Fruits and vegetables export is slowing down

In the first 6 months of 2018, fruits and vegetables export gained a good growth rate with a year-over-year increase of 20.3%. However, if comparing with the growth rate of over 44% in the first half of 2017, this growth rate is slowing down.

Fruits and vegetables export of the whole year is expected to reach US$ 4.5-4.7 billion. Photo: Uyen Nhu.

Up over 20%

According to the Department of Agro-product Processing and Marketing (MARD): By the end of June, 2018, fruits and vegetables export was estimated at US$ 2 billion, up 20.3% over the same period in 2017. Notably, the export turnover to major markets was quite good. In particular, the top importer was China with a turnover of US$ 1.2 billion, up over 18% over the same period in 2017; followed by the US market with a turnover of US$ 50.9 million, up 14.6%. In markets such as Japan, South Korea, and Thailand, fruits and vegetables export turnover increased by 8%, 15.4% and 26% respectively.

In the first half of the year, the promotion of litchi export was noticeable when litchi had a good harvest, but has not fallen into depreciation. In the capital of litchi, Bac Giang, from the beginning to the end of the crop, consumption and especially export was good.

According to the latest update to the end of 6th July, 2018, the litchi export to over 30 countries and territories with major importers such as EU (France, Germany, Netherlands ...), Russia, United States, Canada, China, Japan, Korea, Malaysia and Thailand was estimated at 87,400 tons, equal to a value of US$ 153 million. In particular, China is also the main importer of Vietnam’s litchi with a total turnover over US$ 151 million. In terms of price, litchi was sold at a reasonable price, peaking at 35,000-40,000 VND / kg and the average price of the whole crop ranged 16,000 - 18,000 VND / kg.

The representative from Department of Agro-product Processing and Marketing said that the above results were thanks to the strong and active participation of the whole sector and localities as well as the business community.

In the beginning of April, 2018, the Ministry of Agriculture and Rural Development (MARD) has taken the initiative in coordinating with the Industry and trade sector, the key localities of litchi farming to carry out the tasks of caring, harvesting, processing and consumption schedule. This made the litchi consumption of the whole crop gain a positive shift.

In the first six months of 2018, fruit and vegetable export gained a growth rate with a year-over-year increase of 20.3%, but compared with the growth rate of 44% in the first half of 2017, the above growth rate is slowing down. However, according to the Department of Agro-product Processing and Marketing, the bright spot is that domestic supply has good development results. Trade promotion and market development have helped to keep the target of "good harvest and good price”.

The whole year’s export turnover is expected at US$ 4.7 billion

The Vietnam Fruit and Vegetable Association (Vinafruit) forecasts that the fruits and vegetables export for the whole year might grow by 25-30%, with an export value of US$ 4.3-4.5 billion.

Regarding this issue, Mr. Nguyen Van Viet, Director of Planning Department (MARD) has given a better forecast that the fruits and vegetables export might earn about US$ 4.5-4.7 billion.

According to Mr. Viet, from now until the end of the year, with the production and export of agricultural products in general and vegetables and fruits in particular, MARD has continued to transform the ineffective rice area into other more marketable and profitable crops such as fruits, vegetables and flowers toward high technology and into products meeting the market demand. In addition, the Ministry will continue to enhance the use of high quality seedlings and varieties suitable with the ecological region in combination with good intensive farming and science and technology application and mechanization to reduce production costs, improve productivity, quality, value and competitiveness of each product.

Around the story of promoting sustainable agricultural products in general, vegetables and fruits in particular, Mr. Nguyen Quoc Toan, acting Director of the Department of Agro-product Processing and Marketing said that if agricultural raw materials export are maintained, the added value would be low. Therefore, in the coming time, it is important to step up the deep processing. Particularly, “Fruits such as litchi, the deep process is required,” Mr. Toan stressed. On the market aspect, he noted that the key is still the product quality, which must meet the market standards.

Agreeing with the view of Mr. Toan, some experts said that in the coming time, Vietnamese fruits and vegetables export is expected to be able to compete with the same products in the traditional markets. In order to boost the export, the fruits and vegetables sector should continue to review the planning to stabilize supply, strengthen linkages and attract more enterprises. In terms of enterprises, the link production to meet the need, and sticking to the standards, quality requirements, and food safety of export markets should be promoted. Especially, enterprises in the fruits and vegetables sector should continue to attach importance to the development and technology application of preservation of post-harvest fruit and deep processing to maintain and promote the export to high-end markets such as the USA, Australia, Japan and South Korea.

Development of processing industry is one of the key targets set by MARD in the second half of the year. Mr. Nguyen Van Viet said that MARD will focus on implementing tasks and solutions to restructure the processing industry, preserve and reduce post-harvest losses; continue to accelerate the implementation of policies to support and encourage the development of deep-processing industry and instant product processing to raise added value; at the same time, supporting and facilitating large scale processing plants of fruits and vegetables and livestock products, applying modern technology in operation in 2018 ....

According to the MARD: together with the growth of fruits and vegetables export, the fruits and vegetables import value in June 2018 was estimated at US$ 152 million, bringing the total import value in the first 6 months of the year to US$ 754 million, up 18.5% against the same period in 2017. The main exporters are still Thailand (45.7% of imports) and China (9.1%).