According to the Import-Export Department (Ministry of Industry and Trade), in all fruit and vegetable products exported in recent years, processed vegetables accounted for a significant proportion. In the first quarter of 2023, this proportion also accounted for one-third of export turnover. The position of the processed fruit and vegetable product line shows the tendency of consumers to gradually accept this product. It is expected that this industry will continue to develop in the second quarter of 2023.
Fruit and vegetable exports are estimated to grow by 10%
With the growth momentum of Vietnam’s fruit and vegetable exports in the first quarter of 2023 estimated at nearly 1 billion USD, up 7% over the same period in 2022, the fruit and vegetable industry gave a good signal for exports, after rice exports in the year 2023.
China continues to hold its position as the largest export market for agricultural products, including vegetables, tubers and fruits, with an export value of 2.4 billion USD (accounting for 21.5% of the market share); followed by the US with 2.04 billion USD (accounting for 18.2%); Japan ranked third with export value of 936 million USD (accounting for 8.4%); 4th is South Korea with an export value of 528 million USD (accounting for 4.7%).
Mr. Dang Phuc Nguyen – General Secretary of the Vietnam Fruit and Vegetable Association (Vinafruit) said: The strong fruit import activity of the Chinese market, many border gates of Vietnam also extended operating hours to 22 hours every day. day. That proves that China’s import demand for fruit is still good, so the export turnover of vegetables and fruits in the second quarter may increase by 10% or even higher. Thus, in the first two quarters of the year, fruit and vegetable export turnover will be equivalent to 2 billion USD. Some items of fresh fruit products are officially exported, such as Vietnamese durian. In the first 3 months of 2023, Vietnamese durian has not yet entered the main season, so it is only moderately exported to this market. Entering April 2023 onwards, durian at the time of the main season, the goods are abundant, starting to meet the orders.
In addition, in addition to the main product durian, plus jackfruit, banana and dragon fruit are the main agricultural products that will bring the export turnover of vegetables and fruits to the market of 1.4 billion people to reach at least 2.5 billion USD. this year, accounting for 62.5% of the country’s total export turnover. It shows that the fruit and vegetable industry has great prospects in this market.
Export value from fruit and vegetable processing is 3-4 times higher
Currently, Vietnam has about 76% of exported fruits and vegetables, which are mainly in fresh or pre-processed form. While the dietary needs of people around the world in general, and in Europe in particular, are leaning towards using processed fruits and vegetables. This is the reason why Vietnam’s fruit and vegetable export turnover accounts for a low proportion.
Talking about the advantages of processed vegetables, Mr. Nguyen Van Thu – General Director of G.C Food Joint Stock Company said: Developing the fruit and vegetable industry in the direction of processing not only helps control prices, but also increases prices. The value of goods is 3-4 times higher than that of fresh goods. In particular, this activity also helps to increase the shelf life of agricultural products, freeing the situation of local oversupply. However, not all fruit-producing enterprises are capable of making processed fruits. Because this is an industry that requires large capital, modern equipment and technology to be able to create competitive products.
Many businesses operating in the field of fruit processing reflect that, at present, only about 30% of businesses have the ability to access bank capital, the rest are small and medium-sized, so access to loans is difficult. not easy, policy mechanism, low level of support.
Faced with this situation, Mr. Nguyen Manh Hung – Chairman of the Board of Directors of Nafoods Joint Stock Company said that the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade need to propose authorities to have a prioritized centralized budget. support businesses with preferential loans to invest in cold storage systems and invest in technological innovation and development of fruit and vegetable processing plants. When investing in factories, the authorities need to manage the planning of planting areas appropriately, avoiding the situation that there are factories without raw materials.
General Secretary of the Vietnam Fruit and Vegetable Association Dang Phuc Nguyen proposed: In the coming time, the Government, ministries and branches should support localities in planning processing zones and having policies to encourage investment; support in capital as well as technology transfer… In particular, it is necessary to support capital, connect farmers and businesses to build an effective and sustainable linkage model in the raw material area.
Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said: In order to promote exports, in addition to focusing on processing technology, it is necessary to continue focusing on restructuring production to raise the level of Vietnamese agricultural products. Along with that, implementing trade promotion programs, especially on digital platforms, e-commerce, applying information technology to promote export and consumption of agricultural products. Effectively deploying trade remedies, handling disputes and lawsuits in international trade, creating favorable conditions for enterprises to export agricultural products.
The demand for fruit and vegetable consumption increased from the international market, including a remarkable growth from the EU countries. Helping Vietnam’s fruit and vegetable processing industry flourish in recent years. Therefore, the Import-Export Department encourages fruit and vegetable enterprises to focus on the segment of processed products, because this will be the trend of the market in the coming time.