Vietnam fruit and vegetable prospects

Apart from the backbone rice export, Vietnamese fruit and vegetables are conquering the ASEAN +3 market thanks to its freshness and delicacy. Vietnam is also increasingly diversifying its fruit and vegetable products to dominate this potential regional market.

ASEAN 3 – potential market for Vietnamese fruit and vegetables

According to the General Department of Customs, Vietnam earned US$9.7 million from fruits and vegetables exported to ASEAN, accounting for 28.7 % of the country’s total fruits and vegetables export turnover and increasing 60.5 % from the same period of 2009. Amongst seven importers of Vietnamese fruits, only the Philippines saw a decline from a year earlier. This market spent more than US$1 million on Vietnamese fruits and vegetables in the period, accounting for 3 % of total export turnover and declining 49.3 % year on year.

With a population of nearly 600 million in 2009, ASEAN is a potential market for Vietnamese fruit and vegetable products. In fact, exports of fruits and vegetables to ASEAN countries have increased strongly over the past years and are forecast to maintain high growth rates in the future.

The Vietnam Fruits and Vegetables Association (Vinafruit) said, in the ASEAN+3 bloc, China remained the largest importer and processor of Vietnamese fruits and vegetables with US$35.5 million in the first eight months of 2010, up 23.8 % over the same period in 2009, making up 40.7 % of Vietnam’s total exports, which are forecast to continue growing up sharply in the last months of the year. Vietnam’s main fruit and vegetable exports in the upcoming time will include dragon fruit, fried jackfruit, dried banana and dried coconut.

Japan came next with US$7.9 million, up 483.9 % year on year – the highest growth in the ASEAN+3 bloc. Dragon fruits brought in US$6 million to Vietnam in the eight-month period, up 422.2 %. Acerola export climbed 92 % on year to US$717,900.

Indonesia followed suit with US$9.7 million, accounting for 28.7 % of the total turnover and climbing 60.5 % year on year.

Exports of fruits and vegetables to Laos rose very quickly in recent years. In the first two quarters of 2010, fruit and vegetable exports to Laos valued at US$3.6 million, equal to 10.7 % of Vietnam’s total fruit and vegetable export turnover and up nearly 1.8 times from a year earlier. In addition, Vietnam’s fruit and vegetable exports to other markets such as Singapore, Malaysia and Thailand were also very good.

Diverse categories

According to Vinafruit, Vietnam exported some 14 items of vegetables to ASEAN markets. Chilli was the largest export of Vietnam with a turnover of more than US$3.7 million, up 88.9 % over the same period in 2009, followed by pumpkin with US$385,000, up 344.6 %, and cabbage with US$352,300, up 34.5 %.

Vietnam saw a strong rise in exports earnings of tubers. In particular, onion, potato and garlic remained three major exports in the first six months of 2010. The export turnover of the three items totalled US$14.5 million, up 112.9 % from the same period in 2009.

Fresh dragon fruit and processed coconut were a good source of incomes for Vietnam in the past time. The country earned more than US$8 million from fresh dragon, up 43.9 % year on year. In contrast, coconut export turnover slumped 13.4 % year on year to US$1.1 million.

Export turnovers of pineapple and mango soared in the first half of 2010. Pineapple exports valued US$207,500, up 17.2 times, while grapefruit and banana export earnings plummeted more than 97 % and 54.3 % to US$532 and US$15,800, respectively.

However, to date, Vietnam’s fruits and vegetables have been exported to only seven countries like Indonesia, Laos, Cambodia and the Philippines. The region remains a promising market for Vietnam’s fruits and vegetables.

Amongst 11 ASEAN member countries, only Singapore and Malaysia have relatively high demand for vegetables, especially fresh fruits and vegetables. However, export turnover of these commodities are quite modest in recent years. To boost exports, Vietnamese exporters need to pay more attention to quality, transportation, preservation, marketing and trade promotion. – VCCI

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