Vietnamese durian threatens Thai durian's top position in China

The transportation advantage makes Vietnamese durian increasingly increase its "market share" in China.

According to the South China Morning Post, the price of durian sold in China - the world's largest consumer market for the king of fruits - dropped sharply last May, when Vietnam surpassed Thailand in the fierce competition for durian exports.

On the online shopping platform Pupu, the price of a 6kg durian has dropped from 279 yuan to 179-209 yuan (VND980,000 to VND627,000 - VND733,000).

Zhao Yu, a 37-year-old financial expert living in Shanghai, said that at her regular store where she buys durian, the price of 1kg of durian has dropped from 56 yuan to 48 yuan, (VND 193,000 to VND 168,000). This price, of course, does not affect her decision to buy it twice a month too much.

“When there is a lot of durian, the price will drop. The more durian piles up, the more you will see it,” Zhao said.

In China, the competition for market share in the durian supply sector has become a battle between two major rivals from Southeast Asia, Vietnam and Thailand. China’s demand for durian is so great that the country has to constantly import durian from third parties due to its small domestic production. Durian is popular among people here, even used as a wedding gift.

According to the General Administration of Customs of China, in April 2024, the import price of durian from Thailand was 5.8 USD/kg (147,000 VND), slightly higher than the average of 5.38 USD/kg (137,000 VND). Meanwhile, Vietnamese durian was imported at 4.22 USD/kg (107,000 VND).

International media reported that the severe heat in Thailand in April and May reduced the country's durian harvest, causing the fruit to crack or dry out inside.

A fruit importer in Zhejiang said that some batches of durian from Thailand were “overheated”, and were therefore priced below market prices.

Data from Chinese customs also shows that in the first four months of the year, Thai durian exports to China lost 49% of their value compared to the same period last year. However, Thailand still holds a 66% market share of durian exports in the Chinese market.

In contrast to Thai durian, Vietnamese durian imports into China are increasing sharply. In the first 4 months of 2024, Vietnamese durian imports into China reached 79.3 thousand tons, worth 369.8 million USD, up 91.% in volume and 81.9% in value over the same period in 2023.

The proportion of Vietnamese durian in the total amount of durian imported into China reached 39.2%, a sharp increase compared to 13.3% in the same period in 2023. Thereby, helping Vietnam maintain its position as the second largest durian supplier to the Chinese market, and "nibble" at the market share from Thailand, according to the South China Morning Post.

A Thai consultant told the Bangkok Post that even ignoring temperature fluctuations, Vietnam is benefiting more than Thailand thanks to lower production costs, especially transportation costs by exporting goods by road.

Mr. Aat Pisanwanich, consultant of Smart Research Consulting Company Thailand, commented that Vietnam will step in to capture the market. “If the Thai government does not intervene, Thai durian production will decrease by 53% in the next 5 years,” he added.

In another development, on June 11, Nikkei Asia reported that Thailand is accelerating the connection of its national railway lines with the Laos-China railway network. The Thai-Laos railway is expected to be operational by the end of July, opening up opportunities for faster transportation of goods such as food, seasonal products and other perishable goods, especially durian.

Vietnam is also actively promoting the signing of a protocol on exporting frozen durian to China, which may be completed in the third quarter of 2024. At that time, Vietnam's durian export value this year will increase by at least 200 - 300 million USD, according to Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association.

Nhung Bui

Source : https://baodautu.vn/sau-rieng-viet-de-doa-vi-the-top-1-cua-sau-rieng-thai-lan-tai-trung-quoc-d217503.html