Currently, the coconut export of enterprises in Ben Tre has decreased sharply because some markets do not allow the direct import of coconut as before (For example, the United States or China).
Facing the COVID-19 pandemic and the overall impact on the global economy, enterprises are worried to find new markets
Having consumed all of the coconut inventory from the beginning of 2022 until now by trying other markets, however, Mr. Bui Duong Thuat – Director of Mekong Fruit Import and Export Co., Ltd., said that the US is still a potential market. The coconut export of his company is mainly to the US compared to other markets.
According to Mr. Thuat, in the past, the export of coconut to the US market was favorable but now, the US importers said that there has not been a contract with Vietnam on the export of coconut, so they have not been allowed to import coconut.
Mr. Thuat said that, in recent times, the export congestion to the US market had a big impact on the company. Since customers have been looking for other suppliers, it will take a longer time for the company to find new customers when the export to the US is reopened.
Besides, high transport costs make it difficult for Vietnamese exporters. Mr. Thuat hopes that the relevant units will quickly connect with the US and China for favorable export.
According to Mr. Tran Van Tam – trader in Ben Tre, raw dried coconut export to China has many difficulties. The implementation of the “ZERO COVID” policy in China has had a significant impact on the export market, causing the price of raw dried coconut to go down.
Mr. Tam shared that he only exports to the Chinese market so he has to stop and reduce the production until he finds another market.
Coconut export decreased sharply, enterprises are worried. (Photo: Internet)
According to the Ben Tre Department of Industry and Trade, enterprises in Ben Tre province exporting coconut decreased by more than 50% in volume compared to the same period last year.
Enterprises said that in the first quarter of 2022, export was not equal to a month of the previous year. Coconuts for export to the US account for about 40% but have not been exported yet. Currently, the main export market of coconut is Korea, Australia, Japan, Taiwan (China), Singapore, etc.
The reason for the decrease in coconut export is 3-6 times higher transportation rates than before. In addition, the purchase price of coconut in the province is rising due to low production, so enterprises cannot export.
In addition, in the first quarter of 2022, the amount of dried coconut exported to this market decreased by nearly 80% while coconut fiber was almost impossible to export. Currently, enterprises have moved the export of dried coconut to Thailand, but the price of dried coconut in the province is decreasing a lot, only from 40,000-50,000 VND/dozen and many establishments suspend purchasing.
Mr. Nguyen Van Be Sau, Director of Ben Tre Provincial Department of Industry and Trade, said that to ensure the export activities of enterprises in the coming time, the provincial authorities recommended the Central Government connect foreign export markets such as the US, China, and other markets, at the same time, promote trade and expand markets in other countries.
Along with that, the province strengthens the provision of information on foreign markets through many forms; monitoring and regularly contacting enterprises to update the operation situation of enterprises. Thereby, the province will promptly solve difficulties and support the export activities of enterprises.
In addition, the provincial authorities are working closely with overseas ambassadors, and trade offices in the key and potential export markets to understand the needs and tastes. From there, the province will timely inform and help connect enterprises in the province with importers through ambassadors, especially focusing on countries in the Free Trade Agreement.
On the other hand, the province will continue to support agricultural export enterprises through e-commerce channels such as organizing online fairs, and participating in major e-commerce platforms ( for example, Amazon, Alibaba, etc) to promote exports.