(HSV VIETNAM GROUP) – The protocol on frozen durian and fresh coconut will help processed fruit and vegetable exports set a new record of 1.4 billion USD this year, according to the General Secretary of the Vietnam Fruit and Vegetable Association.
Speaking to VnExpress, Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, predicted that this year will be a new record year for processed fruit and vegetable exports with a turnover that could reach 1.4-1.5 billion USD. Although the growth rate of this group is slower than that of fresh fruits and vegetables, they still contribute significantly to stabilizing prices and enhancing commodity value.
"Processed fruits and vegetables not only help prolong preservation time but also increase the value of goods 3-4 times compared to fresh products," he said.
Vietnam signed a protocol on August 19 to officially export frozen durian and fresh coconut to China. According to businesses, this will be an important boost for Vietnam's fruit and vegetable exports, especially processed products.
Mr. Nguyen Lam Vien, Chairman of the Board of Directors of Vinamit Joint Stock Company, who has more than 30 years of experience exporting dried fruits to China, said the company planned to export frozen durian to this market this year, focusing on modern supermarket channels.
"The signing of the protocol in August is a favorable condition for Vinamit to accelerate export progress in the fourth quarter. Frozen durian is expected to contribute positively to the company's processed product revenue," he said.
Similarly, GC Food Joint Stock Company (GC Food) is also taking advantage of this opportunity to expand exports of processed products such as coconut jelly and aloe vera to China.
Deputy General Director of GC Food's International Business Division Nguyen Diep Phap, said this is a potential market this year and if favorable, export activities will have new steps forward.
According to data from customs, in the first 7 months of the year, Vietnam's export turnover of processed fruits and vegetables reached about 800 million USD, an increase of 11.4% over the same period last year. Major markets such as the US, China, EU, Japan and Korea are having high demand for dried fruits, coconut jelly, juices and canned goods. Among them, natural products that are good for health such as coconut products took the lead with a turnover of 130 million USD, an increase of 53% over the same period last year.
Thanks to increased export turnover of processed fruits and vegetables, in the first half of this year, prices of agricultural products such as coconuts, mangoes, bananas and jackfruit remained stable. In particular, as Vietnamese frozen durian gains a foothold in the Chinese market, this fruit is likely to increase in value and status even further.
In addition to the Chinese market, the General Secretary of the Vietnam Fruit and Vegetable Association also commented that processed fruits and vegetables are having many advantages when exported to markets in Northeast Asia such as Japan, Korea, Taiwan and Hong Kong. These markets have high GDP and are willing to spend on health protection products. Therefore, Vietnam's processed fruits and vegetables have great potential for development.
However, according to him, geopolitical fluctuations in the Middle East and economic recession in major markets such as Japan, Korea, and the EU could affect corporate profits. In particular, the price of raw materials for processed products is increasing significantly. To control agricultural product prices, Mr. Nguyen recommends that businesses need to expand raw material areas, manage quality from seedlings to production and processing, ensuring products are always of high quality.
The Government and ministries and branches also need to support localities in planning processing zones and providing policies to encourage investment, support capital and technology transfer for the processing industry to develop sustainably, contributing to stabilizing output for farmers.
Ha Diem HSV