Exporting fruits and vegetables to the Chinese market in 2024: Wide open opportunities

Opening the market for many types of Vietnamese fruits

In late 2023, the Ministry of Agriculture and Rural Development of Vietnam and the General Administration of Customs of China signed a Protocol on phytosanitary requirements for fresh watermelon exported from Vietnam to China.

Speaking to reporters from the Industry and Trade Newspaper, Mr. Dang Phuc Nguyen - General Secretary of the Vietnam Fruit and Vegetable Association (Vinafruit) - said that signing the Protocol on official watermelon exports to China is an important step that opens up great opportunities for businesses and watermelon growers in Vietnam.

Quang Ngai farmers harvest watermelon. Photo: VNA

When the Protocol is implemented, watermelon exports could double next year. However, the most important thing is that the inspection of goods at the border will be much faster. Chinese customs will reduce the frequency of sampling and inspection to only 2-3%, so there will no longer be a scene of watermelon congestion during the peak season like Tet every year. In particular, the export price of this item will also be more stable, helping watermelon growers increase their income.

More than a year ago, on November 1, 2022, the Ministry of Agriculture and Rural Development of Vietnam and the Chinese Customs signed a Protocol on the export of fresh bananas from Vietnam to China. Information from the Import and Export Department (Ministry of Industry and Trade) shows that the signing of the Protocol has brought significant growth to Vietnamese bananas in the Chinese market. Vietnam has become the second largest banana supplier to China.

Vietnam is the second largest banana supplier to China.

According to the Ministry of Agriculture and Rural Development, the Chinese market will lead the import turnover of Vietnamese agricultural products in 2023, with a figure of 12.2 billion USD, accounting for 23%.

In terms of fruits and vegetables, 2023 is the year that witnessed the "change of throne" in the fruit and vegetable industry. Surpassing dragon fruit, durian has become the product with the highest export turnover.

Mr. Dang Phuc Nguyen forecasts that durian export turnover in 2023 will reach about 2.2 - 2.3 billion USD, 5 times higher than in 2022 and 10 times higher than in 2021.

Being in the Top of the largest durian exporting enterprises, Chanh Thu Fruit Import-Export Group Joint Stock Company also had a quite successful year with the Chinese market.

Ms. Ngo Tuong Vy - General Director of Chanh Thu Fruit Import-Export Corporation - said that durian is the company's main export item in 2023, contributing to doubling revenue in 2022. Record revenue and great contribution to the growth of the fruit and vegetable industry are undeniable things in the durian industry this year.

Ms. Ngo Tuong Vy commented that the durian industry in 2023 "gains more than losses", which proves through export turnover that many businesses have more or less built their brands with partners.

Vina T&T Group Import-Export Company specializes in exporting fruits to the US, China, and Japan. Speaking to reporters of Industry and Trade Newspaper, Mr. Nguyen Dinh Tung - General Director of Vina T&T Group Import-Export Company said that because of exporting fresh fruits, the company's orders are year-round. In 2023, the company will have new markets such as grapefruit in the US and New Zealand markets. The US market will also reopen for fresh coconuts.

In particular, Vietnam signed a protocol with China on durian, helping durian exports to this market grow dramatically. Therefore, in 2023, according to the company's calculations, Vina T&T's revenue growth will reach about 40% compared to the same period last year. The company also expects that revenue growth in 2024 will reach about 20% compared to 2023.

Currently, Vina T&T also has plans to expand its market share in China, because according to Mr. Tung, if exported in large quantities, the profits will be high, even Vietnamese farmers will become rich and benefit the most from this market.

Maintain market, enhance brand

With huge demand from a market of 1.4 billion people, businesses believe that Vietnam's durian industry still has a lot of potential in China, with a market share of 40% in the next 5 years. In China, Vietnamese durian has received quite positive feedback from partners.

Negotiating for durian to be officially exported to China is not a matter of a day or two. Therefore, businesses need to cherish this opportunity and maintain Vietnam's reputation.

However, when the market signal is good, there is a lot of competition between businesses, enterprises and traders to buy and sell, which creates a negative view of the Vietnamese durian industry.

Looking back at the durian industry's journey in 2023, Mr. Dang Phuc Nguyen also saw that the link between farmers and businesses is still loose and easily broken, causing damage to businesses.

A representative of Vinafruit said that negotiating for durian to be officially exported to China is not a matter of a day or two. Therefore, businesses need to cherish this opportunity and maintain Vietnam's reputation.

If China discovers durians that are young, wormy, and do not meet regulations, they will be warned and destroyed, and even stopped from buying. At that time, where will 95% of Vietnam's exported durians go?

Look at Chile and Thailand, which can survive in China by maintaining their reputation and product quality. If we do not improve ourselves, the fruit and vegetable industry may fall behind.

To date, Vietnam has 14 official agricultural products exported to China, including: bird's nest and bird's nest products, sweet potatoes, dragon fruit, longan, rambutan, mango, jackfruit, watermelon, banana, mangosteen, black jelly, lychee, passion fruit and durian.

Currently, specialized agencies of the Ministry of Agriculture and Rural Development are coordinating with the General Administration of Customs of China (GACC) to urgently complete the dossier to open the market for 6 products: citrus fruits (grapefruit, oranges, tangerines, etc.), coconuts, frozen durians, chili peppers, medicinal herbs and wild-caught seafood. When these 6 products are officially exported, it will create room for billions of dollars in revenue growth for the agricultural sector.

Although China has signed and is about to sign more Protocols for many Vietnamese agricultural products, the challenge for domestic businesses and farmers is to comply with growing areas, packaging facilities, food hygiene and safety, plant quarantine, and meet all technical barriers... If just one of these standards is not met, the goods will not be cleared through customs, which will be a minus point for Vietnamese goods.

Mr. Ngo Xuan Nam - Deputy Director of the Vietnam SPS Office (Ministry of Agriculture and Rural Development) - emphasized that only well-organized production can go the long way, not only to China, but to many markets around the world.

To maintain the reputation and market for Vietnamese exported fruits, the leaders of the Ministry of Agriculture and Rural Development said they have directed specialized departments to monitor the codes after growing areas and the codes of packaging facilities to ensure that they meet the requirements on plant quarantine as well as food safety stipulated in the Protocols.

Unblocking and maintaining the market will help Vietnamese agricultural products in general, and Vietnamese vegetables and fruits in particular, gain a firm foothold in this billion-people market.

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