Vietnam’s fruit and vegetables exports may rake in US$$4 billion in throughout 2018 according to experts, fulfilling the target previously set by the sector.
During the first nine months of 2018, exports of fruit and vegetables are projected to grow 17.1% to US$3.1 billion against the same period last year with farm production showing signs of impressive growth.
The export value of fruit and vegetable products in September alone is estimated to be at US$380 million, bringing the country’s total export value up to US$3.1 billion, a 17.1% increase compared to last year’s corresponding period.
According to Tien Giang Vegetables and Fruits Joint Stock Company, Vietnam earned US$3.1 billion from fruit and vegetable exports, averaging over US$1 billion for each quarter.
With an increasing demand for fruit and vegetables in foreign markets during the fourth quarter, the country’s fruit and vegetable exports are likely to push earnings to US$4 billion this year.
This year alone the fruit market has seen a rise in both prices and supply sources, fuelled by favourable weather, especially for such fruit as lychees, longans, dragon fruit, avocados, and durian.
The market for vegetables however remained stable despite some periods affected by fluctuations in sales.
China is the largest consumer of Vietnam’s fruit and vegetables, accounting for 74.1% of the total market share, with revenue reaching nearly US$2 billion, up 11.6% in value against the same period last year.
Strong growth was reported in exports to Thailand, Australia the US, and the Republic of Korea.
Despite being the largest market of Vietnam’s farm produce, only eight types of fruit are shipped to China through official channels, including dragon fruit, water melon, lychee, longan, banana, mango, jackfruit and rambutan.
Despite Vietnam’s strong exports to China, Thailand exports up to 40 different types of fruit to the Chinese market, a five-fold increase compared to Vietnam. Cambodia has also successfully negotiated the export of six kinds of fruit to China.
At present, up to 60% of Vietnam’s farm produce has penetrated the Chinese market via unofficial channels, leading to risks in payment and quality. This is fueled by the difficulties Vietnamese businesses are encountering when trying to export goods to China through official channels.
Business representatives have previously encouraged the governments of Vietnam and China to negotiate increasing the types of farm produce Vietnam can export to China.