Ample room for Vietnamese exports to China in 2024

Magnet from a market of 1.4 billion people

According to the Ministry of Agriculture and Rural Development, agro-forestry-fisheries exports last year saw a slight decrease by 1.2% to US$53.1 billion compared to 2022.

China, the United States, Japan, the EU, and ASEAN all continued to be the five largest consumers of Vietnamese agricultural products. However, Vietnamese agricultural exports to several key markets all witnessed negative growth, with the exception of China.

Statistics show farm produce to the Chinese market edged up by 17% to US$12.2 billion compared to 2022, accounting for 23% of the agricultural sector’s total export value. Accordingly, China officially surpassed the US to become the largest consumer of Vietnamese agro-forestry-fishery products.

Most notably, durian exports to China enjoyed impressive growth with US$2.3 billion, accounting for 32% of the overall share of the market.

Ngo Tuong Vy, director of Chanh Thu Fruit Import-Export Company, emphasised that there is ample room for exporting Vietnamese durian to the market as local businesses have not yet secured enough durian products to partners last year.

Cassava is also an agricultural product which had an export turnover of billions of US dollar to the Chinese market last year. Statistics from the General Department of Vietnam Customs indicate that Vietnam raked in US$1.3 billion from exporting cassavas overseas, with China consuming more than 90% of the total.

Furthermore, a number of other agricultural export products to China increased sharply, including rice up by 19.6%, cashew nuts up by 55%, and coffee up by 10.3%.

Along with farm produce, many aquatic businesses also view China as a key market. Specifically, pangasius exports to China decreased by 20% compared to 2022, although this is still the main importer of Vietnamese pangasius.

Despite pangasius exports to China decreasing by 20% compared to 2022, China is the largest consumer of Vietnamese pangasius, said Thu Hang, an expert at the Vietnam Association of Seafood Exporters and Producers (VASEP).

With these positive results recorded last year, industry insiders anticipate bright prospects ahead for more Vietnamese products to make inroads into the market, especially after the recent working trip to China led by Deputy Minister of Agriculture and Rural Development Tran Thanh Nam.

Acceleration of exports in 2024

Deputy Minister Nam said that Vietnam and China have completed procedures, opening the door for Vietnamese avocados and passion fruits to enter China.

With these positive signs ahead, Vietnamese fruit and vegetable businesses have set sights on an export target of between US$6 – 6.5 billion this year, of which durian continues to dominate the market with estimated turnover of between US$3 - 3.5 billion.

The Chinese market is therefore expected to account for about 80% of Vietnamese fruit and vegetable export market share this year.

Moreover, there is good news that China will work to create favourable conditions for Vietnamese rock lobster to return to its market, presenting a good opportunity for Vietnam to export the product this year.