Finding long-term strategies for Vietnam’s fruit and vegetable exports

Without a comprehensive strategy to enhance production chains and meet partner demands, Vietnam’s fruit and vegetable exports may struggle to achieve their targets.

According to preliminary statistics from the Vietnam Fruit and Vegetable Association (Vinafruit), fruit and vegetable exports in March 2025 reached nearly $421 million, a 10.5% decline compared to the same period last year. This marks the third consecutive month of decline for the country’s fruit and vegetable exports, prompting many to find solutions to this problem.

China’s market barriers

Vinafruit Secretary General Dang Phuc Nguyen warned that the sector is unlikely to reach its $8 billion export target for the year, potentially falling below 2024’s figure of $7.12 billion.

The primary reason is a sharp drop in exports to China, Vietnam’s largest fruit and vegetable buyer.

In the first two months of 2025, exports to China amounted to only $306 million—a 39% decrease from the previous year. Although exports to the U.S., South Korea, Japan, and Thailand increased by 8% to 66%, they were not enough to offset the shortfall from China.

Nguyen Dinh Tung, Vice President of Vinafruit and CEO of Vina T&T Group, acknowledged that the sector faces mounting challenges due to China’s tightening import regulations.

Durian, which accounts for 40% of total fruit export revenue, has been particularly affected. The drop in demand from China has led to lower prices for farmers in Vietnam.

Despite the recent resumption of durian exports to China, exporters remain cautious.

Vietnam's fruit and vegetable exports have declined in the first three months of 2025 (Photo: foodexpo.vn)
Vietnam's fruit and vegetable exports have declined in the first three months of 2025 (Photo: foodexpo.vn)

“If shipments fail to meet standards, they must be destroyed, and the exporter risks being blacklisted. This poses a major financial risk,” Tung noted. As a result, despite the peak durian harvest season, exporters are hesitant to increase shipments.

Chu Hong Chau, Deputy Director of DT Pro, a company exporting mango, dragon fruit, and fresh coconuts to Australia, the U.S., and New Zealand, highlighted another pressing issue: Export documentation.

Since businesses are no longer allowed to directly own cultivation zones, relying instead on cooperatives, the process of verifying the origin of goods has become increasingly complex.

“For China, not just durian but other key fruit exports will face challenges. China has already mandated hot steam treatment for mangoes and dragon fruit from Thailand and Cambodia. If similar measures are imposed on Vietnamese exports, shipments could decline further,” Châu warned.

The need for long-term strategies

According to Tung, Vietnamese farmers must adapt to international safety and quality standards. Different markets impose distinct regulations: the U.S. bans residue from seven chemicals and requires certified planting and packing facilities, while the EU prohibits residues from 36 chemicals and randomly inspects 10% of shipments. China, in turn, conducts frequent checks for heavy metals and plant diseases.

Le Thanh Hoa, Deputy Director of the Department of Quality, Processing, and Market Development under the Ministry of Agriculture and Environment, emphasized that Vietnam has strong export potential if it can address persistent issues in harvesting, post-harvest processing, preservation, and quality assessment. However, infrastructure limitations and high logistics costs remain major barriers.

“Businesses need support in finding and expanding markets, especially by increasing deep processing capabilities, building brand value, and boosting export competitiveness. Special attention should be given to Halal food markets such as the Middle East and Africa,” Hoa suggested.

Phan Thi Thu Hien, Director of the Plant Quarantine Center No. 2, pointed out several structural weaknesses to Vietnam’s agriculture industry: fragmented and unprofessional supply chains, the absence of standardized production processes, weak producer-exporter linkages, and a lack of investment in research and development of new plant varieties.

Despite challenges, some companies have reported positive growth. Nguyen Diep Phap, Vice President of International Business at GC Food, stated that his company’s exports saw a slight increase in early 2025, with a full-year growth target of 20%.

“While global economic conditions remain sluggish, and shipping costs remain high, our processed fruit products continue to be favored in Japan, South Korea, and Europe thanks to preferential tariffs,” Pháp noted.

Moreover, the ongoing U.S.-China trade conflict has prompted companies to relocate manufacturing operations from China to Vietnam, creating more opportunities for Vietnamese fruit processing facilities.

Vietnam’s fruit and vegetable sector stands at a crossroads. To sustain export growth, businesses and policymakers must adopt a long-term approach, focusing on quality improvements, compliance with international standards, and market diversification.

Phu Quy
Source: nld.com.vn

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