There are still worries...
Recently, China and the US have opened their markets and agreed to officially import Vietnamese coconuts. This is good news for the localities that are the “capitals” of Vietnamese coconuts in particular and the Vietnamese fruit and vegetable export industry in general.
The reason is that when the product is officially exported, it means that it has undergone a thorough review process and the production has met the standards of the host country. At the same time, the growing area is also given a code, proving that it meets the standards. This is the first step to ensure that the finished product after production can "legitimately" enter the local market.
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| Coconut exports could reach billions of USD this year (Photo: VGP) |
Currently, Vietnam is a major agricultural exporter, and China is also Vietnam's largest market. However, the number of products officially exported to this market can be counted on the fingers of one hand. The fact that coconuts are officially licensed for export to China and the US is an opportunity to increase export turnover and also an opportunity to build product brands.
According to data from the Import-Export Department - Ministry of Industry and Trade, in 2023, the export turnover of coconut and coconut-related products such as confectionery, cosmetics, handicrafts, etc. of our country will reach more than 900 million USD (ranked 4th in the world). With coconuts being officially licensed for import into two "powerhouses" the US and China, it is expected that the export turnover of fresh coconuts can increase by 200 - 300 million USD in 2024 and continue to grow strongly in the following years. Thus, if nothing changes, coconut will join Vietnam's billion-dollar agricultural export products.
The story of coconut is good news for agricultural exports. However, the path to conquering the billion-dollar target of coconut also faces many concerns.
Looking back at the story of durian, it can be seen that immediately after China agreed to officially import it at the end of 2022, durian exports increased sharply. According to the Vietnam Fruit and Vegetable Association, in the first 8 months of 2024, durian exports were estimated at 1.82 billion USD, an increase of 45% over the same period last year, contributing 40% to the total export turnover of fruits and vegetables. China is the largest export market for Vietnamese durian and Vietnam is the second largest supplier of fresh durian to China. Currently, about 90% of durian exports are to the Chinese market.
However, durian exports to China have been repeatedly warned for violating the growing area code. In addition, last June, the Chinese side also issued a warning because 77 batches of Vietnamese durian exported to this country were found to contain cadmium (a heavy metal) exceeding the permitted level.
The reason for this situation is that at many times, the rapid increase in demand for durian from the billion-people market has caused packaging facilities and durian growing areas to be unable to meet market demand, causing many households and businesses to "borrow" growing area codes and commit fraud to export. During the past time, along with the increase in durian export turnover, the authorities have continuously issued notices about impersonating durian growing area codes to profit from facilities that are not qualified to export.
The issue of “borrowing” durian growing area codes was once so “hot” that businesses proposed “separating durian into an independent industry to have its own management mechanism” to protect and help develop sustainably. The need for a systematic legal mechanism for the durian industry is because when compared with Thailand – a competitor of Vietnam, it can be seen that the success and reputation of this country in the market is also thanks to the strictness of sanctions, meaning that the components participating in the chain are very afraid of violations.
It is necessary to build strong enough sanctions for the coconut industry to develop sustainably.
The story of the “hot” growth of durian right after being granted an official export license is a lesson for us. Therefore, Ms. Nguyen Thi Kim Thanh - President of the Vietnam Coconut Association suggested that in order for the coconut industry to develop sustainably and soon achieve the set goal of billion-dollar exports, there needs to be a synchronous planning of raw material areas, meeting organic standards and export standards according to the requirements of the markets.
The reason is that currently, the area of organic coconut is still quite small, only concentrated in some localities in the provinces of Ben Tre, Tra Vinh, Binh Dinh... but mainly small-scale, only a few dozen to a maximum of 100 trees/household. Meanwhile, to "go the long way" in export, meeting market requirements is an extremely important factor.
Looking at Thailand, we can see that your side has built a very systematic brand for coconuts, from planning growing areas, improving quality to building a brand. Meanwhile, the most difficult thing for coconut products and businesses today is that compared to many countries exporting this product, Vietnam is still behind in terms of brand positioning, unsystematic planning of growing areas and raw material areas. People's thinking is still seasonal, not long-term, causing businesses to encounter difficulties.
The “highway” for coconuts has been opened, but there are many “barriers” on that road. These include standards on plants, food safety as well as origin. Not to mention, packaging and design are also big challenges for the coconut industry. Product processing capacity is also a big challenge that businesses must overcome on the way to conquering the billion-dollar target that is right in front of them.
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