Fruit and vegetable exports brought in US$340 million in November 2022, according to the Ministry of Agriculture and Rural Development. In 11 months, the export turnover of vegetables and fruits reached US$3.09 billion, down 4.9% from the same period in 2021.

THE MOST IMPORTANT EXPORT MARKET IS STILL CHINA

In the first 11 months of 2022, exports of vegetables and fruits to many markets showed good growth, including: the US reached $240 million, up 18% over the same period in 2021; the Thai market reached US$169 million, up 26%; to Japan reached USD 155 million, up 6%…

Fruit and vegetable exports to China fell sharply in the first half of 2022 due to the impact of China’s zero-Covid policy, which blocked openings at the border to prevent the passage of goods. Fruit and vegetable exports to China have been growing again since September 2022, with sales increasing steadily over the past 3 months compared to the same period last year.

The prospect of exporting fruits and vegetables to the Chinese market shows many positive signs for some fruits like durian, which has been officially exported to China since September 2022.

After the durian, the possibility of exporting Vietnam’s bananas to China opened up when the Protocol on the Export of Fresh Bananas was signed during Secretary-General Nguyen Phu Trong’s official visit to China. Every year, China imports more than USD 15 billion in fruit and vegetable products. Many companies expect that with the opening of a series of Vietnamese fruits exported to China, it will be the driving force to promote fruit exports in 2023.

According to the Vietnam Fruit and Vegetable Association, the Chinese fruit and vegetable consumption market will increase at the end of the year and the Lunar New Year. Annual export turnover to the Chinese market accounts for 50%. Chinese culture is quite similar to Vietnamese, so there will be high demand for vegetables and fruits for Tet to serve the spiritual culture.

Mr. Le Thanh Hoa, deputy director of the Department of Agricultural Products Processing and Market Development (Ministry of Agriculture and Rural Development), said domestic and export market demand for fruit is quite strong at the end of the year.

Currently, the export has to be assigned to the growing area and the packaging plant; Each growing area is assigned the output and the area. If this is done wrong or the growing area code is borrowed, the packing base code will greatly affect the export. Besides, the strong shift from unofficial to official export for the Chinese market will help promote the positive growth of the fruit and vegetable industry.

IMPORTS RISE BY NEARLY 39%

Contrasting with the not-so-brilliant situation of fruit and vegetable exports, the import value of vegetables and fruits is estimated at 200 million USD in November 2022, which brings the total value of imported vegetables and fruits in 11 months of 2022 to 0.87 million USD USD billion, up 38.9% over the same period in 2021.

China is still Vietnam’s largest customer both in terms of imports and exports. In 11 months, imports of vegetables and fruits from China amounted to USD 742 million, a sharp increase of 83.3% over the same period last year. China’s fruit and vegetable market share also rose to 39.7% this year from 29% last year.

The U.S. market ranked second at $254 million, up 13.6% year over year, and its market share fell to 16.7% this year from 21% last year. Australia ranked third with a value of $157 million in 11 months, up 17% year-on-year.

In 11 months, Vietnam also spent USD 122 million on importing vegetables and fruits from New Zealand; USD 101 million to import vegetables from Myanmar; USD 62 million for importing vegetables and fruits from South Africa and USD 45 million for importing vegetables and fruits from Thailand… The two countries with a strong increase in fruit and vegetable export turnover to Vietnam are South Africa with an increase of almost 70% and New Zealand up to about 70% nearly 25% compared to the same period last year.

The situation of fruit and vegetable imports increased sharply while exports fell, leading to the sector’s trade surplus being pushed down to just USD 1.22 billion. While vegetable and fruit exports reached US$3.52 billion in 2021, import of vegetables and fruit was US$1.45 billion, with a trade surplus of more than US$2 billion.

The surge in imports, while exports are struggling, has put many domestic fruit and vegetable products under pressure to lower their selling prices, leaving fruit growers’ profits not as high as in previous years.

The world market for processed fruits and vegetables is forecast to reach around USD 392 billion by 2025. Vietnam currently mainly exports fresh fruit, which is difficult to transport over long distances due to its short shelf life. .

Therefore, the Ministry of Agriculture and Rural Development suggested that the companies should focus on the processed products segment as this is the trend of the market in the coming period. Especially in the current context, companies must be persistent to maintain the market and always ensure the quality and safety of food, as it is a crucial factor for us to maintain the market.