourage this form of export. The congestion of agricultural products at the northern border in recent times is a risky reality of this form of informal export.

Now, with the ability to export officially, businesses can promote the promotion of Vietnamese fruits in the media, the purchase and sale also have a clear contract. In addition, the selling price for Vietnamese fruit will also be higher because Vietnamese enterprises do not have to go through many traders but can work directly with large Chinese corporations and supermarkets. This also creates a foundation for developing sustainable raw material areas, and forming standard packaging facilities, thereby improving product quality.

When businesses build a brand, a national brand will also be formed. Currently, each year, Vietnam only exports durian with about USD150 million, while Thailand exports to China USD3.5 billion. This shows that there are still great opportunities and official export is the catalyst for improving quality and increasing export turnover.

The issue of food quality, safety and hygiene for agricultural products and vegetables exported to fastidious markets has been discussed a lot, but why have shipments been returned or destroyed due to chemical residue?

About 1-2 years ago, when exporting to fastidious markets like the EU, many enterprises and manufacturers did not fully understand the regulations on quality, including regulations on the concentration of chemical residues. The EU's allowable residue level is very low, and even if it has been approved by other markets such as the US, it still does not reach the EU. There is also a situation where enterprises receive orders of 10 tons, but the standard planted output is only about 8-9 tons, so enterprises buy more outside to meet the quantity of 10 tons. The risk is that this part purchased from outside is not well controlled in terms of the farming process, so there may be residues, when the EU takes a sample to check it, it hits this part right away, so the shipment is returned.

Currently, businesses are much more cautious; they do not dare to buy outside products unless they understand their farming process. In addition, exporters to fastidious markets have been interested in building their own raw material areas, linking with cooperatives and large farms to apply standard farming processes. Since then, from the end of 2021 up to now, the situation of being reflected has decreased a lot and is no longer as common as before.

Deputy Prime Minister Le Van Thanh has just signed Decision No. 858/QD-TTg, approving the "Strategy to develop mechanization of agriculture and agro-forestry-fishery processing until 2030". This has the goal of developing modern agricultural product processing and meeting the needs and regulations of the consumer market; to turn Vietnam into a processing center for agricultural products ranked in the top 10 of the world's leading countries by 2030. How will this affect the fruit and vegetable industry in particular and agricultural products in general of Vietnam?

This decision is a testament to the foresight of the Government. For a long time, Vietnam's agricultural exports have been mainly in raw form, costing a lot of logistics costs, while the value content is not high, especially in the context of high fuel prices and the still raging Covid-19 epidemic. In fact, inflation in large consumer markets is a big disadvantage. A container of durian exports is more than half shell and seeds. If it can be processed into split durian or ready-to-eat products, one container of finished product will be equivalent to three containers of raw fruit as today, thereby reducing a lot of costs. “Lighter” in weight but will be “heavier” in value.

It shows that the promotion of deep processing is imperative to bring Vietnamese fruits to any place in the world. With this decision of the Government, many Vietnamese fruits such as durian, coconut, pineapple, and passion fruit will have the opportunity to increase in value. Many products that only require very simple processing are also popular in the market. For example, in US supermarkets, fruit products provided by Mexico are a combination of many types of ready-made, frozen fruits that are widely consumed. With only a moderate amount of money, consumers can enjoy a variety of fruits, which is very convenient. Enterprises should learn more about market tastes and start with simple products first when capital and technology capacity is limited.

I believe that with this new decision and the active participation of relevant ministries, fruit and vegetable processing activities and agricultural products will prosper, which brings a new face to Vietnam's agricultural export industry.

By Nguyễn Hiền/Bui Diep

Related News

Cashew exports are struggling because of being on passive in raw material sources

Cashew exports are struggling because of being on passive in raw material sources

VCN - For each container of exported cashew kernels, enterprises lose hundreds of millions of dong when they have to import raw materials at high prices, while export prices are not adjusted to increase accordingly.
Priority is given to exporting seasonal agricultural products

Priority is given to exporting seasonal agricultural products

VCN - Many important export agricultural product groups of Vietnam will encounter certain obstacles in the consumer market when the massive harvest begins. The problem is that priority needs to be given to avoid the situation of "good harvest and loss of value" for seasonal agricultural products.
Lang Son: Extending working hours, facilitating exporting agricultural products

Lang Son: Extending working hours, facilitating exporting agricultural products

VCN - According to assessments, at this time, Tan Thanh Border Gate and Huu Nghi International Border Gate are two border gates that have a large number of agricultural products and fresh fruits cleared every day. To ensure smooth cargo clearance of goods, Lang Son Customs has been extending working hours to 10pm - 11pm to receive and handle procedures for businesses.
Agricultural, forestry and fishery product exports continue to "scoring points"

Agricultural, forestry and fishery product exports continue to "scoring points"

VCN - In the first four months of 2024, the country's total export turnover of agricultural, forestry and fishery products is estimated to reach more than US$19 billion, an increase of 23.7 percent compared to the same period last year. Most key agricultural and forestry export products increased higher than the same period last year as well as the export value to all markets increased.

Latest News

New opportunities for Vietnam-Russia trade

New opportunities for Vietnam-Russia trade

The upcoming official visit to Vietnam by Russian President Vladimir Vladimirovich Putin is expected to open up new opportunities in bilateral relations, aiming towards the prosperous development for both sides.
MoIT launches anti-dumping probe into galvanised steel originating from China, RoK

MoIT launches anti-dumping probe into galvanised steel originating from China, RoK

The Ministry of Industry and Trade (MoIT) has requested an investigation and application of anti-dumping measures against some galvanised steel products originated from China and the Republic of Korea (RoK).
Greenovation forum for businesses to be held later this month

Greenovation forum for businesses to be held later this month

Given the rising demand for sustainable development and the associated business opportunities, the Vietnam Independent Directors Association (VNIDA) will host a forum for companies to demonstrate their commitment to both economic interests and environmental responsibility in Ho Chi Minh City on June 26.
Quang Ninh aims to attract 3 billion USD worth of FDI this year

Quang Ninh aims to attract 3 billion USD worth of FDI this year

Northern Quang Ninh province has attracted more than 1.52 billion USD worth of foreign direct investment (FDI) in the first half of this year and is poised to reach its goal of 3 billion USD in FDI for the full year.

More News

Import-export businesses reduce costs thanks to the customs clearance location at Thanh Phuoc Port

Import-export businesses reduce costs thanks to the customs clearance location at Thanh Phuoc Port

VCN - As the first dry port of Binh Duong province to be announced, Thanh Phuoc Port has just been recognized by the Ministry of Finance as a Customs Clearance Site, which is expected to promote the transportation of goods by waterway, to save logistics costs for businesses.
Quang Ninh strives to become northern region’s marine aquaculture hub

Quang Ninh strives to become northern region’s marine aquaculture hub

The northeastern province of Quang Ninh aims to become a fisheries hub in the northern region by 2030.
Bac Giang lychees promoted in Thailand

Bac Giang lychees promoted in Thailand

Fresh lychees from Luc Ngan district, the northern province of Bac Giang, continue to be sold at the supermarket chain of Gourmet Market and shopping malls belonging to Thailand’s The Mall Group this year.
Quảng Ninh posts fourth fastest growth in Red River Delta

Quảng Ninh posts fourth fastest growth in Red River Delta

The gross regional domestic product (GRDP) in the northern province of Quảng Ninh expanded at an estimated 9.02% year on year during the first half of 2024, ranking fourth in the Red River Delta and eighth nationwide.
New decree to set stage for innovative start-up economy

New decree to set stage for innovative start-up economy

The development of a separate decree on innovation and innovative start-ups is underway with an aim to leverage innovative start-up firms to a new height.
Early US recognition of market economy to increase opportunities for Vietnamese exports

Early US recognition of market economy to increase opportunities for Vietnamese exports

The US's recognition of the market economy in Vietnam will help expand business opportunities for Vietnamese enterprises and pave the way for Vietnamese exports to this market, according to experts.
Industrial production grew on a large scale

Industrial production grew on a large scale

VCN - 55 localities had an increase in the index of industrial production (IIP) compared to the same period last year, only 8 localities had a decrease in IIP compared to the same period last year.
More export opportunities from the Chinese market

More export opportunities from the Chinese market

VCN – Besides 12 fruit and vegetable items; bird's nest, fish meal and some products for the production and processing of animal feed, dairy and seafood products that have been officially exported to China, fresh coconuts, frozen durian, crocodiles, poultry... are expected be officially exported to the Chinese market in the near future.
Việt Nam

Việt Nam's cinnamon exports hits over $96.3 million in five months

Farmers have been continuously working on new techniques to improve the quality and productivity of cinnamon trees.
Read More

Your care

Latest Most read
New opportunities for Vietnam-Russia trade

New opportunities for Vietnam-Russia trade

The upcoming official visit to Vietnam by Russian President Vladimir Vladimirovich Putin is expected to open up new opportunities in bilateral relations, aiming towards the prosperous development for both sides.
MoIT launches anti-dumping probe into galvanised steel originating from China, RoK

MoIT launches anti-dumping probe into galvanised steel originating from China, RoK

The Ministry of Industry and Trade (MoIT) has requested an investigation and application of anti-dumping measures against some galvanised steel products originated from China and the Republic of Korea (RoK).
Greenovation forum for businesses to be held later this month

Greenovation forum for businesses to be held later this month

Given the rising demand for sustainable development and the associated business opportunities, the Vietnam Independent Directors Association (VNIDA) will host a forum for companies to demonstrate their commitment to both economic interests and environmental responsibility in Ho Chi Minh City on June 26.
Quang Ninh aims to attract 3 billion USD worth of FDI this year

Quang Ninh aims to attract 3 billion USD worth of FDI this year

Northern Quang Ninh province has attracted more than 1.52 billion USD worth of foreign direct investment (FDI) in the first half of this year and is poised to reach its goal of 3 billion USD in FDI for the full year.
Import-export businesses reduce costs thanks to the customs clearance location at Thanh Phuoc Port

Import-export businesses reduce costs thanks to the customs clearance location at Thanh Phuoc Port

VCN - According to Director of Binh Duong Customs Department Nguyen Tran Hieu, currently, the majority of import and export goods of businesses in the area are transported by sea.
Mobile Version