Export of fruits and vegetables reaches 5 billion USD milestone

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Export turnover of fruits and vegetables in the last 5 years. Chart: T.Binh

Exceeding expectations

According to preliminary statistics from the General Department of Customs, in the first half of November (1-15/11), the export turnover of fruits and vegetables reached 187.74 million USD.

This result brings the total export turnover from the beginning of the year to November 15 to 5 billion USD, an increase of over 2.06 billion USD compared to the same period last year.

It is worth noting that although the year has not yet ended, the export turnover of fruits and vegetables has already reached the highest level ever recorded.

In an interview with a reporter from Customs Magazine, Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association (VINAFRUIT), stated that in the history of the fruit and vegetable industry, there has never been a year with an export turnover of 5 billion USD.

"The highest export turnover year was 2019, with just over 3.7 billion USD. After that, due to the impact of the Covid-19 pandemic, the export turnover in the following years decreased, and in 2022, it only reached nearly 3.4 billion USD. This year, initially, the Association predicted the annual export turnover to be around 4 billion USD. However, by the end of November, it has reached 5 billion USD. This is also the target set for the fruit and vegetable industry in 2025. Thus, the fruit and vegetable industry has achieved the export turnover goal two years ahead of schedule," said Mr. Dang Phuc Nguyen.

Regarding the reasons for the impressive export turnover mentioned above, the General Secretary of the Vietnam Fruit and Vegetable Association believes that several significant factors contribute. These include the enhanced production, cultivation, and processing capabilities of individuals and businesses, alongside the increased adoption of high technology in cultivation, processing, and the organization of production according to Vietgap standards.

Another crucial factor is Vietnam's deep integration into the global economy through the signing of numerous bilateral and multilateral free trade agreements. Alongside this, government agencies have actively promoted and expanded markets, and facilitated trade-friendly solutions.

"The opening up by state agencies has led the individuals and businesses to engage in cultivation, production, and processing of products that meet the increasingly high demands of the global market. Without this opening up, even if good products were made, there would be uncertainty about where to sell them," shared Mr. Dang Phuc Nguyen.

Regarding the product structure, in addition to the impressive growth of durian with an expected turnover of 2.5 billion USD in 2023, other essential contributors include products such as dragon fruit, jackfruit, bananas, passion fruits, and mangoes…

According to the General Secretary of the Vietnam Fruit and Vegetable Association, jackfruit has also shown impressive growth of around 40% compared to the turnover of the same period in 2022 and is one of the "hundred million-dollar" export products in the fruit and vegetable sector.

With the results achieved so far, Mr. Dang Phuc Nguyen predicts that the export turnover of fruits and vegetables in 2023 will exceed 5.5 billion USD.

Mr. Nguyen provides this modest estimate compared to the strong growth trend earlier in the year because from now until the end of the year, the harvested amount of durians will be limited, and this is the largest export commodity group.

Plenty of room for growth

Regarding the prospects of fruit and vegetable exports in 2024, Mr. Dang Phuc Nguyen analyzes that despite the forecast of many economic challenges globally and domestically, the fruit and vegetable sector still has plenty of room to aim for an export turnover of over $6 billion.

The basis for this optimistic outlook is the forecasted increase in the production of the key product, durian. "In 2024, there will be additional cultivation areas for durian coming into harvest, and at the same time, the demand for consumption in the largest market, China, remains substantial," shared Mr. Dang Phuc Nguyen.

Furthermore, Vietnam is also negotiating with China to export more mainstream products to this market. Currently, two products being discussed and with the potential for mainstream export to China are frozen coconut and frozen durian.

Alongside the largest export market, China, Vietnam is also continuing to promote the expansion of fruit and vegetable exports to many important markets such as the United States, the EU, Australia, South Korea, and countries in the Middle East.

Another crucial factor is that the infrastructure and logistics systems are also rapidly developing in Vietnam, creating favorable conditions for overall import and export activities, including the export of agricultural products.

"Another important aspect is the changing global consumer demand towards plant-based foods, which is also a favorable condition for the fruit and vegetable sector in 2024 and the coming years," said Mr. Dang Phuc Nguyen.