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Blog > Markets > What factors contributing to the preference of Vietnamese fruit among Chinese consumers?
Markets

What factors contributing to the preference of Vietnamese fruit among Chinese consumers?

nhanongen
Last updated: 30/09/2024 3:55 PM
By nhanongen
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Contents
Advantages of product diversityThe momentum generated by policy frameworksThe aspiration of the “Western regions”


(VAN) The fruit industry is expected to continue to expand for many years due to the immense potential of the Northwest and Central Highlands regions and the momentum generated by policies.

Minister Le Minh Hoan participated in the ribbon cutting ceremony to launch the Hung Yen longan season. Photo: Bao Thang.

Minister Le Minh Hoan participated in the ribbon cutting ceremony to launch the Hung Yen longan season. Photo: Bao Thang.

Advantages of product diversity

Fruit exports to China have been steadily increasing in recent years, and it is anticipated that they will surpass USD5 billion by 2024. The billion-person market is home to a variety of products, including durian, dragon fruit, bananas, and mangoes. Despite this, there is still significant development potential in the market, as China’s fruit and vegetable import structure is shifting toward fruits.

Vietnamese fruits are well-received in China due to a variety of factors, according to Nguyen Quoc Manh, Deputy Director of the Department of Crop Production (MARD). The first aspect is the diversity and scale of production. Vietnam’s diverse ecological subregions, which encompass over 15 degrees of latitude, tropical monsoon climate, and varied terrain heights, enable the cultivation of a wide range of fruit varieties, including tropical, subtropical, and temperate fruits.

260 varieties of fruit trees are commonly cultivated throughout the nation, with approximately 30 species currently in existence, according to statistics from the Department of Crop Production. Durian, rambutan, mangosteen, star apple, and jackfruit are among the tropical fruits for which China either has limited production capacity or lacks competitive advantages. The production of numerous fruit varieties on a large commercial scale, ranging from hundreds of thousands to millions of tons annually, is noteworthy. These fruit varieties include bananas, dragon fruit, durian, mango, lychee, longan, pineapple, and passion fruit.

In terms of quality and appearance, numerous Vietnamese fruit varieties are of exceptional quality and have established a recognized brand name. These include the Thanh Ha lychee, Hung Yen longan, golden-flesh longan, green-skinned pomelo, Binh Thuan dragon fruit, DONA and Ri6 durian, Hoa Loc sand mango, Vinh Kim Lo Ren star apple, and Cho Lach mangosteen.

Vietnamese crops also capitalize on advantageous seasonal conditions in addition to their exceptional quality. In addition to the implementation of numerous technological advancements in cultivation and the process of variety selection, the majority of Vietnam’s key products are harvested in staggered seasons, which effectively extends the harvest period. The domestic market and export markets are both adequately supplied with fresh produce. Bananas, pineapples, pomelos, longans, passion fruits, and durians, to name a few, are available year-round, particularly in southern provinces. There are numerous fruit trees in the Southern region that have successfully implemented staggered harvesting on 50% or more of their cultivated area.

Lastly, it is impossible to disregard the geographic proximity to China. Currently, Vietnam has approximately 20 border gates and numerous trails and paths for direct trade with China, according to the Deputy Director of the Department of Crop Production. This is a competitive advantage that Malaysia and other countries with comparable products do not possess. This benefit guarantees the quality and freshness of Vietnamese fruits when they are delivered to Chinese consumers, thereby reducing transportation time and costs.

In recent years, a series of training programs for people on VietGAP farming have been organized by specialized agencies from the central to local levels. Photo: Bao Thang.

In recent years, a series of training programs for people on VietGAP farming have been organized by specialized agencies from the central to local levels. Photo: Bao Thang.

The momentum generated by policy frameworks

The Government and the MARD’s leadership and management, which began with Decision 899 and later Decision 255 on agricultural restructuring, are responsible for the success that has been achieved to date. This emphasizes the identification of essential national products with high economic value and the increase in production value per unit area.

The Department of Crop Production proposed over a decade ago that the Ministry of Agriculture and Rural Development establish a Steering Committee to promote the staggered production of critical fruit commodities in the Southern region. The investment in staggered harvesting of products such as durian, mango, longan, rambutan, and dragon fruit was prioritized to prevent market oversaturation during prime harvest seasons..

MARD has recently continued to implement the Key Fruit Tree Development Plan through 2025 and 2030, which clearly outlines development solutions for 14 key fruit crops. These crops, including durian, dragon fruit, banana, mango, plantain, and more, have a strong export potential to China. Furthermore, the Vegetable and Fruit Processing Industry Development Plan for the years 2021–2030 is introducing fresh momentum to the sector. In 2024, Vietnam has the potential to export fruits and vegetables worth up to USD7 billion. This figure is expected to increase to $8–10 billion by 2030, particularly as the proportion of processed fruits and vegetables reaches 30% or higher.

Deputy Director Nguyen Quoc Manh underscored that the policy framework is facilitating Vietnam’s consistent pursuit of its development trajectory. Naturally, Vietnam must also establish specialized cultivation zones, which include production areas that supply basic materials for processing.

Mr. Manh delineated four objectives to speed up the expansion of value-added products. First, create and cultivate specialized zones for the production of vegetables and fruits that adhere to established standards, with the objective of producing approximately 5–6 million tons by 2030.

Second, each locality should prioritize the development of a few key fruits and vegetables with local advantages, particularly regional specialties, and establish connections with neighboring provinces and cities to form concentrated, large-scale production zones, in accordance with the national vegetable and fruit production development orientation.

Third, encourage the research and development of high-yield, high-quality vegetable and fruit varieties that are resistant to drought, salinity, and pests. Additionally, promote the production of organic vegetables and fruits, implement sustainable intensive farming practices, and apply technical advancements to stagger harvests, thereby mitigating the effects of seasonality.

Lastly, the implementation of digital transformation in fruit and vegetable production should be incremental and based on data platforms for land, crops, environment, and weather. This will improve the quality of the product and increase productivity.

The upcoming fruit festival in Beijing, China is an opportunity for Vietnamese agricultural products to further promote their image. Photo: Bao Thang.

The upcoming fruit festival in Beijing, China is an opportunity for Vietnamese agricultural products to further promote their image. Photo: Bao Thang.

The aspiration of the “Western regions”

The Mekong Delta (Southwestern region) has emerged as the primary fruit-growing region of the nation in recent years. The Northwest and Central Highlands are two additional regions in Vietnam that offer favorable conditions for fruit cultivation in terms of land, climate, and human resources.

The Department of Crop Production has been at the forefront of the development and proposal of a variety of projects, crop structure plans, and cultivation techniques, as well as the organization of production conferences, to enhance fruit production in these two regions, despite the existing challenges regarding infrastructure and investment.

These initiatives encompass specialized initiatives, such as the “Sustainable Fruit Tree Development Plan for the Northwest Provinces through 2030,” which includes the identification and dissemination of new, high-quality commercial varieties that are well-suited for these regions. These varieties include the DONA durian, DONA rambutan, Taiwan 1 passion fruit, Booth 7 avocado, Hass avocado, MD2 pineapple, GL4 mango, and golden longan. The Department also advised and presented the intercropping process of durian, avocado, and pepper trees within robusta coffee plantations to the Ministry of Agriculture and Rural Development, thereby enabling the broader implementation and promotion of fruit tree production in each region. This is particularly noteworthy.

Fruit production in the Northwest and Central Highlands has experienced substantial advancements, including increased production of regionally advantageous fruits and a greater diversification of fruit types, as a result of the MARD’s attention and guidance, as well as investments from local authorities and businesses, and the efforts of farmers.

Fruit-growing areas have increased by over threefold in the past decade in the four Northwestern provinces of Hoa Binh, Son La, Dien Bien, and Lai Chau, from 32,600 hectares in 2014 to 113,200 hectares in 2023. In the same vein, the five Central Highlands provinces have nearly quadrupled their fruit-growing areas, from 32,200 hectares in 2014 to 181,200 hectares in 2023.

Several of these provinces, such as Son La, Daklak, Gia Lai, and Lam Dong, have become significant fruit producers in Vietnam. The production structure of the region is quite diverse, with a variety of fruits that are produced on a large scale and have a higher economic value than those in other regions. These fruits include durian, mango, banana, passion fruit, avocado, longan, and custard apple. The Central Highlands are home to a variety of fruit varieties, including durian, passion fruit, lychee, and longan, which have harvest seasons that are inherently distinct from those of the rest of Vietnam. This diversity of fruit varieties enables the country to supply fresh fruit year-round.

“The Northwest and Central Highlands’ distinctive microclimates and soil conditions serve as the foundation for the establishment of large-scale commercial production.” This not only enhances the export of fresh fruits but also establishes the foundation for investment in the processing industry, thereby ensuring the effective and sustainable development of fruit cultivation in the regions and increasing added value. Mr. Manh also anticipated that it would contribute to the socio-economic advancement of the regions and generate jobs, increase income, and improve livelihoods, thereby contributing to rural development.



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