Vietnamese agriculture items become premium consumer products in US
VOV.VN - Journalist Douglas Yu of US business magazine Forbes recently published an article affirming that Vietnamese agriculture has become a new frontier for premium consumer products in the US.
According to the journalist, a favourable tropical climate all year round, an abundance of natural resources, and local authorities’ prioritisation of sustainable farming practices are factors helping Vietnam to become an increasingly popular destination for US manufacturers to source high-quality agricultural produce, ranging from rice, green coffee, cashew to walnuts.
He quoted statistics released by the Ministry of Agriculture and Rural Development (MARD) as saying that the domestic agricultural sector has experienced its highest growth, reaching 3.36% in 2022, compared to the past three years, thanks in part due to local government funding and incentives.
“According to Census Bureau, the U.S. is one of the top trading partners with the Southeast Asian country, and has recently surpassed China and Cambodia to become Vietnam’s largest business associate in the agricultural industry with an export turnover of US$10.8 billion,” he wrote.
To understand how Vietnamese products have become the new premium for US consumers, the journalist mentioned the recent rise of Vietnamese coffee as exemplified by Nguyen Coffee Supply, as well as the expansion of the nation’s Trung Nguyen Legend as it opened its first US location in the heart of Little Saigon in Westminster of California.
He also quoted Nguyen Nam Hai, chairman of the Vietnamese Coffee and Cocoa Association, as saying that sustainability plays a major role in driving interest in growing more robusta beans, with the country accounting for more than half of the global robusta supply.
Yu outlined that robusta coffee serves as a quintessential part of Vietnamese culture and social life to a degree that international coffee behemoths are scrambling to compete domestically.
According to the journalist, typical US consumer interest in Vietnamese coffee is also heating up, as evidenced in Nguyen Coffee Supply’s 1,100% annual growth in retail distribution across Whole Foods Market (WFM) and other regional independent stores, as well as several new entries to the market such as Sang and Nam Coffee.
He stressed that a cost-efficient labour market and close ties with the US are also serving to lure American CPG operators to increasingly capitalise on the benefits of the Vietnamese market.
“When we went to Vietnam and spoke to the local people, they seem to really love the idea of working with Americans, and it was such a two-way street of gratitude,” the article quoted Dominic Purpura, founder and CEO of Mela, a rapidly growing premium watermelon juice brand.
Yu went on to reveal that Anthony Cadieux II, who cofounded ultra-premium coconut water company CoAqua with Justin Bruckel, said that the waterways of the Mekong Delta in Vietnam are exactly what his company needs.
“In my opinion, Vietnam has become a source of premium ingredients due to the country’s emphasis on sustainable farming practices,” Cadieux said.
“What also stands out is the pride the Vietnamese people take in producing the highest quality fruits, vegetables, and other agricultural products,” he added.
