Repositioning the fruit and vegetable export industry

The continuous decline in fruit and vegetable exports since the beginning of the year has posed an urgent problem in restructuring this industry.

Exports recorded double-digit decline

Fruit and vegetable exports in the first three months of this year have been on a continuous downward trend compared to the same period last year. Accordingly, if in January 2025, fruit and vegetable exports earned 416 million USD, down 5.2% over the same period last year, then in February 2025, the export turnover only reached 303 million USD, down 6.5% over the same period last year.

It is expected that in this first quarter, the total export turnover of fruits and vegetables will reach over 1.1 billion USD, down over 13% compared to the same period last year.

Notably, fruit and vegetable exports in March 2025 are expected to reach 420 million USD, although up about 34% compared to February, but recorded the deepest decline compared to the same period last year (down 10.5%). It is expected that in the first quarter of this year, the total export turnover of fruits and vegetables is estimated to reach over 1.1 billion USD, down over 13% compared to the same period last year.

Talking to reporters of the Industry and Trade Newspaper about this issue, Mr. Nguyen Thanh Binh - Chairman of the Vietnam Fruit and Vegetable Association (Vinafruit) - said that the sharp decline in durian exports was the reason for the double-digit decrease in fruit and vegetable export turnover.

In addition to the reason that durian is in the off-season (from November last year to March this year) so the output is low, the Chinese market has tightened the inspection of O-yellow and cadmium for 100% of durian batches imported into this market, causing some businesses specializing in exporting durian to this market to proactively stop "shipping" even though not all durian products from Vietnam exported to China do not meet the standards.

On the business side, speaking to reporters from the Industry and Trade Newspaper, Mr. Nguyen Dinh Tung - CEO of Vina T&T - said that currently, export orders to the Chinese market are mainly fresh coconuts. Regarding fresh durian, the unit has not yet resumed exporting and is taking steps to prepare for the most effective export. "Each container of durian is worth several billion VND. If not carefully prepared, the exported goods are destroyed or turned back through the border gate, the loss to the business will be significant," said Mr. Tung.

To the long-term story of the fruit and vegetable industry

The decline in fruit and vegetable export turnover in the first quarter also poses common problems for the Vietnamese fruit and vegetable industry. According to Mr. Le Thanh Hoa - Department of Quality, Processing and Market Development (Ministry of Agriculture and Environment), currently, not only China but many large markets have issued new strict regulations on maximum residue levels of pesticides (MRL) and plant quarantine. In addition, there are technical barriers and compliance related to plant quarantine and food safety (pests, MRL, heavy metals, etc.).

Meanwhile, our fruit and vegetable industry chain is still fragmented and unprofessional. Most of the producers are small and fragmented; production costs are high; preliminary processing and preservation are not good, especially post-harvest handling. Quality management lacks technical standards and regulations; product quality inspection and assessment are mainly based on experience; there is a lack of assessment equipment and machinery. Export transportation costs are high, by air, road and waterway, all higher than in other countries in the region.

Opening new markets for Vietnamese fruits and vegetables is also not easy. Major import markets such as China, the United States, South Korea, Japan, Australia, and New Zealand all have strict requirements in assessing the risks of opening the market, in addition to high requirements on pesticide residue levels. Especially the Chinese market in the last months of 2024 and early 2025.

Meanwhile, the ASEAN market has similar tropical fruit varieties to Vietnam (mango, durian, longan, dragon fruit, mangosteen, jackfruit, pineapple, coconut,...) and also has export demand to the markets where Vietnam is exporting.

Markets that do not require open risk assessment have very high requirements on microbial contamination and pesticide residues, heavy metals, in addition to requirements on labor, environment and sustainable development.

Talking to reporters from the Industry and Trade Newspaper about this issue, agricultural expert Hoang Trong Thuy analyzed that the key factor for Vietnamese fruits to conquer demanding markets is to ensure strict standards on pesticide residues, which importing countries pay special attention to.

The story of growing area codes is an example. Not only does China require growing area codes for durian, but now export markets such as the United States, the EU, Australia, Japan, and South Korea also require growing area codes for some types of fruit.

Vietnam exports fruits and vegetables to more than 40 countries and territories around the world. Major markets include China, the United States, South Korea, Japan, etc. However, Vietnam's exports are dominated by the Chinese market due to its logistics advantages and the size of this market, which accounts for more than 64%, with some fruits such as durian accounting for more than 95%. The market is price-sensitive. The lack of market diversity increases the vulnerability of the industry.

By 2025, Vietnam aims to export fruits and vegetables worth 8 billion USD. To achieve this figure, businesses need to make great efforts to overcome barriers in production processes, delivery processes, and improve quality to ensure the requirements set by importers for each market.

Currently, the country has issued 8,052 growing area codes and 1,596 packaging facility codes for export. Notably, 93 agricultural, forestry and fishery products have been ranked as national brands, an increase of 11% compared to 2022.

Regarding the issuance and management of growing area codes, Mr. Do Duc Duy - Minister of Agriculture and Environment proposed to ensure consistency and transparency. In particular, there should be no distinction between growing area codes for domestic and export agricultural products.

“We must develop quality from the root to enter multiple markets,” Mr. Tran Thanh Nam, Deputy Minister of Agriculture and Environment, emphasized, saying that food safety and quality management in the coming time needs to be more substantive and suitable for each region. In particular, the agricultural sector in particular needs to change its thinking about food safety management according to the value chain.

In the first quarter of 2025, the total export turnover of fruits and vegetables is estimated to reach over 1.1 billion USD. The Vietnam Fruit and Vegetable Association believes that with the current situation, this year's export turnover of fruits and vegetables is unlikely to reach the target of 8 billion USD as set.

Source: https://congthuong.vn/dinh-vi-lai-nganh-hang-rau-qua-xuat-khau-379451.html