How did the Vietnamese fruit "king" win the throne in the Chinese market?

Vietnamese durian is increasingly making its mark in the Chinese market. Judging by the monthly export growth figures, the king of fruits may be crowned king in this market.

Thai durian is increasingly inferior to Vietnamese durian.

According to statistics just announced by the General Department of Customs, durian exports in May reached 450 million USD, up 107% compared to the previous month and 34% compared to the same period last year. Thus, in the first 5 months of the year, the "king" of fruit exports reached 919 million USD, up more than 74% compared to the same period last year.

China is currently the largest durian consumer market of ASEAN countries. According to information from the General Department of Customs, China accounts for more than 93% of Vietnam's total durian export turnover with a turnover of 857.8 million USD, an increase of 78.8% over the same period last year. The General Secretary of the Vietnam Fruit and Vegetable Association estimates that the total export turnover in the first 6 months of the year reached 1.5 billion USD.

Recently, providing statistics on durian imports, the Chinese Customs Administration said that the country imported 582,624 tons of fresh durian in the first 5 months of the year with a value of nearly 2.9 billion USD, an increase of 8.7% in volume and 7.4% in value compared to the same period in 2023.

Notably, once the largest supplier of durian to China, imports from Thailand have now decreased by 2.5% to 2.2 billion USD. Fortunately, imports from Vietnam increased by 61% to 661.1 million USD. With this result, Vietnam continues to rank second in exporting fresh durian to China with a market share of 23% compared to 15% in the same period last year.

Moreover, according to Mr. Dang Phuc Nguyen - General Secretary of the Vietnam Fruit and Vegetable Association, Vietnamese durian is considered to have more advantages than Thai durian in terms of quality, abundant output, and year-round harvest. Especially when in season, it does not compete with Thai durian. At present, China is still increasing its purchase of Vietnamese durian every month.

According to Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade), our country's durian exports to China have many advantages and competitive advantages over other competitors such as fast shipping time and competitive prices. This promises an explosive turnover in the near future.

How did the Vietnamese fruit king win the throne in the Chinese market?

The Vietnam Fruit and Vegetable Association forecasts that this year's fruit and vegetable export turnover could reach 7 - 7.5 billion USD, if frozen durian or fresh coconut are added to the current negotiation agreements between Vietnam and China.

Speaking to VTVTimes reporters, the Deputy Director of the Import-Export Department said that it is expected that this year, Vietnam and China will sign a new protocol on frozen durian exports. This will be a "golden" opportunity for Vietnamese durian to dominate the Chinese market.

In addition, a huge advantage of Vietnamese durian, which has a much greater advantage over its competitors, is the ability to produce durian off-season. This is something that our number one competitor, Thailand, has not been able to do.

According to economic experts, processed products and foods are a very potential industry in China and will create many opportunities for Vietnamese businesses to exploit. Durian is no exception.

On the sidelines of this story, a representative of the Ministry of Industry and Trade shared that, according to a Thai agricultural expert, Thai exporters to China have to bear the cost of transporting 65-70% of the waste oil shell alone (after removing the flesh because only 30-35% of the durian fruit is edible).

Therefore, if we only export the durian flesh to China, we can significantly reduce transportation costs, increase profits and export value. Moreover, according to economic experts, when exporting the entire durian flesh, the opportunity to build a brand and take the "king" throne in the Chinese market for Vietnamese durian is very large. It is important that export enterprises need to invest in processing and preservation technology, fully meeting the import conditions of this market. Even if the quality and product diversity are improved, Vietnamese durian will attract many potential markets in the future.

Regarding this issue, according to Mr. Nguyen, frozen durian exports require higher quality control. With durian meat, there will certainly be many more requirements and criteria to meet. Looking at the fact that some recent shipments have been warned of being contaminated with banned substances, affecting the reputation of Vietnamese goods, businesses themselves need to increase inspection of banned substances right at the garden and packaging facility to ensure that no shipments contaminated with banned substances are exported. "Businesses need to closely monitor the codes of growing areas and packaging facilities, avoiding the purchase of goods from unlicensed places, affecting export activities.

Along with that, durian exporting enterprises also said that, according to market research, the demand for product convenience is increasing, exporting pre-cut or frozen durian meat is suitable for modern consumers. Enterprises are researching towards online sales and online export activities to achieve large output with the highest profits./.

According to the Ministry of Agriculture and Rural Development, Vietnamese durian is currently exported to 22 countries and territories. In addition to fresh durian, frozen durian is a product that businesses are exporting to many countries.

In terms of area, in less than 10 years, Vietnam's durian area has increased nearly 5 times. Currently, the country's durian area has increased from 32,000 hectares in 2015 to more than 150,000 hectares in 2023, corresponding to an increase in durian output from 366,000 tons to more than 1.2 million tons.

According to VTV

Source: https://doanhnghiepvn.vn/kinh-te/lam-the-nao-de-vua-trai-cay-viet-gianh-ngoi-vuong-tai-thi-truong-trung-quoc/20240707055832135