With the US and China opening up simultaneously, Vietnamese coconuts are full of opportunities to increase their position and soon join the billion-dollar export club.
"The big guy" opens the door
At the end of July 2023, a delegation of state management officials and the Vietnam Coconut Association had a working trip to China. This is one of the important preparatory steps for this billion-people market to grant a passport for Vietnamese coconuts to go further on the journey to conquer large markets. Immediately after that visit, a detailed schedule for opening was also approved: On August 14, a Chinese customs delegation will visit Vietnam to conduct a field inspection, evaluate product capacity, processing facilities... across the country.
In September 2023, it is expected that Vietnamese coconuts will be included in the list for the two sides to sign the Protocol, officially exporting coconuts to the world's second most populous market. Currently, the Plant Protection Department (Ministry of Agriculture and Rural Development) has sent an official dispatch to localities producing and processing coconuts to prepare documents for field inspections and prepare all conditions to participate in online inspections as required by the General Administration of Customs of China.
Vietnam's coconut industry is moving towards the export target of 1 billion USD.
QUANG THUAN
At the same time, the US Animal and Plant Health Inspection Service (APHIS) officially sent a dispatch to the Plant Protection Department, informing Vietnamese producers that they can begin exporting coconut shells to the US "immediately". Since APHIS has classified partially dehulled coconuts as processed products, the only phytosanitary requirements for shipments will be at US ports of entry. In addition, APHIS said it has notified US Customs and Border Protection to avoid any delays in shipments at US ports of entry. Thus, Vietnamese coconuts imported into the US can be in the form of completely dehulled coconuts or young coconuts with at least 75% (3/4) of the outer green shell removed.
Talking to Thanh Nien reporters about the current coconut production and export industry in Vietnam, Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, commented: "Coconut is a traditional product of Vietnam that brings great value and is the livelihood of many farmers across the country. Vietnamese coconuts are considered by consuming countries to be of higher quality, sweeter and whiter than competitors in the region. However, in 2019, many large markets such as the US and China suddenly changed their policies. For example, China tightened informal imports, Vietnamese coconuts were not included in the list of official imports, so they lost their output. Meanwhile, the US market also had many changes that made fresh coconuts no longer exportable. Domestic coconut prices fell, causing coconut farmers to suffer, many places neglected care... Currently, the two largest markets, China and the US, have reopened, this is very good news, bringing a bright future for coconut exports and improving the lives of farmers".
Where does $1 billion come from?
According to the Vietnam Fruit and Vegetable Association, the export turnover of coconut and coconut products in 2022 is about 250 million USD, of which fresh coconut accounts for only about 40%, the rest are deeply processed products. However, these are only items used in food and edible ingredients. According to recent statistics from the Vietnam Coconut Association, the export turnover of coconut products reached 900 million USD last year.
Mr. Cao Ba Dang Khoa, Acting Secretary General of the Vietnam Coconut Association, informed: "From only planting, exploiting and processing coconut products in the traditional way, in recent years, following the increasingly strict demands of export markets, many enterprises have invested in automated, closed production lines to produce products that meet world standards such as canned and boxed coconut water, canned coconut milk, coconut candy ... Currently, the whole country has more than 90 enterprises exporting coconut products, of which 42 enterprises have exported deeply processed products. Coconut enterprises not only produce coconut but also exploit raw materials from coconut, serving the food, medical and cosmetic industries with more than 200 products related to coconut trees. Typically, pure coconut oil is a high-value product that is very popular with consumers due to the trend of consuming natural, healthy vegan foods with low calories and high nutritional value, reducing the risk of cardiovascular disease.
Along with that, high-end cosmetic products using coconut oil as raw materials such as shampoo, skin cream, lipstick, eyelash brush, makeup remover, etc. also have great consumption potential. In particular, coconut trunks have great potential to produce high-value coconut wood products. In general, the export turnover of deeply processed coconut products and raw materials such as coconut milk powder, desiccated coconut, etc. of Vietnam has continuously increased in recent years, reaching the 4th position in Asia. Statistics show that the export value of coconut and coconut products in 2022 reached over 900 million USD. This year, due to the impact of the general situation, the export value of coconut decreased by about 32% compared to the same period in 2022, reaching about 215 million USD. However, in the long term, the export potential of the coconut industry is still very large and will soon reach the turnover of 1 billion USD".
Mr. Tran Anh Tuan, Chairman of Ben Tre Coconut Association, also commented: "The strong investment of enterprises in coconut processing activities has helped the coconut industry have more and more high value-added products, meeting many quality standards of demanding import markets. Thanks to that, the export value of the coconut industry is constantly increasing, penetrating into European and North American markets... In 2022 alone, the export value of coconut and coconut products from Ben Tre reached 420 million USD, an increase of 20% compared to 2021. This year, despite the general market situation, the export of the coconut industry is still relatively stable and is forecast to reach the same level or increase slightly compared to 2022. Of which, the 5 main products accounting for 80% of Ben Tre coconut export turnover are coconut milk, desiccated coconut, canned coconut water, activated carbon and coconut fiber. In the coming time, the development prospects of the coconut industry still very large, especially when China and the US reopen to Vietnamese coconuts".
Coconut products have a great opportunity to expand their export markets when they are granted a passport by the US and China. Although it is difficult to surpass durian due to limited raw material areas, coconut products can completely catch up with bananas with a turnover of 600 - 700 million USD/year. This is only for fresh coconuts and edible processed products, but if we include handicrafts and other coconut by-products, the turnover will be much higher.
Mr. Dang Phuc Nguyen , General Secretary of Vietnam Fruit and Vegetable Association
The simultaneous opening of the two major consumer markets, the US and China, will bring great benefits to the Vietnamese coconut industry, especially when other markets will also respond when Vietnam meets all the criteria for quality and production processes. In my estimation, the export turnover of green coconut and fire coconut (for water) will increase even more and contribute up to 30% to the total export turnover of the coconut industry. Aiming for the export turnover target of 1 billion USD, the Vietnam Coconut Association is implementing a plan to build a brand for the coconut industry, affirming the brand of coconut products in the market. Along with that, many enterprises and localities have cooperated with farmers to invest in building organic standard raw material areas in Ben Tre, Tra Vinh, Tien Giang, etc., moving towards tracing the origin of products, protecting the brand of coconut products in the domestic and foreign markets.
Mr. Cao Ba Dang Khoa , Acting Secretary General of Vietnam Coconut Association
Thanhnien.vn
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