Durian is the fruit in focus here, and the latest figures from the General Statistics Office reveal an impressive performance. Durian production in the first six months of the year reached 487,700 tons, a 20.3% increase compared to the same period last year.
Mr. Dang Phuc Nguyen, Secretary-General of the Vietnam Fruit and Vegetable Association, highlights a significant surge in the country’s durian exports, especially during May and June. Specifically, in May, durian exports hit $450 million, marking a 107% increase from April and a 34% jump from May 2023.
In June, Vietnam’s durian exports are estimated to have reached $600 million. This means that in just two months, the country earned over $1 billion from durian exports alone.
For the first six months of 2024, Vietnam’s durian exports totaled $1.5 billion. Durian remains the leading fruit in terms of export value within the country’s key fruit and vegetable export group. In fact, durian exports are currently four times higher than those of dragon fruit, which previously held the top spot.
Vietnam’s durian exports surpass $1 billion in just two months. Illustrative image
The Secretary-General of the Vietnam Fruit and Vegetable Association notes that China remains a significant buyer of Vietnamese durian. However, businesses must exercise caution regarding the growing region codes and the quality of durians exported to this market.
Additionally, the Plant Protection Department (under the Ministry of Agriculture and Rural Development) advises local authorities and businesses to closely monitor the growing region codes and packaging facility codes to prevent the purchase of goods from unauthorized sources, which could impact the export activities of other enterprises.
According to experts’ forecasts, Vietnam’s durian exports are expected to reach $3 billion in 2024. Furthermore, this figure could climb to $3.5 billion if the country successfully signs a protocol on frozen durian exports.
Some gardeners in the Mekong Delta region report that durian yield this year averaged around 15 tons per hectare, slightly lower than last year. Nonetheless, farmers still profit between VND 700 million and VND 1 billion per hectare (depending on yield and selling price after deducting production costs) due to the currently high durian prices, ranging from VND 60,000 to VND 100,000 per kg.
According to the Ministry of Agriculture and Rural Development, Vietnamese durian is currently exported to 22 countries and territories worldwide. In addition to fresh durian, frozen durian is also a significant product for businesses in multiple markets.
In less than a decade, Vietnam’s durian cultivation area has nearly quintupled. As of 2023, the country’s durian area increased from 32,000 hectares in 2015 to over 150,000 hectares, with production soaring from 366,000 tons to over 1.2 million tons during the same period.
Why Is Vietnamese Durian So Successful?
Vietnamese durian is highly popular in the Chinese market. Image: PN
Vietnamese durian is currently exported in large quantities to China, which remains the largest market for this “king of fruits.” In the first quarter of 2024, the value of durian exports to China accounted for a staggering 98% of Vietnam’s total durian export value.
According to data from the Chinese Customs, in the first two months of 2024, Vietnam surpassed Thailand to become the leading exporter of durian to China, with a volume of 32,750 tons worth $161 million, representing a 2.4-fold increase in volume compared to the same period in 2023.
In the Chinese market, besides Thailand, Malaysia is another competitor for Vietnamese durian. As of June 19, Malaysia was officially allowed to export fresh durian to China, intensifying the competition in this market.
However, given the impressive performance in May and June, Vietnamese durian can confidently aim to achieve its set goals and remain competitive in China.
According to Mr. Dang Phuc Nguyen, Vietnamese durian has several advantages, including abundant production, year-round harvesting, and a lack of direct competition with Thai durian during certain periods. Additionally, Vietnamese durian has a shorter transportation time, ensuring freshness and reasonable prices. The quality of frozen durian is also better controlled.
The most significant challenge for Vietnamese durian in China is maintaining quality and protecting its brand. Therefore, Mr. Nguyen emphasizes the need to improve the stages of cultivation, harvesting, and packaging to avoid a decline in durian quality driven by profit-chasing practices.
While Malaysian durian targets the premium segment in the Chinese market, Vietnamese durian typically caters to the mass market, making it more accessible to a wider range of consumers in this populous country.
On the other hand, the potential for Vietnamese durian exports is enormous. According to the Plant Protection Department, the Ministry of Agriculture and Rural Development, negotiations with India are underway to expand the market for Vietnamese durian. After China, India, with its massive population, is expected to be a promising market for Vietnamese durian, reducing dependence on the Chinese market and paving the way for sustainable development and diversification of consumption sources for this fruit.
Reference: GSO, Customs, Mard
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