Fruit and Vegetable Exports Show Strong Growth Amid Economic Challenges

Amidst economic difficulties, the fruit and vegetable export sector has emerged as a beacon of resilience, swiftly adapting to tap into its vast potential and broaden its global footprint. Recent statistics released by the Import-Export Department under the Ministry of Industry and Trade paint a promising picture, indicating a substantial surge in fruit and vegetable exports. January alone witnessed a remarkable increase, with exports totaling US$510 million. This represents a notable uptick of 24.9% compared to December figures and an impressive 112.1% surge compared to the corresponding period last year.

The year 2023 witnessed several fruits experiencing extraordinary growth in export volumes. Notably, exports of durian skyrocketed by an astonishing 430.1%, reaching a value of $2.2 billion. Other fruits that saw significant growth include dragon fruit ($523 million), banana ($242 million), jackfruit ($168 million), and mango ($154 million). The optimistic trajectory of the sector is largely fueled by robust demand from the Chinese market. Vietnam is actively engaged in negotiations to expand its fruit exports to China while simultaneously intensifying efforts to penetrate other lucrative markets such as the US, EU, Australia, and the Republic of Korea.

Looking ahead, the Import-Export Department projects even more robust performance for the sector in the current year, with fruit and vegetable exports anticipated to reach an impressive $6.5 billion. This follows the sector’s stellar performance in 2023, where it achieved a record-breaking export value of nearly $5.6 billion. Minister of Agriculture and Rural Development, Lê Minh Hoan, underscores the imperative of adopting market-oriented strategies to ensure the sector’s sustained competitiveness. He emphasizes the need for a paradigm shift in mindset, highlighting Vietnam’s integration into the global market as a pivotal factor.

In the face of intensifying competition, Minister Hoan advocates for the modernization of planning processes within the agricultural sector, stressing the importance of adopting more market-driven approaches. Leveraging trade agreements and focusing on both domestic consumption and international expansion are deemed crucial for the continued growth of the industry. Despite the significant strides made, there remains ample room for further expansion in fruit and vegetable exports, which currently represent only a modest 2-3% of global revenue in this sector. General Secretary of the Vietnam Vegetable and Fruit Association, Đặng Phúc Nguyên, remains optimistic about the sector’s prospects, forecasting a growth rate of 15-20% in 2024. This could potentially see export values surpassing $6 billion or even reaching the $7 billion mark.

However, challenges persist, particularly in opening up markets for a wider variety of fruits. Vietnam’s market share in the global fruit and vegetable market remains relatively modest, particularly in lucrative markets such as the EU, where opportunities abound under the EU-Vietnam Free Trade Agreement (EVFTA). Enhancing product quality to meet stringent global standards and developing robust value chains are highlighted as key strategies to enhance competitiveness and stability within the sector. Nguyen Hong Lam, Chairman of the Vietnam Association of Circular Agriculture, underscores the importance of value chain development in improving product quality and ensuring price stability.

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