(VAN) Vina T&T Group’s representative recently emphasized the opportunities and challenges that Vietnam’s coconut industry is encountering as it strives to capitalize on the lucrative Chinese market.
Mr. Nguyen Phong Phu, Technical Director of Vina T&T Group, emphasized the pioneering role of the enterprise and proposed practical solutions to exploit the potential of Vietnam’s coconut export market.
Mr. Nguyen Phong Phu, Technical Director of Vina T&T Group, emphasized the critical role of enterprises in leveraging this potential and proposed strategic solutions to increase exports during the Forum on Connecting Production and Consumption of Coconut Products, which was jointly organized by the Department of Quality Processing and Market Development under MARD and Vietnam Agriculture News.
Vina T&T Group has established itself as a leader in the export of coconuts as a result of its production unit codes and packaging facility codes, which adhere to China’s rigorous standards. The ASEAN-China Free Trade Agreement, which reduces export tariffs and combines Vietnam’s geographical proximity to China with a high demand for coconuts, provides a substantial advantage, according to Mr. Phu. In particular, the Mekong Delta provinces, including Bến Tre, have an abundance of coconut supplies that can satisfy the needs of key markets, including the United States, Australia, Canada, and China.
Vietnam has a substantial opportunity to capitalize on China’s annual coconut consumption of 4 billion units, which includes 2.6 billion raw coconuts. The Ministry of Agriculture and Rural Development (MARD) of Vietnam and the General Administration of Customs of China have recently signed a protocol permitting fresh coconuts’ official export. This development has further strengthened Vietnam’s position in the global coconut market.
Despite these prospects, Mr. Phu recognized substantial obstacles. Import standards in China are increasing, particularly in the areas of food safety, quarantine protocols, and packaging regulations. This presents significant challenges. The sustainability of the industry is also at risk due to fraudulent practices in coconut procurement and the escalating competition.
Processing and packaging fresh coconut for export at Vina T&T Group.
Vina T&T Group has suggested practical solutions to address these challenges, including the following: investing heavily in marketing activities and branding to strengthen the international presence of Vietnamese coconuts; expanding the range of coconut-based products, such as coconut candy and cosmetics, to enhance added value; reducing reliance on the Chinese market by developing other export destinations; collaborating with management agencies to ensure robust monitoring of production and packaging codes to prevent fraud and protect national prestige.
At present, coconut cultivation occupies nearly 200,000 hectares in Vietnam. Expectations are that the industry will surpass USD 1 billion in 2024, following its export turnover of over USD 900 million in 2023. Strategic initiatives, such as the integration of tourism and One Commune One Product (OCOP) initiatives, the adoption of Good Agricultural Practices (GAP), and production restructuring, have established a strong foundation for sustainable growth.
Coconut brand of packaged fresh coconut of Vina T&T Group.
Vina T&T Group reiterated its leadership in the global market by integrating production with consumption at the forum. Not only do these endeavors benefit enterprises, but they also contribute to the sustainable development of Vietnam’s agricultural sector as a whole.
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