After a long period of difficulties and declining exports, the fruit and vegetable production and export sector recently recorded a positive signal and is forecast to explode in the following year.
The reason why Vietnam’s fruit and vegetable exports were impacted strongly by the COVID-19 outbreak was that more than 70% of the products were exported in fresh form with a short storage period. In particular, the largest market is China, which adopts a “zero COVID-19” policy in parallel with raising import standards, which also confuses Vietnamese exporting enterprises.
NEW OPPORTUNITIES
Data from the Vietnam Fruit and Vegetables Association (Vinafruit) shows that exports of this sector in 10 months of 2022 are estimated at 2.8 billion USD, down 6.5% compared to the same period last year. However, if compared to the 18.9% decline level in the first 06 months of this year to the same period, export activities in the last months of the year have shown signs of a fairly good recovery.
Banana exports have many advantages, expected to grow fairly well this year. (Photo: Internet)
Mr. Dang Phuc Nguyen, General Secretary of Vinafruit, said that at the “Asia Fruit Logistica 2022” fair opened on November 02 in Thailand, Vietnam vegetable and fruit enterprises had achieved many successes. Here, enterprises directly meet and strengthen the relationship with old customers, at the same time, contact many new potential customers. Some Vietnamese fruits such as dragon fruit, durian, seedless lemon, etc are attractive to many customers. Remarkably, durian is asked for a lot by Thai customers because this country only harvests durian for 6 months, while Vietnam’s durian is all year round.
“Since October, fruit and vegetable exports have recovered when they enter the peak of consumption at the end of the year and the main markets have opened up new products. Typically, China opened its doors to fresh durian and passion fruit, piloting exports through Guangxi province.
And the US opens its doors to fresh pomelo. With the expectation of increased exports in the last two months of the year, the full-year export value could reach about 3.5 billion USD. In 2023, the fruit and vegetable sector is forecast to explode with an export value of up to 4 billion USD and increase further to 05 billion USD in the next year, ” Mr. Dang Phuc Nguyen said.
Explaining the above optimism, Mr. Nguyen said that Vietnamese fruit and vegetables have advantages in the Chinese market. In addition to the expansion of the market for durian, some other fruits such as dragon fruit, mango, pomelo, banana, etc will also be imported by China because this country has just experienced drought, so many cultivated areas are affected. In addition, after a period of tightening unofficial exports, farmers and enterprises began to adapt to the requirements of methodical production, gradually becoming capable of official export.
Speaking at a conference, Ms. Nguyen Phi Van, Chairman of the Vietnam Angel Investors Network, said that during recent trips abroad, she found that Vietnamese food, especially products processed from vegetables and fruits, were sold a lot but when she looked at the packaging, she found that the product origin was not from Vietnam.
“The world is about to find the origin. Therefore, food products originating in Vietnam are having a great opportunity. I am investing in a research and development enterprise that develops very potential banana cakes with the orientation to not only export branded banana products but also export business models ” – Ms. Phi Van said.
FOCUS ON OFFICIAL EXPORTS
Agriculture is the mainstay, the fruit and vegetable sector is waiting to explode. (Photo: Internet)
Mr. Ly Minh Hung, Director of Thanh Binh Cooperative (Dong Nai Province), said that banana growers this year achieved a profit of about 300 million VND/ha thanks to the main market – China attracts goods and niche markets also have a great demand. Up to now, the total banana export output of Thanh Binh Cooperative has doubled last year.
“Although bananas are officially exported to China, the recently signed Protocol on banana exports between Vietnam and China has greatly supported the entire chain of commodities. Thereby, the regulations on cultivation, packaging, and export are clear, helping farmers, cooperatives, and enterprises be more convenient to carry out” – Mr. Hung analyzed.
In addition to the bananas that have been invested to grow, Thanh Binh Cooperative is developing a new crop. Although no specific information has been disclosed, Mr. Ly Minh Hung – Director said that the cooperative produces by orders of European customers.
“A few months ago, I joined the survey team of the Trade Promotion Department – Ministry of Industry and Trade and found that this market needs many products that our cooperative can provide. Production by order will be more favorable for the cooperative than having goods and offering for sale” – Mr. Hung said.
Ms. Ngo Tuong Vy, Deputy Director of Chanh Thu Fruit Export Co., Ltd (Ben Tre province), said that thanks to persistence in official export, the enterprise is expected to achieve a growth of 30%-35% this year. The enterprise has officially exported durian to China and is preparing to export fresh pomelo to the US by the end of November.
“These are all items with great potential and high value. Durian alone can meet 10% of the needs of Chinese customers. In 2023, if the growing area is developed and the packing factory is expanded, the sales of the enterprise can increase at least 02 times ” – Ms. Vy said.
Mr. Nguyen Van Thu, Chairman of the Board of Directors and General Director of G.C Food Joint Stock Company – specializing in products processed from coconut jelly and aloe vera, said that the export of his company is slowing down. This is because the local currencies of the main markets such as Japan, Korea, etc are strongly losing their values, causing imports to have higher prices and purchasing power reduces. Importers ask enterprises to reduce prices or provide lower-level items to match the affordability of the people. However, Mr. Thu expected exports to rise again after the first quarter of 2023 as consumers adapt to the new price level.
Also noted a decrease in exports due to the declining purchasing power of the partner market, Ms. Nguyen Ngoc Huong, Director of Vietnam Nature Import and Export Co., Ltd., said that her company is still building standard growing areas, researching new products in accordance with the change of consumers, regularly visiting customers to be ready to increase export growth again when the market recovers./.