Fruit and vegetable exports hit record high in first half of 2024

According to the General Department of Vietnam Customs, fruit and vegetable exports continue to lead the sector with a turnover of nearly $3.5 billion in just the first six months of this year, an increase of over 28 per cent compared to the same period last year.

Durian, dragon fruit, and bananas are among the main fruit products contributing to export growth in H1. In addition to processed products, major markets have also recorded increases of 10-50 per cent compared to the same period last year.

Nguyen Thanh Binh, chairman of the Vietnam Fruit and Vegetable Association (VINAFRUIT) said, "Fruit and vegetable production has increased by about six per cent annually. The supply is large and stable. Secondly, global market demand is increasing. From now until the end of 2024, Vietnam's fruit and vegetable industry still has favourable conditions for development."

Fruit and vegetable exports continue to thrive due to increased demand in the traditional Chinese market. Exports to the Chinese market are estimated to reach about $2.2 billion, a 33 per cent increase compared to the same period in 2023.

Additionally, Vietnam and China have agreed to sign a protocol on fresh coconuts, opening up export prospects for Vietnamese coconuts and boosting fruit and vegetable exports.

Korea, the second-largest export market for Vietnamese fruits and vegetables in the past sic months, is estimated to reach $180 million, an increase of 57.9 per cent compared to the same period in 2023.

For the United States, the export value to this market reached nearly $150 million in the first six months of 2024, up 32.4 per cent compared to the same period last year.

Based on export trends in the first half of the year and current market analysis, there is still significant potential for the industry to breakthrough in the coming months.

While Vietnam's fruit and vegetable export is recording positive results in major markets, especially China, experts warn that over-reliance on just a few markets poses significant risks.

Potential risks include changes in import policies of partner countries. A notable example is when China previously tightened quarantine regulations, resulting in many Vietnamese fruit shipments being blocked at the border.

Moreover, economic recessions in importing countries could lead to trends of domestic market protection, directly affecting export turnover. Logistics issues also present a major challenge. Congestion at border gates not only causes delays in delivery but can also lead to product spoilage, especially for perishable items like fresh produce.

To reduce dependence on a single export market, businesses need to diversify target markets, improve product quality, build strong brands, and continuously enhance competitiveness.

Despite the expanding market, the quality of fruit and vegetable products remains inconsistent, with some shipments receiving warnings about pesticide residues.

Recently, the government approved a project to improve the implementation of the Agreement on Sanitary and Phytosanitary Measures (SPS), opening up new tools to promote the quality of exported fruits and vegetables.

Le Thanh Hoa, deputy director of the Agro Processing and Market Development Authority under the Ministry of Agriculture and Rural Development said, We must not only ensure transparency obligations, but also enhance capacity to meet scientific requirements in applying SPS measures or responding to SPS measures applied by other countries."

Additionally, there are instances of competitive buying and selling when the market fluctuates, especially in raw material areas. This long-standing issue persists despite numerous solutions, particularly for durian.

VINAFRUIT suggests that agencies should coordinate with local authorities and associations to improve inspection and supervision, effectively manage traders, prevent competitive buying and selling, and efficiently issue growing area codes.

With the current growth rate, the fruit and vegetable industry is confident it can reach a record export turnover of $7 billion this year.

Vietnam’s fruit and vegetable exports expected to hit $3 billion This year is forecast to be another bumper year for vegetable and fruit exports, with total export value expected to touch $3 billion.

Chinese activity back in vogue as fruit and veg surge As of January 8, Chinese customs will no longer tests imported commodities, including frozen foods, for COVID-19 at the border – action demonstrating that the Chinese government has taken another step towards complete reopening after its National Health Commission stated last month that it would soften its pandemic response.

Uplift in processed fruit and veg sector Processed fruit and vegetables are making up a growing percentage of fruit and vegetable exports, leading to potential for increased investment in the sector.