Agricultural product exports boom in first months of 2024
Maintaining last year's growth momentum, the exports of many Vietnamese agricultural products posted strong performance in the first months of this year.
According to experts, such performance will greatly help the agricultural sector to achieve its ambitious goals – a growth rate of 3-3.5% and export revenue of around US$54-55 billion.
Vietnam’s fruit and vegetable exports brought home US$510 million in January, more than double that of the same period llast year. The result came largely from increased demand in China during the Lunar New Year festival, especially in durian product exports.
As soon as Vietnamese durian was allowed to enter the Chinese market, it held a 35% market share, just after Thailand with a 65% market share.
Vietnam currently exports durian to more than 20 markets, but its durian exports to China account for 99% of total export turnover.
General Secretary of the Vietnam Vegetable and Fruit Association Dang Phuc Nguyen said that durian will continue to be a strategic product of Vietnam’s fruit and vegetable industry in 2024. If China opens its door to Vietnamese frozen durian this year, Vietnam’s exports of fresh, frozen and processed durian can reach US$3 - 4 billion.
Fruit and vegetable export turnover in 2024 can reach a new peak, possibly US$6.5 - 7 billion, Nguyen said, suggesting businesses take advantage of protocols on passion fruit, avocado, coconut and frozen durian once Vietnam and China sign them.
Nguyen Khac Tien, chairman of the Board of Directors of the Ameii Vietnam Joint Stock Company, said that there is great potential and room to boost Vietnam’s exports of fruits and vegetables to China.
Through working with Chinese corporations, Ameii realised the potential to increase the turnover of processed durian products, he said.
Since the beginning of 2024, Vietnam's rice industry has also received good news as many contracts and memoranda of understanding on rice exports have been signed.
Firstly, seven Vietnamese enterprises won eight out of 17 bidding packages to supply over 300,000 tonnes of rice to Indonesia. In addition, Indonesia is planning to continue importing 2 million tonnes of rice this year.
Meanwhile, the Republic of Korea (RoK) planned to open up to nine biddings to import rice from several suppliers around the world, depending on its domestic supply situation. The RoK gives Vietnam a total quota of over 55,000 tonnes.
In early February, Vietnam signed a memorandum of understanding on the sale of 1.5 - 2 million tonnes of rice yearly to the Philippines for five years. The Philippines will be the world's leading rice importer in 2024 as it announced a record import demand of 3.8 million tonnes each year. Currently, Vietnamese rice accounts for over 80% of the total rice imported to the Philippines.
Meanwhile, India, which supplies about 40% of rice in the world, has so far shown no signs of resuming its rice exports. As a result, in January alone, Vietnam exported 500,000 tonnes of rice, earning US$296 million, an increase of 39.4% in volume and 59% in value compared to the same period in 2023.
In January, Vietnam’s coffee exports also reached 230,000 tonnes with a value of US$623 million, an increase of 61.6% in volume and more than double in value compared to the same period in 2023.
From the beginning of the year, the coffee prices in domestic and world markets continuously reached new peaks. Currently, the domestic coffee price has exceeded VND80,000 per kg - a record high ever.
According to the Vietnam Coffee and Cocoa Association, importers around the world are looking to Vietnamese coffee. Coffee prices are expected to soar on low supply, especially as Vietnam’s 2023-2024 crop production is forecast to reduce by 10%, to about 1.6 - 1.7 million tonnes.
Vietnam has been striving to boost the shipment of agricultural, forestry and fishery, especially to key markets like China, the US, Japan, and the EU, and new markets with much potential such as Muslim countries, the Middle East, and Africa. The Ministry of Agriculture and Rural Development also coordinates to support trademark protection and geographical indications for potential Vietnamese products.
