Vietnam poised for fruit and vegetable boom, but faces challenges

Vietnam has enormous potential to become one of the leading countries in the production and export of tropical fruits, vegetables, and flowers in the regional and international markets, stated Mr. Dang Phuc Nguyen, Secretary-General of the Vietnam Fruit and Vegetable Association (Vinafruit).

Vietnam is among the countries that export large volume of fruit, especially to China, the US, the EU, South Korea, Japan, and ASEAN. From $3.3 billion in 2022, fruits and vegetable exports soared to $5.6 billion in 2023, and $7.2 billion this year.

However, the challenges remain. The fruit and vegetable industry faces supply chain limitations, strict standards compliance issues (e.g., VietGAP, GlobalGAP, Smeta, HACCP, Halal), and a predominance of low-value fresh exports.

On the other hand, transportation infrastructure is not synchronized. Intra-regional transport and expressways have not been invested in to the required level, increasing transportation costs and time, causing difficulties in harvesting, preserving, and resulting in significant post-harvest losses (about 20-30%).

Furthermore, Vietnam's fruit, vegetable, and flower exports still heavily rely on the Chinese market (about 65%), leading to high risks when there are changes in policies or import requirements and standards.

In addition to the above difficulties, Mr. Nguyen Thanh Tung, Deputy General Director of Dong Giao Export Food Joint Stock Company (Doveco), said that farmers still mainly consume products through traditional channels, and the link between businesses and farmers is very weak.

To improve the connection between producers and distributors, according to Mr. Tung, it is necessary to manage product quality right from the input materials stage, orient farmers to market demands, and avoid the situation of "good harvests, low prices" and chasing trends seen in previous years.

On the other hand, the State needs to have planning for fruit-growing regions suitable to the geography and soil of each region. Along with that, it is necessary to diversify products and innovate products.

According to Mr. Nguyen, promoting supply chain links is the "key" to improving the value and competitiveness of Vietnam's fruit and vegetable industry.