Processed fruit and vegetable exports could reach 1.2 billion USD

With positive growth momentum, processed fruit and vegetable exports are forecast to reach 1.2 billion USD this year, up 10-15% over the same period last year.

According to the Vietnam Fruit and Vegetable Association, in nearly 6 months, fruit and vegetable exports reached 2.8 billion USD, an increase of more than 63% over the same period and nearly equal to the export turnover of last year. In addition to the large contribution from fresh fruit, processed fruit and vegetables are also actively contributing 30% to the export proportion of this industry.

According to Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, in the first four months of the year, processed fruit and vegetable exports reached more than 356 million USD, up 23% over the same period last year. There are no specific statistics for May and June, but the growth rate is stronger than in the first quarter. "With the current good growth momentum, by the end of the year, processed fruit and vegetable exports could reach 1.2 billion USD, up 10-15% over the same period last year," he predicted.

Canned fruit processing factory in Can Tho. Photo: Linh Dan — Canned fruit processing factory in Can Tho . Photo: *Linh Dan*

For many years, Vietnam’s fresh fruits and vegetables have been exported mainly to China, accounting for 60% of the market share. Meanwhile, processed fruits and vegetables have grown rapidly in the US, EU and Japanese markets.

"This is a good signal to help the Vietnamese fruit and vegetable industry create more advantages in the world market and reduce dependence on China," said Mr. Nguyen.

In the past six months, canned fruit products and bottled juices with a shelf life of 1-2 years continued to be purchased in large quantities in the US, Japan and Europe. According to the US International Trade Commission, over the past three years, the export value of processed fruits and vegetables from Vietnam to this market has increased by 30-45% each year. Similarly, in the EU market, processed fruits and vegetables exported from Vietnam have also increased by 10-20%.

As a leading export enterprise - Ms. Nguyen Thi Minh Nguyet - Chairwoman of the Board of Directors and General Director of Westfood Export Food Processing Joint Stock Company, said that in the first 5 months of the year, the company's processed fruit and vegetable exports grew well, of which the European market increased by 22% compared to the same period last year.

According to Ms. Nguyet, this year, processed fruit and vegetable exports will increase dramatically when China reopens. Important markets such as South Korea, Japan, the Netherlands, and the EU will increase purchases.

"We are gradually becoming self-sufficient in raw material production areas that meet Global GAP standards to meet the demanding standards of global people. The company currently has 140 hectares of MD2 pineapple in Hau Giang , of which 30% are Global Gap certified. The goal by 2030 is for the company to reach a scale of 1,000 hectares, 50% of which meet Global GAP standards," said Ms. Nguyet. In addition, this year the company will invest in a European-standard processing factory in Hau Giang with a capacity of 30,000 tons per year on an area of 70,000 m2.

Although exports are quite favorable, Ms. Nguyet said that processing enterprises still face many challenges related to production structure, high input material prices. The development of raw material areas for processed fruit and vegetable production is still fragmented and has not received much support in planning. In addition, the consumption of this product group in the EU and US markets has not met expectations due to the impact of the Russia-Ukraine conflict.

According to the Ministry of Agriculture and Rural Development, the annual fruit and vegetable harvest in Vietnam reaches over 31 million tons, but only 4.5 million tons are processed, accounting for 14% of the total fruit and vegetable output of the country.

In addition, fruit processing and preservation facilities are still on a micro-scale, household scale, and these products are difficult to meet the quality requirements for export. This causes the situation of "good harvest, low price" to occur frequently and the export turnover of fruits and vegetables is not commensurate with Vietnam's available potential.

Mr. Nguyen believes that the world is leaning towards using processed fruits and vegetables. Therefore, if we know how to take advantage and create the right direction, Vietnamese fruit and vegetable exports will grow strongly in the future. "The government and ministries and sectors need to support localities in planning processing zones, providing capital support as well as technology transfer," he suggested.

In addition, according to him, policymakers need to issue regulations to support production and processing; connect farmers and businesses to build effective linkage models; strengthen management of growing areas and traceability.

Thi Ha

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