Vietnam’s fruits in logistics value chain

(VLR) (Vietnam Logistics Review) Vietnam’s fruits have currently met criterion of food safety and quality management from demanding importers and have been available in 40 countries and regions worldwide. The matter is how to have larger markets and how to have stable positions for Vietnamese fruits in consuming markets worldwide.

(Vietnam Logistics Review) Vietnam’s fruits have currently met criterion of food safety and quality management from demanding importers and have been available in 40 countries and regions worldwide. The matter is how to have larger markets and how to have stable positions for Vietnamese fruits in consuming markets worldwide.

Protecting “home ground” market and going abroad

Although imported fruits have rather high price, many consumers chose them as presents or for display in Tet for its attractive appearance and colors. Imported fruit market had an early start before Tet with fruits from Japan, South Korea and NewZealand…

The fact shows two things: a part of Vietnamese people has had higher income- they become richer and people have paid more attention to life quality: they are interested in good new fruits and vegetable with good quality and safety standards.

The fact that there has been an increase in imported fruits is not an obstacle for local fruit producers, but a driving force for better production: making better products to compete with imported products right in “home ground” markets- local consumers are treated as fairly as consumers worldwide were.

Farmers with inquiring mind are the main factor for competitions. They have to find what consumers need in markets to offer right products.

Foreign fruit coming to Vietnam’s market is unavoidable. Economic experts said it is the must-have in time of integration. Consumers have more choice and producers can have a better recognition on current consuming trends.

This is a starting story for administrators- those responsible for Vietnam agriculture. With the number of fruits and vegetables imported from the U.S, China, South Korea, Australia and Thailand…, it is obvious that foreign fruits are coming to Vietnam market in large number. However, they are for consumers with rather high income only.

It is obvious that the number of fruits imported to Vietnam was higher than that of previous years. However, foreign fruit is unable to change local interest, it is a catalyst to boost up development of local fruits and vegetable sector: local fruits quality is maintained and many retail systems have chosen them for delivery.

It is so delightful when Vietnam’s fruit has made impressive achievements: in 2016, the sales reached USD 2,548bn, an average increase of 1.25 times pa in the period of 2003-2016. Value of exported fruits and vegetables in 2017 reached USD 3.16bn, an increase of 43% compared to that of the year 2016. It is obvious Vietnam’s fruits is qualified enough to be exported and to meet the world consuming demands. Evaluations from Vietnam Fruit and Vegetable Association showed that Vietnam’s fruits met criterions of food safety and quality management of demanding markets. Vietnam’s fruits and vegetables have been available in over 40 countries and regions worldwide, many demanding markets as the U.S, Japan, Korea, Australia, and New Zealand agreed to import key exported Vietnam’s fruits. The first star apple consignment to the U.S market at the end of 2017 is a proof that Vietnam fruit producers have met demands from foreign consumers.

Seizing development opportunities

According to the Ministry of Agriculture and Rural Development fruit and vegetable export turnover increases over 20% pa, the target is to reach over USD 4.5bn in 2020 (an increase of over 80% compared to that of 2016), in which fruit products account for USD 3.6bn (> 80%). It is expected in 2030, fruit and vegetable export reaches over USD 7bn, in which export values of various fruits reached over USD 6bn, maintaining the balance between import and export of over USD 1.5bn. These estimated numbers are feasible.

According to the UN’s Food and Agriculture Organization, while the consuming demand for fruits averagely increase 3.6% pa; the supply is 2.8% only. This is a potential demand for countries with agricultural strength. Our country is among those benefit from fruit export, especially thanks to newly signed trade agreements.

Many optimists said fruit export would soon surpass rice. Time will be shorter if having good market approaches and good production organization. With origin traceable, Vietnam fruit will not be available in 40 countries only: Vietnam has many fruits that other countries do not have, especially with those from the South Western- a rich land with fruitful gardens.

In Tien Giang province, value of fruit trees has been in the increase for the last 6 years. The area for durian trees is over 9,000ha. Currently, the province is interested in mechanism of a concentrated material area. The Mekong Delta is the main area for fruit trees, accounting for 38% of the country area. In the group of 10 main fruits: dragon fruit, durian, bananas, pineapple, mango, orange, grapefruit, litchi, longan and rambutan, dragon fruit had an increase of 23.8% in area and 17.3% in quantity. Durian comes next with 17.6% increase in area and 44.2% in quantity.

Farmers with inquiring mind are the main factor for competitions. They have to find what consumers need in markets to offer right products, not having to wait for “rescue” and “assisting consumption” when goods is redundant.

The Government should facilitate cooperation among enterprises and producers, and offer suitable mechanism that benefits producers, that is, to put Vietnam’s fruit in a logistics value chain to bring them to consumers. Currently, Australia is one of the countries having strictest quarantine principles. Able to come into Australia market is a test to Vietnam fruit export. In the U.S market, beside regulations on food safety, there are competitions from the same tropical fruits from Caribbean countries

Enterprises know longan imported to the U.S market should follow guiding progress from its functional organizations. Moreover, there are strict standards from the U.S inspection system as irradiation treatment and safety certificates from Vietnam Plant Protection Department. The U.S Animal and Plant Quarantine Organization used to point out 18 kinds of insects potentially coming to the U.S in fresh mango imported from Vietnam.

Many things should be done to bring expectations to reality. The most difficult thing currently is managing seeding quality. And there are still technical barriers from importing markets and there are also challenges in term of market management.

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