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Call for Enhanced Regulation in Vietnam's Thriving Durian Industry

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Call for Enhanced Regulation in Vietnam’s Thriving Durian Industry

by Geraldine S.
05/24/2024
in Compliance, Supply Chain Transparency

As Vietnam’s durian industry experiences substantial growth, stakeholders are advocating for more rigorous management to ensure its sustainable development. This push follows the significant success Vietnamese durians have seen in the Chinese market, with exports reaching over US$2.2 billion last year. Despite these achievements, challenges in adhering to import regulations have surfaced, including frequent inspections for plant diseases and food safety concerns. Issues with traceability and compliance have also arisen, with some packaging facilities reportedly procuring durians from unregistered areas, leading to problems with product origin and process adherence.

Ngô Tường Vy, General Director of Chánh Thu Fruit Import-Export Joint Stock Company, emphasized the economic benefits to farmers but also highlighted substantial financial losses incurred from contract cancellations in the business sector. Vy stressed the necessity for a structured legal framework to protect and sustain the industry’s growth. Drawing parallels, Vy pointed to Thailand’s durian market, which has flourished globally due to stringent regulatory enforcement throughout its supply chain. Such measures have proven beneficial not just for individual farmers but for the broader industry and national economy.

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The durian crop’s lengthy life cycle of 30 to 40 years further underscores the need for long-term strategies to maintain the reputation and quality of Vietnamese durians. Võ Quan Huy, Director of Huy Long An Co., Ltd., added that enhancing traceability, particularly in seedling origins, will become increasingly important. He suggested that new durian plantations should be assigned codes to boost the volume of regulated exports. Currently, Vietnam has 708 durian growing areas and 168 packaging facilities with official codes permitting exports to China, with several more awaiting approval from the General Department of Customs of China (GACC).

Nguyễn Phong Phú, Technical Director of Vina T&T Import-Export Company, argued that strengthening the supply chain is crucial to address the industry’s prevalent issues, such as pricing inconsistencies and frequent breaches of contract. The call for tighter regulation and improved management practices highlights the need to balance rapid industry growth with sustainable practices and market stability.

Catch the latest in supply chain news on The Supply Chain Report. Visit ADAMftd.com for free international trade tools.

#SustainableDurian #VietnamDurianNews #SupplyChainManagementNews #AgricultureInnovation #FruitExport

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