Local fruit growers urged to focus on domestic markets

Local fruit farmers are concentrating too much on exporting their products and failing to tap into the lucrative local market, according to the Institute of Agriculture Policy and Strategy for Agriculture and Rural Development.

The institute said that in the first nine months of this year fruit exports fetched about US$350 million while the amount of fruit consumed in Ha Noi and HCM City markets was worth $400 millions

The institute said that domestic sales could have been higher if local producers improved quality and branding.

“Vietnamese fruit needs better branding so it can be sold in supermarkets,” said Bui Hanh Thu, deputy general director of Sai Gon Co-op supermarket chain.

Thu added that consumers were mainly concerned with taste, appearance and quality.

Hoang Trong, a market research expert at the Enterprise Support and Business Research Centre, said a survey of 1,000 consumers last November showed that the public were more concerned about food hygiene and safety than appearance, taste or price.

“Turnover from imported fruit accounts for 35 per cent of all fruit sold in supermarkets. Although the price of imported fruit is 30 per cent higher than domestic fruit, consumers still preferred imported fruit,” said Nguyen Thi Hong Khanh, director of Bien Hoa Co-opMart supermarket.

Bucking the trend are fruit producers who have successfully built up their brand name, such as Nam Roi pomelo, Lo Ren star apple and Hoa Loc mango in southern Tien Giang Province, Ri-6 and Chin Hoa durians in southern Ben Tre Province .

These producers have received brand certificates from the Viet Nam Industrial Property Department and are popular with domestic consumers.

Viet Nam has a population of 86 million. If domestic producers want to thrive, they must maintain their local market share, said Phan Thuy Hoa, head of the vegetable and fruit export department at the Viet Nam National Vegetable, Fruit and Agricultural Product Corporation.

In addition, domestic firms have the advantage of reduced tax and transport costs, he said.

Tags: Vietnam agriculture, Vietnam business news